Nansha’s foreign trade warming up

If there is a trade war going on, someone ought to let Nansha know about it: the special economic zone on the southernmost tip of Guangzhou saw imports jump 15% in the first five months. Driving this appears to be Nansha’s “bonded logistics” status, which essentially allows for duty-free imports of goods that are then reassembled or repackaged before being distributed. These accounted for nearly 30% of total trade through the port in the January-May period, at RMB20.37 billion, up nearly 40% YoY.

Similarly to neighboring Dongguan, cross-border e-commerce is the other big driver of trade growth through Nansha, rising 25.4% YoY in the first five months. Nansha now accounts for nearly 80% of Guangzhou’s total cross-border e-commerce value. The two hottest items were – surprise – accounted for by mothers and daughters: milk powder (+3.8%) and cosmetics (+55%).

The government ought to take a pat on the back. Since April 1, VAT for imports has been cut from 16% to as low as 9% on some goods. Clothing, shoes and hats, household equipment, daily chemical products, cultural and entertainment-related products are seeing the strongest growth.

Read more on Guangzhou Daily.

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