Paypal and Chongqing government agreed to set up International E-Commerce Hub in China

By on Dec 29, 2010 in Business, Technology, United States Comments
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SHANGHAI, ChinaUS based international online payment service Paypal, a subsidiary of US e-commerce giant e-Bay,  has agreed with the Chongqing government to jointly set up an international e-commerce hub. The move is to capitalized on the growing Internet sales market in China. Paypal has more than 84 million active users all over the world and provides payment in 24 currencies.

Paypal and the government of Chongqing already signed a deal to setup a foreign exchange settlement platform at the southwestern part of China. The mega-city will provide convenience to online marketers and buyers as they can transact and pay online shopping transactions. The project will break all barriers and provide seamless and efficient transactions, according to international business sites on Wednesday, December 29, 2010.

Based on a statement issued by Paypal and officials of the Chongqing government, the agreement includes the setting up of five international e-commerce centres spread over the next few months for verification, investment promotion, national telesales, merchant training and regional business development. According to Beijing-based research company, Analysys International, China‘s online payment market is approximately 725.5 billion yuan (109.5 billion dollars) during the first nine months of 2011. This was due to the continued growth in the e-commerce market that is expected to reach one trillion yuan at the end of the year.

Chongqing aims to become China‘s center for international e-commerce. It has become a favorite destination of foreign companies aiming to put up operations due to competitive wages and availability of labour force. Chongqing‘s city mayor, Huang Qifan, was quoted that the joint project with Paypal “will help Chongqing become China‘s settlement centre for international e-commerce”. He added that it will continue the “development of Chongqing into the financial services centre of west China.”
Alipay, a subsidiary of Alibaba Group of companies, is currently the leading online payment market in China with 50.5 percent share, according to Analysis International., China‘s most dominant online auction site is wholly owned by the Alibaba Group.

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