The first cross-border e-commerce warehouse of southwest China's Xizang Autonomous Region began operations Thursday in Kathmandu, Nepal.
The project is part of the China-Lhasa cross-border e-commerce comprehensive pilot zone's overseas business (code 9810), which aims to make Chinese goods more accessible to Nepali consumers.
On Thursday morning, two trucks laden with garments, household appliances, and other goods valued at approximately 80,000 U.S. dollars departed from Lhasa, heading to the new overseas warehouse in Kathmandu.
In such a business model, the goods are first exported to the warehouse via cross-border logistics. After the transactions are completed through cross-border e-commerce platforms, the goods are delivered to overseas buyers, and relevant data is sent to local customs.
"We can send the goods to the overseas customers from an overseas warehouse, which has significantly reduced logistics costs as we don't have to receive orders before shipping those items from China," said Fu Guangyi, general manager of Lhasa Zanyi International Supply Chain Management Company.
A local official highlighted the role of the warehouses in further market expansion.
"The establishment of overseas warehouses has greatly enhanced the efficiency in operation. It will aid Lhasa-based enterprises in tapping into the South Asian market. We're working on further optimizing land routes and improving the customs clearance efficiency for goods heading to South Asia," said Sun Guangyao, deputy director of Lhasa's commerce bureau.
Xizang opens first cross-border e-commerce warehouse in Nepal
The government work report submitted Wednesday to China's national legislature for deliberation highlighted the importance of reducing logistics costs to enhance economic efficiency and industrial competitiveness, while also emphasizing the critical role of logistics in stabilizing foreign trade, said industry experts.
Chinese Premier Li Qiang delivered the government work report on Wednesday at the opening meeting of the third session of the 14th National People's Congress (NPC).
The work report called for efforts to accelerate the development of a unified and open transportation market and implement a nationwide initiative to lower logistics costs, a move experts say, is crucial for high-quality economic growth.
The initiative aligns with the Chinese authorities' Action Plan for Effectively Reducing Logistics Costs, released in November 2024, and the relevant directives from the Central Financial and Economic Affairs Commission. Over 10 of the 31 provincial-level regions in the Chinese mainland have already worked out specific local measures for implementation.
"According to the action plan for effectively reducing logistics costs, the goal is to lower the logistics cost-to-GDP ratio to 13.5 percent by 2027. Achieving this target would cut the nation's total logistics costs by over 1 trillion yuan (138.2 billion U.S. dollars) annually, significantly boosting economic efficiency," said Cai Jin, president of the China Federation of Logistics and Purchasing (CFLP).
The initiative also aims to modernize supply chains, streamline production processes, and reduce unnecessary costs, ultimately boosting the competitiveness of the real economy, experts say.
The government work report also highlighted the role of logistics in stabilizing foreign trade and advancing cooperation in joint construction of the Belt and Road. To boost cross-border e-commerce, the report called for improving international delivery systems and expanding overseas warehouse networks.
In 2024, China's cross-border e-commerce imports and exports grew by 10.8 percent to 2.63 trillion yuan (363.5 billion U.S. dollars), driven by rapid growth in air freight, freight forwarding, and overseas warehousing. Chinese companies have built over 2,500 overseas warehouses, covering a total floor space of more than 30 million square meters.
Additionally, the government work report stressed the need to ensure stable operation of the cross-border China-Europe freight train transport service and to accelerate development of the Western Land-Sea New Corridor.
As Chinese manufacturing companies expand globally, logistics firms are increasing investments in traditional markets like Europe and the United States, as well as emerging markets in Southeast Asia, Mexico, and the Middle East, experts say.
"As our industries go global, logistics and supply chains will play a crucial supporting role, especially in procurement and resource supply. Ensuring the security of logistics and supply chains is essential in the course of overseas investments. We must strengthen the construction of the international logistics system to enhance the resilience and security of our overseas investments," Cai said.
China prioritizes logistics efficiency to enhance competitiveness, global trade
