From the Jiangsu (Suzhou) International Railway Logistics Center in Suzhou, located in Jiangsu province of China, a wide range of products such as household appliances, auto parts, chemicals and passenger vehicles set out to be exported to Europe. Many of these goods will reach the warehouses of Chinese companies in Budapest, the capital of Hungary, and from there they will be distributed to Central and Eastern European countries.
REVOLUTION IN LOGISTICS STRATEGY
Chinese exporters are using cross-border e-commerce and overseas warehouses as a strategic advantage to increase competition in global trade. Traditionally, multinational companies would set up offices to test the market before investing in China. But with the opportunities offered by the fast-growing Belt and Road Initiative, Chinese exporters are leaving this old approach behind and investing directly in overseas warehouses.
TRADE SUPPORTED BY BIG DATA AND TECHNOLOGY
Overseas warehouses offer companies the flexibility to adapt quickly to changing market conditions. For example, Xuzhou Weijia Light Industry Co., Ltd, located in Jiangsu ⁇ , is rapidly delivering its products to the South American market with the overseas warehouse it has established in Brazil ⁇ . This warehouse accelerates the distribution of Chinese goods in the region, ensuring the continuity of the trade chain.
RISE OF INTERNATIONAL WAREHOUSE
According to the data of the Ministry of Commerce, the number of China's overseas warehouses has exceeded 2,500, and these warehouses cover a total area of 30 million square meters. 1,800 of these warehouses are dedicated to meet the needs of cross-border e-commerce. With targeted policy measures launched in June, the construction of overseas warehouses continues rapidly and private sector involvement is encouraged.
A STRONG TRADE INFRASTRUCTURE
Overseas warehouses serve as a strategic intermediary hub for Chinese goods. In addition to reducing logistics costs, these warehouses also play a critical role in dealing with shipping cost fluctuations during peak season. In addition, local storage reduces the need for expedited shipping, increasing trade volume and supply chain resilience.
This new strategy of China in international trade is considered an important step to overcome disruptions in the global supply chain and plays a vital role in the development of China's foreign trade.
