China's customs watchdog has approved the Pingtan Comprehensive Pilot Zone as a pilot city of cross-border e-commerce, according to the local customs authorities.

The General Administration of Customs (GAC) announced in a statement on Jan 2 that it would allow cross-border e-commerce in Pingtan, making it one of about twelve pilot cities of cross-border e-trade in China.

GAC said that Pingtan boasts favorable policies in terms of reforms and economic experiments, and it has a "solid foundation" in cross-Straits petty trade, which gives it an advantage in cross-border e-commerce.

GAC also ordered Pingtan customs to enhance communication with Fuzhou customs and make preparations for supporting infrastructure and an e-commerce platform.

Ma Donggen, deputy director of the local economic planning bureau, detailed three aspects concerning Pingtan's advantages as a cross-border e-commerce pilot zone:

First, Pingtan is the closest point on the Chinese mainland to Taiwan, which greatly reduces the logistics costs. Second, Pingtan has implemented a series of preferential policies concerning cross-Straits trade, including the right to bring in duty-free Taiwan products of up to 6000 yuan ($971), concerning six types of Taiwan products - grain and oil, farm products, garments, artware, light industrial products and medicine. Third, Pingtan actively explores new management modes and simplifies executive procedures - which will create a sound environment for cross-border e-commerce cooperation.

Zhou Zhizhong, a Taiwan businessman in the field of biotechnology, said many of Taiwan's special products are not known in the Chinese mainland and online distribution will help to promote the products.

Chen Yiwei, a businessman in the e-commerce industry, said that e-commerce has witnessed a sharp growth in Taiwan, but cross-border e-trade cooperation has not developed sufficiently, adding that the opening of such pilot areas definitely reduces costs on all fronts for businesspeople on both sides of the Straits.

Chen said that he plans to build a tax-free website featuring Taiwan products, and that he will capitalize on Pingtan becoming a cross-border e-commerce pilot city to optimize and promote his online resources on the Chinese mainland.

Edited by Chen Zhilin and Niva Whyman