Product details

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Abstract

China's e-Commerce giant, Alibaba Group Holding Ltd (Alibaba), signed an agreement with the Belgium government in December 2018, to open the first Electronic World Trade Platform (eWTP) of the company in the country. The deal would enable Alibaba to invest in logistics infrastructure in the region for promoting cross-border trade between Europe and China. As a part of the eWTP project, Cainiao, the logistics arm of Alibaba would lease around 220,000 square meters of logistics port at Liege airport, Belgium. It would also invest an initial EUR75 million (USD85 million) in the project and was planning to start its operations by 2021. According to market experts, the deal might open up huge possibilities for the European business houses and might help them to take advantage of the global cross border trade. It would also reduce the trade barriers for e-Commerce businesses by reducing or eliminating tariffs among the countries. In addition to this, both Alibaba and the Government of Belgium would work closely with an intention to launch new technologies to promote digitisation of customs procedures as well as more efficient clearance of goods to promote global trade specifically for SMEs. Would Alibaba's move for opening up free trade electronically in Belgium, help Chinese companies to look for more international trading opportunities? Amidst an increasing tension between the US and China, would the deal facilitate the European businesses to get the advantages of worldwide cross-border trade, particularly in the Chinese market?

Teaching and learning

This item is suitable for undergraduate, postgraduate and executive education courses.

Time period

The events covered by this case took place in 2018-19.

Geographical setting

Region:
World/global
Countries:
China; Belgium; Malaysia; Rwanda

Featured company

Alibaba
Employees:
10000+
Turnover:
CNY Consolidated around 250.3 billion
Type:
Public company
Industry:
e-Commerce

Featured protagonist

  • Jack Ma (male), Co-founder

About

Abstract

China's e-Commerce giant, Alibaba Group Holding Ltd (Alibaba), signed an agreement with the Belgium government in December 2018, to open the first Electronic World Trade Platform (eWTP) of the company in the country. The deal would enable Alibaba to invest in logistics infrastructure in the region for promoting cross-border trade between Europe and China. As a part of the eWTP project, Cainiao, the logistics arm of Alibaba would lease around 220,000 square meters of logistics port at Liege airport, Belgium. It would also invest an initial EUR75 million (USD85 million) in the project and was planning to start its operations by 2021. According to market experts, the deal might open up huge possibilities for the European business houses and might help them to take advantage of the global cross border trade. It would also reduce the trade barriers for e-Commerce businesses by reducing or eliminating tariffs among the countries. In addition to this, both Alibaba and the Government of Belgium would work closely with an intention to launch new technologies to promote digitisation of customs procedures as well as more efficient clearance of goods to promote global trade specifically for SMEs. Would Alibaba's move for opening up free trade electronically in Belgium, help Chinese companies to look for more international trading opportunities? Amidst an increasing tension between the US and China, would the deal facilitate the European businesses to get the advantages of worldwide cross-border trade, particularly in the Chinese market?

Teaching and learning

This item is suitable for undergraduate, postgraduate and executive education courses.

Settings

Time period

The events covered by this case took place in 2018-19.

Geographical setting

Region:
World/global
Countries:
China; Belgium; Malaysia; Rwanda

Featured company

Alibaba
Employees:
10000+
Turnover:
CNY Consolidated around 250.3 billion
Type:
Public company
Industry:
e-Commerce

Featured protagonist

  • Jack Ma (male), Co-founder

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