Suzhou boosts cross-border trade of local enterprises, welcomes foreign investment

Suzhou, East China's Jiangsu province, is not only fueling the cross-border trade of its homegrown enterprises but also embracing foreign capital, forging a dual path of international economic engagement.

The Silk Road Nanhua Cross-Border E-Commerce Industrial Park is a 22-story building that opened in Wujiang district's Shengze town, also known as China's "Silk Capital", on May 22, 2024. The park has merged cross-border e-commerce with the town's thriving textile industrial belt.

Housing 86 foreign trade companies, 37 of which are cross-border e-commerce firms, the building accommodates a complete textile industrial chain. "Everything from raw material production to packaging and distribution is done under one roof," said Lu Ziping, deputy mayor of Shengze town.

In the first half of this year, the industrial park's cross-border e-commerce trade volume hit nearly 790 million yuan ($111.21 million), driving that of Shengze town to soar by 292.5 percent year-on-year to 2.46 billion yuan, which accounted for over 10 percent of Suzhou's total.

SCT is a comprehensive service platform specifically facilitating cross-border trade of micro, small, and middle-sized enterprises (MSMEs). Launched in Changshu, a county-level city of Suzhou, in October 2019, the platform has since served more than 44,000 MSMEs, with exports to over 179 countries and regions and a cumulative export value of 95 billion yuan.

The platform offers a one-stop service system integrating market procurement, customs clearance, foreign exchange receipt, and tax exemption. According to Gao Yechao, operations director of SCT, business entities can now enjoy customs declarations that match their cargo and legally receive foreign exchange payments via individual accounts.

SCT has also integrated market procurement with international logistics channels. Gao took the China-Europe Railway Express as an example, saying, "Although costs are slightly higher, the delivery time is nearly 50 percent shorter compared to sea transport."

While empowering local businesses to explore global markets, Suzhou simultaneously rolls out the red carpet for international investment.

A notable success story is Schaeffler Group, the world's second-largest rolling bearing manufacturer and a globally-renowned auto parts supplier that established a presence in Taicang in 1995.

The group has expanded to include six research and development centers and 17 factories across China. In 2024, its revenue in the Chinese market reached approximately 3.49 billion euros ($4.11 billion).

Li Youmei, marketing director of Schaeffler (China) Co Ltd, shared that the localization rate for Schaeffler's automotive businesses has reached 95 percent, and most of its supply chain partners are clustered around Taicang.

Renowned as the "hometown of German enterprises", Taicang has attracted more than 560 German firms, with total investments exceeding $6 billion.

With its strategic location just a 20-minute high-speed train ride from Shanghai, a thriving port, a business-friendly ecosystem, and a dual-system vocational education model, Taicang has become an increasingly magnetic destination for global investors.