Tradeshift Launches Joint Ventures in China
Tradeshift, a business commerce platform, has announced two new joint ventures in China to connect millions of trading partners, digitalize the transactions between them, and offer accessible trade-based financial services to SMBs in the region.
The joint ventures can help strengthen the competitiveness of Chinese small and medium enterprises across global supply chains and support the country’s goal of raising crossborder trade to $2.5 trillion within a decade.
Tradeshift and the joint ventures offer a framework for digital connectivity and collaboration between China-based enterprises and businesses worldwide to help the country achieve its technology modernization goals.
Tradeshift entered a joint venture with Shenzhen XunLian Technology Development Co.,Ltd. located in Chongqing, one of China’s four directly-controlled municipalities. It will primarily provide supply chain financing to millions of businesses and will process more than $30 billion of gross merchandise value (GMV) worth of transactions per year for some of the largest state- and private-owned enterprises in China.
The XunLian Tradeshift joint venture—Tradeshift Supply Chain Technology Ltd.—has developed several new customers, including Zongshen and Automobile Motorcycle Exchange, both headquartered in Chongqing.
Chongqing is currently the main hub for the Chinese government’s $140- billion One Belt, One Road initiative where Tradeshift will play a central role by providing suppliers with electronic infrastructure for trading and related financial services.
The Chongqing joint venture “is a shining example of the infrastructure projects that we’re continually investing in to provide strategic support for our municipality and overall country goals,” said Zhang Rui, CEO of the new joint venture. “Through the help of modern tools necessary for supply-chain management effectiveness, we aim to improve trade and relations with all our partners, especially those in Asia, Central Asia and European countries.”
The success of the company’s strategic partnership with Baiwang, a leading provider of tax-related services, has paved the way for a joint venture named Baiwang Tradeshift. This year, the Chinese government replaced provincial business taxes with value-added taxes (VAT) for all service-based industries. This joint venture is with one of two companies in China that are authorized by the government to implement and market e-invoicing solutions for VAT compliance.
The 85-person joint venture serves more than 100 customers, including some of the largest companies in the insurance, banking and hospitality industries. Baiwang Tradeshift has processed more than 20 million invoices over the last three months, and that rate is poised to accelerate.
Tradeshift is on track to process upwards of 100 million transactions per year in China through its independent operations and joint ventures across the supply chains of multinational enterprises, private Chinese companies, and state-owned companies.