(Yicai) Nov. 8 -- Complex customs regulations and tariffs are major problems for small and mid-sized enterprises in cross-border online commerce, which impinges on their competitiveness in international trade, according to the president of the Chinese arm of US delivery giant FedEx.

Regulations and tax policies vary greatly between countries, leading to substantial differences in business environments, Chen Jialiang told Yicai at the China International Import Exhibition in Shanghai.

Global logistics in China is experiencing robust growth, with many SMEs in need of such services, he said. Increasing numbers are exporting goods abroad through cross-border e-commerce platforms, not only to European and American markets but also to Southeast Asian countries, Chen noted. SMEs have begun to account for a larger share of FedEx's customer base, he added.

The government could provide support by making information more accessible, Chen said. A website listing the policies and regulations of different countries would help SMEs lacking experience in international trade, according to Chen. It could also hold more exhibitions overseas so domestic SMEs have more arenas in which to showcase their products, he said.

In addition, micro and smaller foreign trade businesses expanding into international market are highly sensitive to logistics costs and transport speeds, and they need more logistics services that offer cost-effectiveness, Chen pointed out.

Regarding FedEx’s business in China, Chen said non-first-tier cities are also a future focus for expansion. Its more than 300 international flights a week in the country are mainly concentrated on Beijing, Shanghai, and Guangzhou. FedEx is now looking at cities like Xiamen, Qingdao, and Zhengzhou, and plans to expand its ground network and branch offices to third- and fourth-tier cities, he said.

Increasing demand for cold chain transport and warehousing from local Chinese firms is also a key area for logistics companies to expand their presence, Chen said. FedEx has more than 90 cold chain facilities globally, including an international express and freight hub in Shanghai and an Asia-Pacific hub in Guangzhou, and plans to add more facilities in the future, he noted.

Editor: Martin Kadiev