Amazon to expand in China with base in Shanghai free trade zone

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Amazon.com has signalled its intent to expand in China by setting up in the Shanghai free trade zone.

With the move it can take advantage of more relaxed import and export regulations than exist elsewhere in the country.

China’s e-commerce market is dominated by the two big players there – Alibaba and JD.com.

The US online retailer said as well as selling in China it will also help Chinese companies to export their products to buyers in other countries

The Shanghai free trade zone – opened in September 2013 – has been slow to take off with overseas businesses citing a lack of clarity on what will and will not be allowed there.

It was hailed as one of China’s boldest reforms in decades, but there ha been a lack of specific policy details since the initial fanfare.

Losses persist

Amazon’s persistent expansion has come at a cost, leaving the company with a $126 million net loss in the second quarter, up from a loss of $7 million in the same period last year.

It also forecast an operating loss of between $810 million and $410 million for the third quarter to Sept. 30, up from a $25 million loss a year ago.

with Reuters