Alibaba Group Holding Ltd., China’s largest e-commerce company, will offer subsidies to Chinese exporters that complete transactions on its online platform, it said in a press release Tuesday.
Users of its OneTouch platform will get a subsidy of 3 fen for every US$1 of transaction. A company will receive a 30,000 yuan rebate if it makes US$1 million in transactions.
The subsidies are expected to attract more small and medium firms to the platform amid surging labor costs and high raw material prices.
The move comes as Alibaba prepares for an initial public offering in the United States.
“Export transaction is a lengthy process, from signing contracts to shipment, and that generates huge amount of data. The online platform would enable us to get involved in the whole process and get our hands on a whole set of trade data,” said Wu Minzhi, president of Alibaba’s international trade division.
The OneTouch platform offers free services on rebate, customs clearance, financing, foreign exchange and logistics.
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