Amazon to up its China presence

Amazon to up its China presence

Amazon has signed a deal in China which will allow it to increase its presence in the country.

The online retailer has signed a memorandum of understanding with the Shanghai Free Trade Zone, allowing it to operate under less stringent trade regulations and sell a wider range of goods in the country.

Once Amazon establishes itself in the zone, which has more relaxed import and export regulations, it will let Chinese customers access Amazon's global supply chain, and allow small and medium sized businesses in China to export their products through Amazon.

In a statement seen by Reuters, Amazon's senior vice president of International Consumer Business Diego Piacentini said: "I look forward to working with our Shanghai partners to realize the incredible opportunity of developing the best cross-border shopping experience possible for not only customers in China but also around the world and establishing Shanghai as a recognized international cross-border e-commerce center."

The Free Trade Zone was launched last year to try and attract overseas businesses to operate in China, with firms such as Citigroup and HSBC setting up branches there. Amazon has operating in China for ten years, where the online retail market is dominated by Chinese companies Alibaba and JB.com.