The State Council approved an application from Zhejiang province and the Ministry of Commerce (MOC) to set up a pilot zone for overseas e-commerce in Hangzhou, the province’s capital.

In a written reply to the application issued on March 12, the State Council asked that the pilot zone should explore ways to improve various aspects of the country’s overseas e-commerce industry, including transactions, payments, logistics, customs clearance, tax refunds and foreign exchange settlements.

The pilot zone should develop a system and rules that suit and lead e-commerce development around the world, and become such a leading example in overseas e-commerce that other regions in the country will be able to learn from it, the State Council said.

Zhejiang provincial government should vigorously support the pilot zone, create a convenient commercial environment and ensure fair competition for companies in the zone, while guaranteeing national, cyber and transaction security as well as the quality of products. The provincial government was also asked to set up a system to record the pilot zone’s information, and apply for approval before issuing any major policy or taking on any major construction project for the pilot zone.

The State Council also asked its departments to support the development of the zone, and that the Ministry of Commerce should follow and inspect the performance of the zone, and file reports to the State Council on major issues concerning the zone.