According to the World Trade Organization, Chinese merchandise exports grew from $249 billion in 2000 to $2 trillion in 2012, an increase of 703 percent. During that same period, Chinese merchandise imports grew from $225 billion to $1.7 trillion, an increase of 656 percent. China is now first in worldwide exports and second in worldwide imports, behind only the United States.
By comparison, U.S. exports grew by 99 percent ($785 billion to $1.2 trillion dollars) and imports by 47 percent ($1.2 trillion to $2.3 trillion) during the same period, according to the U.S. Census. China also is now the world’s second largest economy in terms of Gross Domestic Product (GDP) and Congressional Research Service analysts anticipate it could become the world’s largest economy within five years.
This trade growth is driving the need for HYPERLINK “http://www.amberroad.com/global-trade-management-solutions/“global trade management solutions in China.
EasyCargo is a cloud-based solutions company with a specific focus on a subset of global trade management called China Trade Management, or CTM. EasyCargo’s CTM solution provides extensive automation to support the Chinese government’s regulations for an import regime called Processing Trade.
Processing Trade affects companies that import materials and components into China and use those materials and components to manufacture finished goods for export to foreign markets. When properly administered, Processing Trade transactions are exempt from import duties and value-added-taxes on export.
Because Processing Trade can reduce product costs by 25 percent or more, qualifying goods for the program has become increasingly popular. Goods qualifying for the Processing Trade program now account for more than 30 percent of all Chinese imports.
“Many of our existing North American and European-based customers do business with or in China, either as a source of supply, a manufacturing base, or as a market for exports,” said Jim Preuninger, CEO of Amber Road. “Our acquisition of EasyCargo will enable us to offer deep China-specific trade capabilities to our existing customer base as well as access the growing Chinese market.”
EasyCargo developed its first CTM solution between 2008 and 2009. The solution reached commercial status in 2010. EasyCargo supports more than 40 customers today, including category leaders such as Bosch, BMW, Continental Automotive and General Electric.
In addition to its cloud-based solutions, EasyCargo has an in-house team of trade experts who monitor, collect, interpret and codify Chinese trade regulations. Those professionals will be folded into Amber Road’s Global Knowledge®team, while the rest of the EasyCargo employees will complement Amber Road’s engineering, professional services, customer support and business development staff.
“It is very exciting for us to join such a prominent player in the global trade management space,” said Kae-por Chang, CEO and founder of EasyCargo. “By adding our deep China Trade Management capabilities to Amber Road’s comprehensive GTM suite, we believe we can offer a complete solution to companies doing business in China and abroad.”