Partnership plays a role to digitise cross-border trade and enable China’s Internet Plus strategy to modernise its economy as outlined in the government’s 13th Five-Year Plan
Tradeshift, the fastest growing supplier collaboration platform, today announced a partnership with Baiwang, a leading provider of tax-related services. The partnership will accelerate the digitisation of trade-based transactions in China, as well as global trade between Chinese companies and their cross-border trading partners.
The news comes as China expands the scope of its pilot to transition from business tax (BT) to value-added tax (VAT). The new industries include construction, real estate, financial services, and consumer services. All companies in designated industries must complete their conversion to VAT prior to May 1, 2016. Baiwang is one of two government-approved companies to provide tax control hardware and software to enable the switch.
The partnership will also be instrumental in the nation’s sustainable development objectives covered in the 13th Five-Year Plan. Paperless invoicing will greatly reduce carbon emissions and save countless trees. Moreover, it will help companies and consumers with the issuance, delivery, and archival of invoices in a single solution.
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In the future, Baiwang plans to develop additional capabilities on the Tradeshift platform, including a tax cloud, tax-related financing, corporate credit, and other value-added services.
“Tradeshift’s platform will deliver billing, e-invoicing and procurement services to Chinese businesses,” said Christian Lanng, Co-founder and CEO, Tradeshift. “It will create a smooth and seamless transition to VAT, and make cross-border trade easier for global companies, including those in the U.S.”
The partnership is well timed with the announcement of China’s latest Five-Year Plan and goals to grow GDP by 6.5%, which places an emphasis on modernisation efforts and a push for infrastructure improvements. The partnership will essentially provide the technological “rails” to enable China’s economic growth goals.
“By partnering with Tradeshift, we’re aligning with the government’s goal to modernise its business technology infrastructure, which will play a major part in supporting China’s five-year plan,” said Jessie Chen, CEO of Baiwang. “The government is banking on new sources of growth – including innovation – to make-up for falling productivity. Together, Baiwang and Tradeshift are providing a meaningful solution to this challenge.”
The strategic partnership covers over 70% market share across the finance and insurance industries. Customers include the Industrial and Commercial Bank of China (ICBC), Agricultural Bank of China, Bank of China, Ping An Group, and China Railways.