Shanghai launches new digital tool to support offshore trade

Shanghai has launched a digital system to make offshore trade faster and safer.

The "Cross-Border Financial Services Platform – Offshore Trade Background Verification System" aims to help banks check trade documents more easily and speed up payment processes.

Offshore trade involves shipping goods overseas while settling payments in China. In the past, it was hard for banks to confirm the authenticity of such trades because the flow of orders, goods, and money was often separate. The new system helps bring these flows together using digital data.

A trial went live on June 9 which includes 21 banks, both Chinese and foreign. These banks can now check trade documents online using data from customs, shipping companies and ports.

The platform also uses shipping and air freight data to confirm a trade's background.

One of the main features is smart verification. The system uses ship tracking and cargo data to compare documents and check for fraud.

Banks can now get automated reports, which cuts down on manual checks and reduces costs.

Another feature helps prevent the double use of trade documents. It lowers the risk of companies applying for loans multiple times with the same documents.

Banks said the new system is faster and more reliable. It can complete checks in less than 30 minutes, compared to the previous one or two days. The change helps companies complete cross-border payments more quickly.

Shanghai has been developing offshore trade since 2010. Over 350 companies now use the model in bonded zones, including global names such as Sony and Yihai Kerry. In 2024, trade volume grew 61 percent compared to the year before.

Officials say this upgrade shows Shanghai's push to open up further and become a top global trade hub. The city wants to make it easier for companies to join the global market while keeping trade secure and compliant.

More updates to the system are expected in the future to support new business models and profit growth at the China (Shanghai) Pilot Free Trade Zone.