In the last few months, China, through a yuan devaluation and slowing economic growth, has remained fixed on strengthening its position in the global market through cross-border payments and commerce.
The People’s Bank of China revealed last June that it would lend a hand to the nation’s efforts to expand cross-border business finance, a move that backs banks’ issuing of bonds in yuan.
Now, China Public Procurement Limited (CPP) is making its own effort to support the nation’s cross-border vision. Reports Monday (Jan. 4) said CPP inked a collaboration deal with ChinaPay and Amazon International Investment Groups Company.
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Together, the businesses will develop infrastructure for a cross-border trading platform between China and South America, reports said, and target cross-border payments and settlement to support trade between the two regions.
The tie-up will seek to tap into the more than $4 trillion of GDP across South America, as well as take advantage of stronger government and market ties on the continent. According to reports, ChinaPay recently launched business in Brazil and, during its meeting with CPP and Amazon International Investment, highlighted the rising demand for cross-border trade between South America and China.
To overcome challenges regarding local regulations and foreign exchange friction, the businesses said they would focus on public procurement from overseas suppliers. Reports noted that the firms are also eying possible South American partners into their collaboration. The deal will also include collaboration with local banks to promote the acceptance of ChinaPay services.
The companies said they expect more than $10 billion in volume to stem from cross-border trade between China and South America, according to reports.