Overseas online shopping booming in China
Staff Reporter 2013-08-08 08:44
China UnionPay credit cards and renminbi banknotes. (Photo/CFP)
Buying overseas products over the internet, dubbed "haitao" in China, has become an increasingly popular way to shop for Chinese consumers, reports the Chinese-language Guangzhou Daily.
The country's "haitao clan" is on the rise thanks to the growing value of the Chinese currency, the renminbi or the yuan, and improved online payment methods. So far, the top online shopping destination for Chinese consumers is the United States, which offers not only cheaper prices compared to domestic retailers and online stores, but also provides many more options in terms of websites and delivery companies.
However, while Amazon has introduced UnionPay payment functions, other online retailers such as Ashford and eBay have not, meaning for most Chinese consumers the best option is still to sign up for a credit card that can accept foreign currency transactions.
In China, most large banks offer credit cards capable of making US dollar transactions, including Visa, Mastercard and American Express. Tenpay, the country's leading one-stop online payment platform, is also offering special international accounts that enable shoppers to buy products overseas with foreign currency after topping up their accounts with renminbi.
The weakening Japanese yen has also made Japan a popular destination for the haitao clan, though a yen-enabled credit card is recommended due to the 1.5% exchange fee charged for US dollar credit cards. The Bank of China, Industrial and Commercial Bank of China and China Merchants Bank currently all offer credit cards which support yen transactions. The Industrial and Commercial Bank of China credit card, in particular, supports both yen and US dollar transactions.
