BEIJING, March 12 -- The State Council has approved the setup of the China (Hangzhou) cross-border e-commerce pilot zone in Hangzhou, capital of east China's Zhejiang Province.

The application was put forward by the Zhejiang provincial government and the Ministry of Commerce, according to a statement on the Chinese government's website on Thursday.

The zone will take the lead in setting standards on cross-border e-commerce transactions, payment, logistics, customs clearance, tax refund and exchange settlement, said the statement.

It will work to settle deep problems in cross-border e-commerce, build complete industrial chains and provide experience that can be used by the sector across the country, according to the statement.

China's cross-border e-commerce has been developing rapidly to become a key channel for innovation. Boosting cross-border e-commerce will help create jobs, expand the market and bring new energy to the Chinese economy, according to the statement.

Hangzhou is home to China's leading e-commerce company Alibaba.