Pictured is the signing ceremony of the Greenwood-Ruston overseas warehouse in Greenwood, Moscow, Russia, in July 2015. The ceremony marked the opening of the first large, legal and official overseas warehouse in Russia owned by a Chinese e-commerce company. (Photo: the Official Website of Ruston Express)

As China’s e-commerce experiences boom in cross-border trade, more platform providers and exporters are expanding their logistics systems offshore with overseas warehouses.

Their strategic layouts were encouraged in this year’s government work report delivered by Chinese Premier Li Keqiang last Saturday.

“We will expand cross-border e-commerce, support construction of overseas warehouses for exports, and promote the development of companies that provide comprehensive foreign trade services,” Li was quoted saying when opening China's annual legislative session.

The policy is hailed as an attempt by the Chinese government to encourage innovation, optimize e-commerce and facilitate exports.

Overseas warehouses are usually built by export companies to facilitate local sale and delivery.

This new form of cross-border logistics is set to help addressing problems China’s online businesses tend to face in expanding overseas operation.

Yiwu, home to China’s largest small commodity market, has set up 17 overseas warehouses last year, covering a total 36,000 square meters. Meanwhile, an overseas warehouse union was founded.

Currently, express delivery business has been gaining strong momentum in China. By December 25, 2015, over 20 billion items have been mailed in China, far more than the initial target of 6.1 billion set by China’s 12th Five-Year plan.

Despite the downward pressure China’s economy is facing, the industry has maintained 54.6 percent annual growth in the last five years. Transnational shipment also increased.

Sources say the Chinese government will also improve legislation and tax services to better accommodate cross-border e-commerce.