Alibaba’s Executive Chairman Jack Ma (left) and Belgian Prime Minister Charles Michel (right) at a previous event

Alibaba Group Holding has signed a memorandum of understanding (MOU) with the Belgian government to extend its electronic world trade platform (eWTP) to Liege. Belgium thereby becomes the third country to welcome Alibaba’s initiative after Malaysia and Rwanda. eWTP seeks to lower barriers to global trade for small and medium-sized enterprises (SMEs). “With over 98% of European companies being small to medium businesses, this partnership signifies our initial and expanded effort to enhance inclusive trade opportunities for these businesses in Belgium and across Europe,” Alibaba Chief Executive Daniel Zhang said in a statement.

Alibaba-owned Cainiao Smart Logistics Network signed a contract with Liege Airport to lease a 220,000-square meter site where the Chinese company will build a smart logistics hub. Alibaba estimated the project will entail an initial investment of €75 million, with the first phase of operations expected to start in 2021. “The arrival of Cainiao reinforces the competitiveness of our airport,” Liege Airport Chief Executive Luc Partoune said. “Several Chinese companies are already here.” In September, Alibaba said it plans to invest CNY100 billion to strengthen its global logistics network over the next five years.

The eWTP was conceived by Alibaba Executive Chairman Jack Ma in 2016 as an electronic Silk Road to connect every country and give SMEs the ability to sell anywhere in the world. The benefits of using eWTP hubs include speedy customs clearance, logistics support and minimal tariffs. The first such hub was set up by Alibaba in its home base of Hangzhou, while Malaysia’s capital Kuala Lumpur became the first city outside China to become part of the initiative. The Malaysian hub is expected to be completed by the end of 2019. Rwanda recently became the first African nation to join the eWTP. Alibaba promised to help SMEs in Rwanda sell their products, such as coffee beans, on its online marketplaces. Alibaba sold a record CNY213.5 billion during its Singles’ Day shopping promotion on November 11, with health supplements, milk powder, diapers and skincare products among the most highly sought imported goods, the South China Morning Post – which is owned by Alibaba – reports.

The agreement on the eWTP initiative in Belgium is the first such deal with a European country to promote inclusive global trade. “This will be a huge opportunity to boost exports and bring wide-ranging economic benefits to society, including employment opportunities to Liege,” said Belgium Prime Minister Charles Michel. Alibaba said the new smart logistics hub will be the cornerstone of the eWTP infrastructure collaboration and facilitate access to the Chinese market. In addition to the logistics hub, Alibaba and the Belgian government will work to digitize and streamline customs procedures to allow for a more efficient clearance of goods. Alibaba and Belgian trade and investment agencies will also work on promotions, marketing and direct imports of Belgian products to increase their sales on Alibaba’s e-commerce platforms. Alibaba will also promote Belgium as an attractive destination for Chinese tourists.