Shanghai is accelerating its transformation into a global trade and finance hub with a breakthrough initiative: the seamless integration of its “Offshore Connect” platform with China's Cross-Border Financial Services Platform. This development opens a new digital window for verifying offshore trade transactions—streamlining compliance, reducing risks, and speeding up settlement for banks and enterprises alike.

Rethinking Offshore Trade: From Blind Spots to Blockchain-Style Clarity

In traditional offshore international trade, goods flow overseas while payment is settled domestically. However, the disconnect among order flow, logistics, and capital movement has long posed challenges for banks in validating trade authenticity. The solution? A data-driven approach powered by technology.

Shanghai's “Offshore Connect” is the first platform in China to link domestic financial institutions with global logistics and customs data in real time. The result: a sharper, smarter picture of offshore transactions.

What's New: A Unified Digital Infrastructure

With the support of the State Administration of Foreign Exchange and Shanghai Free Trade Zone authorities, the integration project kicked off in August 2024. Within months, the joint working group completed demand analysis, module design, system development, and testing—on time and on target.

The upgraded system delivers two transformative capabilities:

1. Smart Trade Verification

Seamless access to international customs records, bills of lading, shipping schedules, port handling logs, and air/sea freight manifests

Real-time vessel tracking, container-level inspection, and cargo validation

One-click authenticity reports that drastically reduce documentation burdens and manual checks

2. Built-in Risk Control

Digital “stamping” of logistics documents to prevent repeated use or pledge

Instant alerts on duplicated or suspicious financing applications

Stronger protections for banks and more trustworthy trade credentials for exporters

Impact: Faster Settlements, Lower Risks, Greater Confidence

With the verification process now fully digitized and embedded into the Cross-Border Financial Services Platform, participating banks can complete reviews in under 30 minutes—a dramatic improvement from the previous 1–2 day manual timeline.

Early adopters report:

Accelerated approval of offshore settlements

Increased transparency and data traceability

Reduced compliance risks across cross-border operations

Driving Real Growth: Numbers That Matter

Shanghai's bonded zones are already seeing results:

Over 350 companiescurrently engage in offshore trade via the platform

Major players include multinationals like Sony Electronicsand Yihai Kerry

In 2024, offshore settlement volume surged by 61%, with bonded areas contributing more than 60%of the city's total offshore trade

Policy Push: Tax Relief to Power Offshore Expansion

As of April 1, 2025, a pilot policy in the Shanghai Free Trade Zone and Lingang area exempts stamp duty on offshore international trade. This fiscal incentive is expected to further reduce transaction costs and stimulate business innovation.

Looking Ahead: From Pilot to National Model

With its strong base in finance and logistics, Shanghai aims to deepen the application of the Offshore Connect platform by:

Encouraging enterprises to explore new offshore trade models

Supporting banks in building differentiated financial services

Promoting the platform as a replicable model for other Chinese free trade zones