The Qingdao Area of the China (Shandong) Pilot Free Trade Zone (Qingdao FTZ) is accelerating digital trade development by modernizing traditional commerce, expanding cross-border business services, and exploring new applications for artificial intelligence.

One major initiative is a network of digital warehouses covering 100,000 square meters. Equipped with internet of things devices, blockchain technology, and AI-powered inspection systems, the facilities enable companies to track commodities throughout storage and transfer processes.

The system has improved cargo processing efficiency by more than 40 percent and increased pickup efficiency by around 50 percent. Digital warehouse receipt financing has also helped small and medium-sized trading companies secure more than 5 billion yuan ($748.5 million) in funding.

Beyond commodity trading, the Qingdao FTZ is expanding its digital services to help businesses enter overseas markets. Its integrated overseas expansion service center has brought together 72 service partners and 18 cross-border e-commerce platforms, with access to warehousing resources in 87 countries.

An AI-powered overseas warehouse platform, launched in September 2025, covers more than 50 warehouses across 23 countries. It has provided warehouse matching services to 117 companies, helping them identify suitable facilities for international operations.

Alongside these efforts, the Qingdao FTZ is developing new forms of cross-border digital trade.

In August, it partnered with Inspur Cloud to establish northern China's first cross-border AI token processing facility, designed to support secure data processing and AI services.

In September, a Qingdao-based AI company used the facility to generate content for a South Korean client, successfully testing a process linking domestic computing resources, compliant cross-border data transmission, and overseas delivery of digital services.

The China Unicom (Qingdao) Intelligent Computing Center provides computing power to support digital trade activities in Qingdao FTZ. [Photo/Dazhong News]