• Canadian Prime Minister Trudeau joins Jack Ma, chairman of the Alibaba Group, at the launch of the Canada Pavilion on Alibaba's online shopping site, TMall Global.

Canadian Prime Minister Trudeau joins Jack Ma, chairman of the Alibaba Group, at the launch of the Canada Pavilion on Alibaba's online shopping site, TMall Global. (Photo : Getty Images)

Alibaba Group Holdings Ltd has given foreign businesses access to the Chinese market after it signed deals with Canada and Australia, allowing products made by small and medium enterprises from the two countries to be listed on TMall Global website.

An article published by investopedia.com said that the site was launched last year and the collections of products from countries that have signed agreements with Alibaba are featured in its country pavilions.

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On Wednesday, Sept. 7, Alibaba signed an agreement with the Australian Trade and Investment Commission, providing Australian products with 'dedicated services' and allowing 'Brand Australia' to be promoted on its site. A similar agreement was also signed on Monday, Sept. 5, by Alibaba CEO Jack Ma and the Canadian government.

According to the article, the agreements have two aims. First, they provide small and medium enterprises access to China's huge consumer market and promote the culture and tourist destinations of the countries. Second, it will increase Alibaba's revenue, which analysts estimate could reach 15 percent or more.

The signing of the deals is seen as part of Alibaba's broader efforts to expand cross-border shopping as well as in developing its clout with the emerging Chinese middle class. With cross-border shopping, Alibaba will be able to take the necessary growth to validate its valuation.

Research firm eMarketer predicted that more than 15 percent of the Chinese population will make purchases from cross-border shopping sites worth $85.76 billion this year. Last year, nearly $40 billion worth of purchases from these sites were made by Chinese shoppers.

Meanwhile, McKinsey consulting said that a quarter of China's population is expected to shop online by 2020.

To further facilitate cross-border shopping, the Chinese government has reduced postage duty on products. Cross-border shopping spree has been fuelled by concerns on counterfeit products.

The Tmall Global country pavilions feature thirteen other countries, which include the United States - the country with the most popular products on Alibaba's site - and France.

American products are also featured by Alibaba's rival, Amazon.com Inc's China website - Amazon.cn . The site features some popular products which include Costco Wholesale Corporation's mixed nuts and Ben & Jerry's ice cream.