China, being the most populous country in the entire world, has developed a highly effective E-commerce system which differs many ways from those in Europe and North America. Being an important part of the modern Chinese economy, E-commerce is aiding in propelling China into an information based society. This not only creates value for the operators but also fits well with the major structural changes required in Chinese economy. Recognizing the importance of E-commerce, the Chinese government has promoted the use of computers and accentuated the advancement of information resources.
Let’s take a look at trending E-commerce laws and regulations in China.
The first and the foremost trend in China internet and E-commerce is the regulation of internet information service providers. It is imperative that Foreign Invested Enterprise internet information services providers comply with the Chinese regulations of the internet when operating their own websites. The content on the website requires general approval by relevant authorities and significant changes in content requires additional approvals. Internet information services providers are responsible for monitoring the content of their web-sites to ensure that they do not contain prohibited material.
The payment procedure through E-commerce websites is centrally monitored to The current system of payment via E-commerce platforms is essentially unmonitored, but Foreign Investors should be aware of the future potential for enactment of a centrally monitored system of credit purchases to promote compliance with central government laws and regulations.
For the import consumer goods via E-commerce platforms, the China government plans to implement a consolidated reporting, shipping and delivery system. All other operations will be excluded.
A feature if many E-commerce websites is the advertising revenue achieved through third party advertisements on the E-commerce platform. Such advertising is expected to steadily increase. The Advertising Law of China requires these companies to have a license for advertising and to verify the content for accuracy. Fines may be imposed in the case of untruthful advertisements.
Finally it is important to remember that China Product Quality laws clearly apply to goods sold through a website in China. Chinese legal standards regarding labeling, performance, and health, and product safety must be followed.