As part of China’s aim of modernization in terms of economy, their e-commerce laws have recently changed and are constantly evolving. China continues to push development of a consumer economy oriented around growing levels if e-commerce.
The government recently developed guiding principles on promoting development of cross-border e-commerce in the country. For foreign investors aiming to establish or expand their online business in China, this guiding opinion is extremely critical and so it is advisable to get the assistance of professional China lawyers specializing in foreign trade and business.
There are two primary themes underlying the new China law on e-commerce: 1. E-commerce in China has to be done under the Chinese law. That is, it has to be under firm control of the government and 2. Chinese companies shall be the only ones that will handle Chinese e-commerce with foreign companies not even mentioned in the new guiding opinion.
On another note, here are some interesting facts about cross border e-commerce in China that will be helpful to know:
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1.
China – Biggest e-Commerce Market
Because Western traditional marketplaces are well established, China is considered the largest e-commerce market in the world; outperforming the US. Chinese consumers increasingly turn to e-commerce to obtain products which are not easily available in traditional stores. China’s aim of developing consumer market with e-commerce is on the right track and the country boasts of an explosive rate in cross-border trading and shopping.
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Customer Service Team
Another thing that Chinese e-commerce boasts is their customer service. China e-commerce customer service representatives can be expected to reply to consumers immediately. This is because the Chinese consider customer service to be a huge part in their sales. If customer representatives do not respond quickly, chances are consumers take their business elsewhere. E-commerce competition is tough and just a click.
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3.
Local Payment Method Preferences
International credit card payments are not popular in China. There are only a meager percentage of online shoppers that use international card payment servicers such as Visa or MasterCard. This is because most consumers use local payment methods such as Alipay, Chinapay and Unionpay cards. On that note, it is wise for foreign traders to offer their items using local payment methods.
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4.
Going Mobile is the Trend
China e-commerce is most thriving using mobile devices in the country. Those wishing to sell online invest in improving their software. It is projected that online retail sales will continue to grow as the use of mobile devices becomes even more widespread.
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China e-Commerce Legislation
The implementing rules and regulations for Chinese e-commerce are constantly changing. The new guiding opinion means it will become more difficult at least in the short term for foreign companies to effectively navigate relevant regulations.
Before you even spend precious time and effort in establishing a new China company, foreign businesses seeking to profit from the growing trend toward e-commerce in China would be wise to first contacting a China law firm.