This law is the first electronic commerce law in China. 10 November 2020. The ECL will undoubtedly become the main legislation regulating e-commerce in China, and it will be crucial for all companies active in this sector to be compliant to this law. Introduction The vigorous development of e-commerce in China in the past 15 years has made the sector hugely successful, but also slightly chaotic. The new law will extend legal protection for consumers and brand owners and will arm the fight against the country’s reputation as a source of fake goods.. As such, cross-border e-commerce has also grown tremendously with countries such as Russia becoming the biggest destination for products sold from China via e-commerce. Republic of China. On January 1, 2019, China’s new e-commerce law took effect. Finally, Chinese products have always been cost-competitive but in recent years have also become known for their appealing design and innovative features. While official data shows a sharp rise in complaints lodged related to cross-border e-commerce. Photo: Xinhua. As Chinese e-commerce platforms such as Alibaba, Taobao, JD.com, and others are now among the world’s largest e-commerce platforms handling billions of dollars of transactions each year, this Law has been widely called for by different stakeholders to regulate the rapidly growing e-commerce market in China. As new e-commerce laws were passed by the National People’s Congress this late August and will become effective in 2019, stricter regulation may lead to a fading market dominance of Taobao, now the largest business-to-customer e-commerce service provider. The e-commerce sales in China are expected to hit a new high of 33.6 percent of all retail sales in 2019 as compared to the 23.8 percent retail sales in 2017. China will implement a new e-commerce law from 1 January 2019 with the intent to further enhance legal protection for consumers and brands, especially in relation to curbing the counterfeit goods market, for which China has gained an unhealthy reputation. Articles 41 to 45 specifically address intellectual property. New China e-commerce law from Intellectual Property perspective. Gauging substantive similarity in software copyright disputes . While establishing a set of laws and regulations, aiming to regulate the vast online retailing business and to protect the rights of consumers and intellectual property is a step in the right direction, there is clearly room for improvements. In June 2018, China’s internet userbase surpassed the 800 million mark,[1] making it the world’s biggest internet userbase holder and e-commerce market potential in the world. Selling Your Products on Chinese E-Commerce Sites. China Electronic Commerce Law was adopted at the fifth meeting of the Standing Committee of the 13th National People's Congress on Aug 31, 2008. As part of its program designed to modernize the Chinese economy, the State Council recently issued a series of opinions on development of e-commerce in China. With China accounting for half of the e-commerce transactions in the world, non-Chinese companies are enjoying some of the spoils. As of January 1 st, 2019, China will implement a new e-commerce law further regulating the sale of products for international retailers. The law is China’s first comprehensive legislation governing the field of e-commerce and will take effect on 1 January 2019. I was asked to write this article to explain the implications (hence the title) and the practicalities of China’s new e-commerce law. China’s legislation is struggling to keep up with the rapid market growth, especially with reference to consumer protection and supervision. These new laws are set to strengthen protection for consumers and retailers, as the Chinese government works to change the countries reputation as a source of fake goods. Read More. A copy of China's E-Commerce Law. The real impact of this regulation will depend on how and to which extent it is enforced in the coming years. E-commerce Law. By Chen Jing, Commerce & Finance Law Offices. Headline From China . The impact of the E-commerce market on social life and the current economy cannot be denied. Article 2 This Law shall apply to e-commerce activities in the People’s Republic of China.E-commerce referred to in this Law shall mean business activities of sale of goods or provision of services through Internet and other information network. The timing is important as e-commerce sales accounted for 23.8 percent of all retail sales in China in 2017, and is projected to reach 33.6 percent by 2019. LATEST ON VANTAGE ASIA. China’s new E-commerce Law (which entered into effect on 1 January 2019) regulates a wide array of matters, including antitrust, data protection, consumer protection, payment and delivery services, among others. China’s new E-Commerce Law has been in effect for a few months now and in this article I discuss its expected impact on various e-commerce players. (China Daily) Updated : 2019-03-15. The whole content includes seven chapters and eighty-nine articles. While giants like Alibaba and JD.com still control 85 percent of the market, platforms like WeChat, Duovin and Pinduoduo, where small merchants as well as larger companies can list their wares, are quickly gaining ground. In fact, The Diplomat claims the e-commerce law is a mere codification of an already existing law established by China’s courts. The E-commerce Law (“the Law”) is effective on 1 January, 2019. The underlying concept is that e-commerce should be used to push China towards developing a consumer economy. /VCG Photo. "E-Commerce" as used in this Law refers to business activities that sell merchandise or provide services on information networks such as the internet. E-commerce and e-commerce operators. AmCham Shanghai Insight Magazine Cover March/April 2019. China’s most significant step, however, was the announcement of the e-commerce law in August 2018. This comprehensive law is intended to apply to all e-commerce activities. China’s e-commerce laws are constantly changing. China’s e-commerce law: A sign of the (growing) times. Therefore, China will implement its first ever comprehensive E-Commerce Law (the “ECL”) as of 1 January 2019. E-commerce operators in China have been under intense scrutiny following media reports of counterfeits sold on the online discount platform operated by Pinduoduo, Inc., the Shanghai-based e-commerce platform recently listed on Nasdaq. Print Large Medium Small. The Chinese government’s decision to lift purchase limits on the cross-border e-commerce indicates a strong outlook in 2019. The limit on purchases has also been raised from RMB2,000 to RMB5,000 … It will come into effect on Jan 1, 2019. Chinese Whispers: Is the Daigou Business Dying, and More . China’s legislative body passed the country’s first e-commerce law on August 31 to “protect legal rights of all parties” and “maintain the market order”, with a focus on consumers’ rights.Xinhua is publishing regular updates about the law with the latest about how e-commerce platforms can’t delete negative reviews on its products or it can face fines up to RMB 500,000. However this could trigger some practical implications international operations should pay special attention to. It came into effect on January 1 st 2019, (Source: FBIC Group); the law focuses on the practical aspects of developing e-commerce and features the following key areas of change. china e-commerce law. The new e-commerce law. The Law will regulate typical issues related to e-commerce, including contract contents, logistics, operation entities, operation conducts, e-payments, etc. Chinese E-Commerce Law was passed by the Standing Committee of National People's Congress on August 31, 2018 and is to take effect on January 1, 2019. Again, China takes a very prag­matic approach to house all these topics within the E-commerce Law. 17. Therefore, China will implement its first ever comprehensive E-Commerce Law (the “ECL”) as of 1 January 2019. 2019 begins China’s era of compliance China's Year of the Pig is ringing in a new 'Era of Compliance' 27 March 2019. 90,300 Billion USD). China’s New E-Commerce Law: Bad for Daigou, Good for Cross-Border E-Commerce? China’s new e-commerce law comes amid the country’s rapid development into the world’s largest e-commerce market, with estimated sales of US$1.53 trillion in 2018. The law's emphasis on regulating small individual sellers may make life harder for cross-border daigou sellers. The E-Commerce Law of the People's Republic of China(E-commerce Law) was enacted on August 31, 2018. Where laws or administrative regulations have provisions on the sales of merchandise or the provision of services, apply those provisions. E-Commerce . Azoya Consulting | Share. For instance, the amount at which cross-border ecommerce transactions are exempted from import duties whereby customers only have to pay 70% of the consumption tax and VAT. Oct. China is by far the world's largest e-commerce market in the world. AmCham Shanghai recently published an article I wrote on China’s new E-Commerce Law, titled,Implications of China’s E-Commerce Law, and I urge you to read it. China will also need to monitor a growing number of new e-commerce platforms, including social media and discount and group-buying sites. Yiling Pan | Share. Intelligence report. However, the law’s provisions on IP protection seem to have attracted the most attention – both positive and negative. On August 31st, the Chinese government passed a comprehensive e-commerce law that will come into effect on January 1st, 2019. Make your nominations now for the Philippines Law Firm Awards. These developments … Where the laws, administrative regulations stipulate on sale of goods or provision of services, such provisions shall prevail. The new regulation however contains a lot of ambiguous points such as the “low-value transactions” threshold. The 3 Surprising Predictions for China Cross-Border E-Commerce in 2019. 1. China's cross-border e-commerce trade saw its turnover rise 80.6 percent from 2016 to 90.24 billion yuan last year. Tag: China’s E-Commerce Law. Milk, milk powder and other foods, diapers, health care products and cosmetics are the goods involved in the most complaints. In 2017 it saw its online retail sales grow 32 % to reach 7.18 trillion Yuan (Aprox. Some examples of important issues covered by this law are business registration and taxation and keeping records, as well as issues like e-contracts and e-payments, data protection, cross-border commerce, and penalties. As the country’s e-commerce market grows at an overwhelming rate, so does the need for stricter market regulation. Date:2018-09-28 by Azoya Consulting. Towards this increasingly flourishing e-commerce market, China adopts an e-commerce law aimed at improving regulation of the market. A user of Pinduoduo shows the interface of the app in Beijing. The E-Commerce Law defines “electronic commerce” as business activities related to selling goods and services via information networks such as the Internet. According to Alibaba, U.S. companies sold $5.4 billion in goods on its sites during the recent Singles’ Day shopathon. A new law was passed on August 31, 2018. On August 31, 2018, the Fifth Session of the Standing Committee of the 13th National People's Congress of China (NPCC) passed the "E-commerce Law of China", which will come into force on January 1, 2019. E-commerce in China has grown to about 19% of the total USD 5.8 trillion retail sales. Despite the daigou channel becoming a less attractive option for consumers, the new law does offer some benefits for shoppers in China. 0. One of the hottest topics is e-commerce platform operators (EPOs) liability for third-party patent infringement. The new e-commerce law of China is a step forward toward a more regulated and stable environment for China’s e-commerce development. China will implement a new e-commerce law from January 1, 2019. 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