endobj %���� 0000002102 00000 n Pursuant to Article 14 of the ECL, e-commerce operators shall issue proof of purchase of goods or services such as hard copy fapiao or electronic fapiao (“fapiao”is the Chinese official tax invoice which is an important means for tax authorities to manage and supervise taxation) and file tax returns. A woman in Beijing shops online at the Taobao website on Feb 5, 2008. II. 0000015048 00000 n 0000014838 00000 n By means of making the world a global village with an ease to do business, e-commerce trading has gained ground. The goal of the Draft is to regulate China’s burgeoning e-commerce sector, and 0000014583 00000 n China issues its second Draft E-Commerce Law December 2017 1 On 7 November 2017, the Standing Committee of the National People’s Congress ("NPC") published the second draft of the E-commerce Law (电子商务法（草案二次审议稿）, "Draft"). 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. The implementation of these new regulations commenced on January 1, 20… The new law builds upon earlier reforms of China's legal system. 0000001220 00000 n 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. This framework is broad in scope and will apply in respect of all e-commerce activities, both domestic and cross border (CBEC). One important feature of the new law is the requirement that online businesses must register their business and acquire all necessary licenses regulating particular activities, such as sale of therapeutic drugs. 0000003801 00000 n 0000006989 00000 n + Add to Binder View PDF. The growth of China’s e-commerce sector has driven the government to further regulate the activities of e-commerce operators. Where laws or administrative regulations have provisions on the sales of merchandise or the provision of services, apply those provisions. xref 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. 0000000709 00000 n China's cross-border e-commerce trade saw its turnover rise 80.6 percent from 2016 to 90.24 billion yuan last year. Review of promotion tools Due to the huge potentials provided by cross border e-commerce. GENERAL PROVISIONS UNDER THE CHINESE LEGAL REGIME Although the detailed implementation guidance for E-commerce is <>/ExtGState<>/XObject<>/ProcSet[/PDF/Text/ImageB/ImageC/ImageI] >>/MediaBox[ 0 0 595.32 842.04] /Contents 4 0 R/Group<>/Tabs/S/StructParents 0>> ;|.b���L For purposes of this Law, “e-commerce” means transactions of goods or services through the Internet or other information networks. Dr. Michael Tan and Lynn Zhao, Partner and Associate respectively at Taylor Wessing LLP, examine the requirements of the E-Commerce Law and discuss its implications for businesses. The e-commerce law mainly applies to the following three types of operators: 1. X!�J�����/xV��5�RVX��HX�.���dbɡ)�a�4wq^%�Zݤd�Bw�R���`��q1V&�;��5�d�v�������I)Te\o���9�V�sXʽ�W��.�Tu��`ޡY�����zy�v����!K��և��{�=��V���!R59U� p0�����c�bH��b6��P䮦3�3#�8�G��{&"Xs2�b-�zrǍR��J���|�����'�h`00R�L{���E����V�@7�5�V\'�b���#K�qOG)ZZ~x�� M|�k��Jn��Ă����Jv����u?�>���L���TO~�i�jZ˅��7�� Q�Ka)Xǽ�}�ˎ[����Fp2�}.�z����N�t7s�?O�e��Fc��^+�R�d�иn ����5�a ��N `&���i�l�lVX�� �n٬:����Ƨ4�e�y�-�@y\4xv��,W6��. China is one of the countries that has embraced e-commerce. startxref x�bb�g`b``Ń3� ����C/> 2Q� 4 0 obj China has defined three types of e-commerce operators in the legislation: However, the law’s provisions on IP protection seem to have attracted the most attention – both positive and negative. 0000004295 00000 n & S���&7̜>���r��:��� i-�,��J�2H.fY�l�cu1�>��z�x.6�t��� �NY00 China Retail & E-commerce Quarterly Issue 10 | May 2019 0 China Retail & E-commerce Quarterly Asia Distribution and Retail Issue 10 | May 2019 . The new e-commerce law will come into effect from 1 January 2019 and will cover e-commerce operators (including registration of Article 2 This Law applies to the e-commerce activities within the mainland territory of the People's Republic of China. <> The new e-commerce law of China is a step forward toward a more regulated and stable environment for China’s e-commerce development. 0000001035 00000 n (MARK RALSTON / AFP) BEIJING - China's top legislators on Friday passed an e-commerce law aimed at improving regulation over the flourishing market.. This could all change dramatically with China’s new e-commerce law, which holds the e-commerce platform operators jointly liable with the individual sellers for infringements. Market overview ..... 4 1. In 2018, the value of China’s cross-border e-commerce trade in goods was around 134.7 billion RMB, of which 78.58 billion RMB was from import. The new law will enter into force on 1 January 2019. 381 0 obj <> endobj E-commerce, US$535 bn Tencent – Social media / Gaming, US$499 bn JD – E-commerce, US$54 bn Ping An – Financial conglomerate, bn Leading Life and P&C Insurance Lufax: 38 OC: 7.5 Doctor: 4.9 HK: 8.8 The draft of China's first e-commerce law will be reviewed during the 25th session of the 12th National People's Congress Standing Committee held from Dec 19 to 25 in Beijing. Republic of China. <>>> 0000001724 00000 n For purposes of this Law, “e-commerce” means transactions of goods or services through the Internet or other information networks. An examp… While official data shows a sharp rise in complaints lodged related to cross-border e-commerce. The next chapter, eyond hina, sketches other e -commerce … 0000003267 00000 n China issues its second Draft E-Commerce Law December 2017 1 On 7 November 2017, the Standing Committee of the National People’s Congress ("NPC") published the second draft of the E-commerce Law (电子商务法（草案二次审议稿）, "Draft"). 27, 2018) NPCSC Solicits Public Opinions on Draft E-Commerce Law, Amendment to Rural Land Contract Law & Vessel Tonnage Tax Law (Nov. 7, 2017) In fact, The Diplomat claims the e-commerce law is a mere codification of an already existing law established by China’s courts. Art. 3 0 obj A New China E-Commerce Law is Coming into Effect in January 2019 Reading Time: 4 minutes 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. Although Article 2 of the law states that it applies to e-commerce activities within the territory of the PRC, the various connection factors (e.g. 11, 2018) NPC Standing Committee Releases 2018 Legislative Plan (Apr. The President of the People's Republic of China, Xi Jinping, promulgated, on 31 August 2018, the Electronic Commerce Law of the People's Republic of China 2018 ('the E-commerce Law'). Platform operators: Any legal persons or unincorporated organizations that provide a space for digital business, transaction matching, information release, and other services to facilitate parties in an e-commerce transaction. 0000000016 00000 n 0000002020 00000 n passed new law providing a framework in respect of e-commerce in China. China’s most significant step, however, was the announcement of the e-commerce law in August 2018. The breath-taking speed of development has left law makers scrambling to regulate the booming e-commerce industry. The new regulation however contains a lot of ambiguous points such as the “low-value transactions” threshold. Milk, milk powder and other foods, diapers, health care products and cosmetics are the goods involved in the most complaints. Chapter 5 of the E-Commerce Law, Promotion of E-Commerce, provides that China shall promote cross-border e-commerce development, establish and improve the management systems of customs, … 0000001535 00000 n Currently, Chinese cross-border e-commerce is growing at an estimated annual rate of 20-30%. endstream endobj 382 0 obj <>/Metadata 40 0 R/PieceInfo<>>>/Pages 37 0 R/PageLayout/OneColumn/OCProperties<>/OCGs[383 0 R]>>/StructTreeRoot 42 0 R/Type/Catalog/LastModified(D:20170113154041)/PageLabels 35 0 R>> endobj 383 0 obj <. 24. The e-commerce law applies to all e-commerce business activities within China’s borders, therefore including the sale of products on a Chinese e-commerce platform by a … Law • Further, if an identity provider makes an incorrect online statement to a relying party about the identity of a subject, applicable law ... e-Commerce Platforms, outside EU, therefore needs compliance with GDPR Other jurisdictions (countries) are also likely to enact data protection laws. 381 20 NPCSC Session Watch: E-Commerce Law, Judicial Reform & Militarized China Coast Guard (Jun. A game changer? 0000002852 00000 n In fact, The Diplomat claims the e-commerce law is a mere codification of an already existing law established by China’s courts. 0000002636 00000 n Article 19 In case of tie-in sale of goods or service, e-commerce operators shall call consumers’ attention to that in a conspicuous way, and shall not make the tied goods or services as an option of default consent. It is of no surprise that the Chinese government has implemented a new regulation on cross-border e-commerce. Therefore, China will implement its first ever comprehensive E-Commerce Law (the “ECL”) as of 1 January 2019. 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. Article 3 . For example, article 26 of the E-Commerce Law requires e-commerce operators that engage in cross-border e-commerce to comply with China’s import and export laws and regulations. 1 0 obj x��[�S�8~�L���ә(�-��aR�ѡ�����CJ���������v �" �a0ز���jw�Zۃ�E>���r��78������7�yp��y6�2���>����(�f��b�5Ǣ�,�Nj�}r�zH��ve�ǖFt��$V�2E�n��+�v;������.������pbM�"���9Txsa��-�I��U\^��v>G���\��v���?�������4MK�����Ί�2���nx���(�&�8�|��0�&�X����ѯQ�PJ5 �*�|{J���_?���9%41Xi�����%fkV�%V���(W[�R�Oԧ�Rk�1����O�II)���h��i���Tm�N�MJtjkFq+��q�����=|�o���-i��#4X���N�Ŋj�{,�}`a�$�>��.�^0��i`0.�P��b� ��L�'����� ?��>��_}�: passed new law providing a framework in respect of e-commerce in China. The E-commerce Law of the People's Republic of China will enter into force as of January 1, 2019.The E-commerce Law of the People's Republic of China contains the following sections: General Provisions, E-commerce Operators, Establishment and Fulfilment of E-commerce Contracts, Settlement of E-commerce Disputes, Promotion of E-commerce, Legal Liability and Supplementary Provisions. <> Chapter 1 The e-commerce market in China 1 Market size 3 Overview of e-commerce platforms and service providers in China 8 The role of e-commerce in inclusive development in China 10 Public and private support for rural development through e-commerce 12 Chapter 2 What SMEs need to engage in e-commerce with China 15 Regulatory requirements 15 0000004045 00000 n x�b```b``������-��ǀ |@1V �x X�f���#A�@Ρ� 0 promotion and performance within China, ICP filing re­quirements) will bring cross-border delivery models closer within reach of the Chinese authorities. endobj trailer E-commerce is playing an increasingly significant role in cross-border trade in goods and services. Please see our … This framework is broad in scope and will apply in respect of all e-commerce activities, both domestic and cross border (CBEC). 0000002774 00000 n E-commerce Law of the People’s Republic of China (Adopted at the 5th Session of the Standing Committee of the Thirteenth National People’s Congress of the People’s Republic of China on 31 August 2018) C o n t en t s Chapter I General Provisions Chapter II E-commerce … ��=Ck��b�='���q���1�=ƄbLYƴ�C��*.ʘ��si��R�W��^Y�����^U7�3�߽�/�����)5�&{%6_�KTҌWճe��*z@�ح�����v���E���p��;*V"���ަ�KA����ع. ���g�z*������:#������mtv�K"r�%�}`���#(g��C�#��a`�W\Sa}D��I4���}`�TVSf|�k��[_��aq�� Article 3 . %%EOF of China or in which domestic e-commerce business entities or consumers participate in. A major provision under the new law is the clarification of the types of businesses that will fall under its jurisdiction. E-Commerce Law of the People’s Republic of China ... comply with the relevant provisions of the Advertisement Law of the People’s Republic of China. On January 1, 2019, China's new e-commerce law took effect. E-Commerce Laws and Practices in China 221 Signatures in 2001.7 The terms of the Electronic Signatures Law of China are substantially the same as those of the UNCITRAL Model Law on Electronic Signatures. <<5B8F03FA5FEEDB43BE71808ACBB23057>]>> stream %PDF-1.4 %���� China Retail & E-commerce Quarterly Issue 10 | May 2019 1 Table of Contents I. 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. In less than a decade, China has become the largest e-commerce market in the world, accounting for over 40% of global e-commerce according to a recent report by McKinsey. After nearly two years of discussion, the Standing Committee of … 0000002057 00000 n Retail sales up by 8.3% yoy in 1Q19.....4 2. endstream endobj 399 0 obj <>/Size 381/Type/XRef>>stream China will also need to monitor a growing number of new e-commerce platforms, including social media and discount and group-buying sites. 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. e-commerce, to regulate e-commerce conduct, to preserve the order of the marketplace, and to promote the sustainable and healthy development of e-commerce. endobj "E-Commerce" as used in this Law refers to business activities that sell merchandise or provide services on information networks such as the internet. ))0�fۅ'`K��V��,�g6 - �B`��,004�h�ªX��a|p�2�C��~27�9@Vf`�pf ��-�30|����>�^��Qh#� �2AJ China enacts first e-commerce law September 2018 1 Introduction On 31 August 2018, the Standing Committee of the National People's Congress ("NPC") passed China's first law regulating electronic commerce, the People's Republic of China e-Commerce Law (“e-Commerce Law”). 400 0 obj <>stream In less than a decade, China has become the largest e-commerce market in the world, accounting for over 40% of global e-commerce according to a … It was adopted after a fourth reading at the bimonthly session of the Standing Committee of the National People's Congress that ended Friday. In chapter four the updated rules & regulations applicable to foreign entities engaging in cross-border e-commerce activities are explained, among which the previously mentioned E-Commerce Law. Effective January 1 this year, the new law applies to e-commerce marketplaces like Taobao, WeChat, as well as any websites where goods are sold. 42 of the E-commerce Law states that “if an IP right holder believes that an Operator on an E-commerce Platform has infringed its IP rights, the IP right holder can notify and request the Platform Operator to take necessary steps, such as to delete or screen information about the alleged infringement, disconnect the relevant webpages, or end the relevant transactions and services. with e-commerce, in China. Under China’s new e-commerce law, the definition of e-commerce operators expands to smaller players like micro-stores, as well as third-party retailers who do business through online channels like WeChat. 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