The China E-Commerce Law

A Law to Protect, Not to Prohibit

Effective January 1, 2019, the China E-Commerce Law has received broad attention by e-commerce merchants and sales agents. Legal experts on this area have issued interpretations clarifying that the main purpose of the law is to better regulate the online commerce area, due to its rapid share growth in the Chinese economy in recent years. The law is not intended to prohibit the entire cross border e-commerce business nor the legal oversea procurement activities. 

In fact, the law requires e-commerce platform operators to register as market entities,  with specified responsibilities for products and services provided on their platforms. We foresee that the entire e-commerce market in China will be under better regulations and with clearer responsibility designation to better protect qualified vendors and consumers. At the same time, our fully licensed companies and platform are receiving bigger than ever advantage since the smaller and unregulated players are now being expelled from the market.