(Source: https://pltfrm.com.cn)
Understanding the legal framework for e-commerce in China is vital for international brands aiming to succeed in this competitive market. Here’s a guide to the key legal requirements and considerations for e-commerce businesses operating in China.
- Business Registration and Licensing
E-commerce businesses must complete various registration and licensing requirements to operate legally in China. This includes obtaining a business license, registering with the local tax authority, and securing an online sales permit. For example, a global consumer goods brand entering the Chinese market must obtain a Comprehensive Business License and register with the local e-commerce regulatory body.
- Compliance with E-Commerce Law
China’s E-Commerce Law outlines the legal responsibilities of e-commerce platforms and sellers. This includes ensuring accurate product information, verifying seller identities, and providing transparent return policies. A recent example includes a global retailer that faced regulatory scrutiny for failing to accurately label its products, emphasizing the need for compliance with these laws.
- Consumer Protection Regulations
Consumer protection is a significant aspect of e-commerce regulations in China. The law mandates that businesses implement measures to protect consumer rights, such as accurate product descriptions, transparent pricing, and easy return processes. Recent amendments to the Consumer Protection Law have increased enforcement and penalties for non-compliance, affecting how businesses handle consumer interactions.
- Data Privacy and Cybersecurity Requirements
Compliance with China’s Cybersecurity Law is essential for protecting consumer data and ensuring cybersecurity. This includes implementing data protection measures and adhering to data localization requirements. A notable case in 2024 involved a global e-commerce platform facing legal challenges due to inadequate data protection practices, highlighting the importance of robust cybersecurity measures.
Case Study: Navigating Regulatory Changes for a 2024 E-Commerce Expansion
A global electronics company expanding its e-commerce operations into China encountered regulatory challenges related to business licensing, consumer protection, and data privacy. By consulting with legal experts and adapting their operations to meet local requirements, the company successfully overcame these challenges and achieved a successful market launch.
PLTFRM is an international brand consulting agency that works with companies such as Red, Tiktok, Tmall, Baidu, and other well-known Chinese internet e-commerce platforms. We have been working with Chile Cherries for many years, reaching Chinese consumers in depth through different platforms and realizing that Chile Cherries exports in China account for 97% of the total exports in Asia. Contact us and we will help you find the best China e-commerce platform for you. Search pltfrm for a free consultation！ info@pltfrm.cn
