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Introduction
Staying competitive in China’s bustling digital marketplace requires mastering the updated fair competition rules to protect your brand and foster sustainable growth. This article uncovers the revised anti-unfair competition measures, providing practical insights for overseas brands to navigate digital pitfalls and leverage opportunities. Learn how these changes promote transparency and innovation, empowering your localization efforts for stronger market positioning.
- Prohibitions on Digital Misconduct
1.1 Data Misappropriation Controls Banning unauthorized data scraping and technical circumvention protects intellectual assets in e-commerce, requiring brands to verify AI and intelligence tool sources. Overseas companies should audit their data practices to ensure compliance, avoiding fines up to RMB 5 million. This fosters a level playing field, allowing focus on genuine innovation rather than defensive measures.
1.2 Malicious Acts Prevention Prohibiting fake orders, fabricated reviews, and bulk returns curbs manipulative practices that distort market dynamics. Brands must implement monitoring systems to detect and report such activities on platforms. Integrating SaaS analytics can help maintain authenticity, enhancing consumer trust and long-term loyalty. - Platform Abuse Regulations
2.1 Restrictions on Coercive Practices Platforms are barred from forcing merchants into below-cost sales or rival restrictions, addressing algorithmic pressure and discrimination. Overseas brands should review contracts for unfair terms, negotiating balanced agreements. This shift encourages diverse partnerships, boosting visibility across multiple channels.
2.2 Fair Rule Establishment Mandating platforms to create transparent rules, complaint mechanisms, and reporting protocols ensures accountability. Brands can use these systems to resolve disputes swiftly, maintaining operational continuity. SaaS tools for compliance monitoring can automate rule adherence, streamlining localization processes. - Bribery and Liability Enhancements
3.1 Dual-Target Bribery Rules Both parties in bribery transactions, including intermediaries, face liability, with fines up to RMB 5 million for corporations. Executives must enforce strict anti-bribery policies to avoid personal penalties of up to RMB 1 million. Training programs can mitigate risks, preserving brand integrity in competitive markets.
3.2 Executive Personal Accountability Legal representatives and key personnel are held personally liable for unfair practices, even without direct knowledge. This necessitates robust internal controls and audits for overseas operations. Utilizing consulting services can guide policy development, ensuring global alignment with Chinese standards. - Extraterritorial Jurisdiction
4.1 Global Conduct Oversight Acts outside China disrupting its market are now enforceable, covering e-commerce and data activities worldwide. Brands with international operations must assess cross-border impacts to avoid violations. Proactive legal reviews can prevent extraterritorial penalties, safeguarding worldwide strategies.
4.2 Abuse of Advantageous Position Large firms cannot impose unreasonable terms like delayed payments on SMEs, protecting fair dealings. Overseas brands should evaluate supplier relationships for equity, adjusting terms accordingly. This promotes collaborative ecosystems, enhancing supply chain resilience. - Key Success Factors in Fair Competition
5.1 Enforcement and Penalty Awareness Understanding increased fines and multi-level liabilities drives proactive compliance cultures. Regular updates via industry reports keep strategies current. SaaS platforms for risk assessment can identify vulnerabilities early.
5.2 Innovation Through Transparency Embracing transparent practices unlocks innovation, turning regulations into growth catalysts. Feedback from market stakeholders refines approaches. Partnering with localization experts amplifies these benefits.
Case Study: European Fashion Brand’s Response to Competition Reforms
A prominent European fashion house encountered platform coercion issues under the 2025 AUCL revisions, where algorithmic biases limited their visibility. By adopting SaaS-driven analytics to monitor and report unfair practices, they negotiated fairer terms with platforms like JD.com, resulting in a 30% sales uplift and stronger brand protection.
Winning fair competition strategies in China’s digital marketplace depend on vigilant digital conduct, anti-bribery measures, and global awareness. By fusing regulatory compliance with strategic innovation, overseas brands can secure enduring success.
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
