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Cross-border E-Commerce Regulations

China issued a notice on the relevant cross-border e-commerce system recently, requiring that the behaviour of cross-border e-commerce operators be regulated and information protection, data security management system be established and strengthen the normative guidance for the development and application of new technologies such as big data, cloud computing and AI, etc.

You can find the complete notice (in Chinese) - here.

In recent years, cross-border e-commerce has maintained rapid growth. The Chinese government emphasises great importance to and vigorously supports the development of relevant businesses. But there is still a need for improvement on several fronts, the government has identified 3 key areas.

  • Legal system - There are no specific laws and regulations in the field of cross-border e-commerce in China, and the legal definition and responsibility division of cross-border e-commerce is not clear. Many brands are afraid of the risks of policies and regulations and dare not invest heavily.

  • Management system - access to export tax rebates, product quality and safety in the enterprise, identity information sharing, foreign exchange receipt and payment management, and other related to import and export regulations.

  • Exchange and return system - Although the supervision scheme on the return of cross-border e-commerce export commodities has been implemented in 2020, there is still much room for improvement in the field of cross-border e-commerce export. The difficulty of returning and exchanging goods directly reflects the difficulties of cross-border e-commerce platforms in implementing the return system.

In 2019, the scale of China's cross-border e-commerce market reached 1.05 billion RMB, an increase of 16.66% from the 900 million yuan in 2018. In terms of the structure of imports and exports, cross-border e-commerce exports accounted for 76.5% in 2019, and imports accounted for 23.5%.

Cross-border e-commerce has increasingly higher requirements for capital, technology and services, and the industry threshold and operational difficulty have increased a lot. Coupled with the new rules that China has just implemented, it will be even more difficult for brand owners. To this end, we have customized services specifically for Direct-To-Consumer brands. ChinaWeSales (CWS) is a complete end-to-end e-commerce solution for brands that are trying to enter China with no prior sales or setup. Together with our partners, we provide technical mini-program creation & maintenance, logistic solution and payment processing.

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