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CHINA

Since April 2009, entry into force in October 2009

Pillar Online sales and transactions  |  Sub-pillar Licensing scheme for e-commerce providers
Postal Law of the People's Republic of China (中华人民共和国邮政法)
According to Art. 51 of the Postal Law of the People's Republic of China, a specific license is needed for express delivery business. It is reported that the administrative licensing for express delivery services is non-transparent and burdensome, preventing competition. It is reported that as companies are required to apply to each city where there is a postal administration department, they need to go through at least 350 review and approval processes if they want to operate at the national level.
Coverage Express delivery services

CHINA

Since August 2018, entry into force in January 2019

Pillar Online sales and transactions  |  Sub-pillar Licensing scheme for e-commerce providers
E-Commerce Law of the People’s Republic of China (中华人民国电子商务法)
China's first comprehensive legislation regulating e-commerce came into effect in January 2019. According to Art. 9, the law applies to all "e-commerce operators," including all individuals and legal entities selling goods and/or providing services on the Internet or other information networks. This includes operators of e-commerce platforms, sellers of goods and services on the e-commerce platforms of others, and those who operate their own websites or through other network services. The law is reported to extend to non-traditional shopping channels, including social media and messaging services, such as WeChat, and streaming sites, such as Douyin. According to Arts. 10-14, all e-commerce operators are obliged to obtain business licenses, register with the tax authorities, and ensure that information on their business and administrative licenses related to their business services is displayed online in a readable form at all times.
Coverage E-Commerce sector

CHINA

Reported in 2020, last reported in 2023

Pillar Online sales and transactions  |  Sub-pillar Restrictions on online payments
Discrimination of foreign payment services
In 2012, a WTO dispute was initiated concerning China's rules governing access to its domestic electronic payments market, which were deemed to unfairly disadvantage foreign credit and debit card issuers. While China stated that it would evaluate the ruling, it has been slow to revise its market-access regulations. Currently, China UnionPay Co. holds a near monopoly on processing yuan-denominated payments, bolstered by its close ties with the Central Bank, which has acted against emerging competitors in a manner that appears to favour UnionPay.
In 2020, Mastercard received approval from the People's Bank of China (PBOC) to begin preparations for establishing a bank card clearing institution in the country, including a joint venture with NetsUnion Clearing Corp., an online payment clearing house with PBOC stakeholders. Similarly, American Express secured preliminary approval in 2018 to undertake clearing services for credit card payments in China, with its application to process domestic payments through a joint venture with LianLian Group accepted in January 2020.
These approvals were part of the US-China phase one trade deal initiated in January 2020, which required Beijing to process applications from payment firms in a timely manner. Specifically, applications to become bank card clearing houses had to be accepted within five business days, with a response required within 90 days. However, this deal expired in December 2021, leaving the future of foreign payment processors in China uncertain.
Despite this situation, in July 2023, Alipay, China’s largest payment app operated by Ant Group, announced that foreign users can now link cards issued by Visa, Mastercard, Diners Club, and Discover to their digital wallets.
Coverage Payment services
Sources

CHINA

Reported in 2021, last reported in 2023

Pillar Online sales and transactions  |  Sub-pillar Threshold for ‘De Minimis’ rule
Limited de minimis threshold
According to Art. 45 of the Regulations of the People's Republic of China on Import and Export Duties (中华人民共和国进出口关税条例), goods within a single consignment, for which the estimated duties do not exceed 50 Yuan (approx. USD 7.5) shall be exempt from duties. In addition, it is reported that China Customs also applies a dedicated e-commerce clearance channel with a goods value de minimis of 5,000 RMB (approx. 700 USD), subject to meeting certain conditions, such as prior carrier and platform registration. Use of this channel is limited to an annual cap of RMB 26,000 (approx. USD 3,600).
Coverage Horizontal

CHINA

Since August 2021, entry into force in November 2021

Pillar Online sales and transactions  |  Sub-pillar Local presence requirements for digital services providers
Personal Information Protection Law (个人信息保护法)
According to Art. 53 of the Personal Information Protection Law, personal information processors outside the territory of the People's Republic of China, as specified in Art. 3, shall set up specialised agencies or designate representatives within the territory of the People's Republic of China to be responsible for handling personal information protection related matters, and shall submit the names, contact information, and other information of the agencies and representatives to the departments with personal information protection duties.
Coverage Horizontal

CHINA

Since June 2017
Since June 2017

Pillar Online sales and transactions  |  Sub-pillar Local presence requirements for digital services providers
Internet News Information Service Management Regulations (互联网新闻信息服务管理规定)

Provisions on Administrative Law Enforcement Procedures for Internet Information Content Management (互联网信息内容管理行政执法程序规定)
According to Art. 5 of the Internet News Information Service Management Regulations, Internet news providers are required to obtain a permit to provide Internet news information services to the social public through Internet websites, application software, forums, blogs, microblogs, public accounts, instant messaging tools, online live streaming, and other such methods. Pursuant to Art. 6 of the regulations, the applicant’s person-in-charge or chief editor must be a Chinese citizen. In addition, the applicant must separately obtain an Internet Information Service license or file procedures with the telecommunications authorities in accordance with the law. In addition, according to Art. 6, to apply for an Internet news information service license, one must have places, facilities, and funds suitable for the service. The Regulations on Administrative Enforcement Procedures for Internet Information Content set out the procedural and administrative processes for the Cyberspace Administration of China to enforce the laws and regulations relating to Internet content.
These provisions broadened the definition of “internet news information services” to “services of collecting, editing, and releasing internet news information; reposting such news information; and providing a platform to spread such news information.” They also broaden the definition of “news information” to include relevant reports and commentaries on politics, the economy, military affairs, foreign affairs, and other public affairs, as well as relevant reports and commentaries on social emergencies.
Coverage News providers
Sources

CHINA

October 1993, entry into force in January 1994, last amended in March 2014

Pillar Online sales and transactions  |  Sub-pillar Framework for consumer protection applicable to online commerce
Law of the People's Republic of China on Protection of Consumer Rights and Interests (消费者权益保护法)
The Chinese consumer protection framework is set out in the Law of the People's Republic of China on Protection of Consumer Rights and Interests. The law applies to all consumers purchasing and using commodities or receiving services for daily consumption and to business operators in their supply of commodities produced and sold by them or services provided to consumers.
Coverage Horizontal

CHINA

N/A

Pillar Online sales and transactions  |  Sub-pillar Ratification of the United Nations (UN) Convention on the Use of Electronic Communications in International Contracts
Lack of ratification of the UN Convention on the Use of Electronic Communications in International Contracts
China has signed but not ratified the United Nations (UN) Convention on the Use of Electronic Communications in International Contracts.
Coverage Horizontal

CHINA

Since 2004

Pillar Online sales and transactions  |  Sub-pillar Adoption of United Nations Commission on International Trade Law (UNCITRAL) Model Law on Electronic Commerce
UNCITRAL Model Law on Electronic Commerce
China has adopted national legislation based on or influenced by the United Nations Commission on International Trade Law (UNCITRAL) Model Law on Electronic Commerce.
Coverage Horizontal

CHINA

N/A

Pillar Online sales and transactions  |  Sub-pillar Adoption of United Nations Commission on International Trade Law (UNCITRAL) Model Law on Electronic Signatures
Lack of adoption of UNCITRAL Model Law on Electronic Signatures
China has not adopted national legislation based on or influenced by the United Nations Commission on International Trade Law (UNCITRAL) Model Law on Electronic Signatures.
Coverage Horizontal

CHINA

Since July 2015

Pillar Technical standards applied to ICT goods and online services  |  Sub-pillar Product screening and additional testing requirements
National Security Law of the People's Republic of China (中华人民国国家安全法)
The National Security Law foresees the rollout of a “secure and controllable” internet infrastructure. Under the National Security Law, the State can establish national security review and oversight management systems and mechanisms, conduct a national security review of foreign commercial investment, special items and technologies, internet information technology produces and services, projects involving national security matters, as well as other major matters and activities, that impact or might impact national security.
Coverage Horizontal

CHINA

Since July 1999
Since October 2019

Pillar Technical standards applied to ICT goods and online services  |  Sub-pillar Product screening and additional testing requirements
Regulation on Commercial Encryption (关于商业加密的规定)

Cryptography Law of the People's Republic of China, 2019 (中华人民共和国密码法, 2019年)
Imported and exported encryption products must be certified by the Office of State Commercial Cryptography Administration (OSCCA). The use of encryption products without OSCCA certification is prohibited, regardless of the public, commercial or individual nature of use. However, it is reported that, in practice, only Chinese or Chinese-owned companies are eligible for OSCCA certification to sell, produce and carry out R&D for encryption technology in China, as well as to gain product licensing. Foreign or foreign-owned companies, even if based in China, are excluded. In 2007, OSCCA started to consider products such as Trusted Platform Module (used in computers) or smartcards (used in banking, insurance, health, transport, etc.) as core encryption products. As a result, such products could no longer be produced or sold by foreign or foreign-invested companies.
Under the Cryptography Law, the import and export of commercial encryption products, technologies and services remain subject to government approval. Commercial encryption products that may affect national security and public interest and have encryption-based protective functions can only be imported under a permit. The Ministry of Commerce, together with the OSCCA and the General Administration of Customs, will issue catalogues of commercial encryption products that are subject to the above import permit and export controls. The requirements above will not apply to commercial encryption used in "products for consumption by the general population". However, the cryptography law does not define the term, leaving it unclear how this will be implemented in practice.
The Cryptography Law has removed the requirement for mandatory certification and has instead established a voluntary certification scheme, which encourages manufacturers to apply to qualified agencies for the testing and certification of their commercial encryption products. The products in the Product Catalogue will no longer be subject to mandatory approval requirements before they are launched. The product catalogue includes smart password keys, smart IC cards, ATM application systems, security authentication, and financial data encryption machines, among others.
Coverage Encryption products

CHINA

Since 2009

Pillar Technical standards applied to ICT goods and online services  |  Sub-pillar Restrictions on encryption standards
WAPI Wireless Local Area Network (WLAN) Standard WAPI (无线局域网 (WLAN) 标准)
It is reported that a locally developed encryption standard (WAPI) is required to be used in all wireless equipment despite the existing international standard IEEE 802.11i.
Coverage Wi-Fi enabled devices

CHINA

Since December 2001, entry into force in January 2002, last amended in April 2022

Pillar Content access  |  Sub-pillar Licensing schemes for digital services and applications
Provisions on Administration of Foreign-Invested Telecommunications Enterprises (外商投资电信企业管理规定)
China's telecom laws require all foreign firms that provide data centres or cloud computing services to enter into a joint venture with a Chinese firm and obtain an Internet data centre license.
Coverage Data centers and cloud storage services

CHINA

Since September 2000, last amended in February 2016
Since March 2016
Since September 2017

Pillar Content access  |  Sub-pillar Licensing schemes for digital services and applications
Telecommunications Regulations of the People’s Republic of China (中华人民共和国电信条例)

Classified Catalogue of Telecommunications Services (电信服务分类目录)

Administrative Measures for the Licensing of Telecommunication Business (电信业务经营许可管理办法)
China requires a supplier to have a basic telecommunications service license to provide VoIP service.
Coverage VoIP services

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