CHINA
Since December 2001, entry into force in January 2002, last amended in April 2022
Since December 2021, entry into force in January 2022
Since December 2021, entry into force in January 2022
Pillar Foreign Direct Investment (FDI) in sectors relevant to digital trade |
Indicator Maximum foreign equity share
Provisions on Administration of Foreign-Invested Telecommunications Enterprises (外商投资电信企业管理规定)
Special Management Measures for Foreign Investment Access (Negative List) (2021 Edition) (外商投资准入特别管理措施 (负面清单) (2021 年版)
Special Management Measures for Foreign Investment Access (Negative List) (2021 Edition) (外商投资准入特别管理措施 (负面清单) (2021 年版)
According to Art. 6 of the Provisions on Administration of Foreign-Invested Telecommunications Enterprises and Section VII of the Negative List 2021, for foreign-funded telecommunications enterprises operating value-added telecommunications services (including online database storing and searching; electronic data exchange; online data processing and transactions processing; domestic multiparty communication services; IP-VPN; ISP; ICP and video teleconferencing), the proportion of foreign investors' capital contribution in the enterprise shall not exceed 50% in the end. An exception applies to e-commerce, for which 100% foreign equity and ownership is allowed. Furthermore, the proportion of capital contribution between Chinese investors and foreign investors in foreign-invested telecommunications enterprises in different periods shall be determined by the industry and information technology department of the State Council in accordance with relevant regulations.
In addition, according to Art. 5 of the Provisions on Administration of Foreign-Invested Telecommunications Enterprises, if the enterprise is engaged in the basic telecom business within a province, autonomous region, or municipality directly under the Central Government, it shall have a registered capital of not less than 100 million yuan (approx. USD 14,000,000). However, if the enterprise is engaged in the basic telecom business nationwide or beyond a single province, autonomous region, or municipality directly under the Central Government, it shall have a registered capital of not less than 1 billion yuan (approx. USD 140,000,000).
Under the Special Management Measures for Foreign Investment Access (Negative List) 2021, authorities must treat foreign investors with the same degree of accommodation as domestic investors unless set out otherwise in the negative list. While no caps have been set out in the negative list with regard to basic telecommunication services, the negative list provides that the basic telecommunication business must be controlled by the Chinese party.
In addition, according to Art. 5 of the Provisions on Administration of Foreign-Invested Telecommunications Enterprises, if the enterprise is engaged in the basic telecom business within a province, autonomous region, or municipality directly under the Central Government, it shall have a registered capital of not less than 100 million yuan (approx. USD 14,000,000). However, if the enterprise is engaged in the basic telecom business nationwide or beyond a single province, autonomous region, or municipality directly under the Central Government, it shall have a registered capital of not less than 1 billion yuan (approx. USD 140,000,000).
Under the Special Management Measures for Foreign Investment Access (Negative List) 2021, authorities must treat foreign investors with the same degree of accommodation as domestic investors unless set out otherwise in the negative list. While no caps have been set out in the negative list with regard to basic telecommunication services, the negative list provides that the basic telecommunication business must be controlled by the Chinese party.
Coverage Basic-telecommunication services
Sources
- https://web.archive.org/web/20220924052405/http://www.gov.cn/gongbao/content/2016/content_5139480.htm
- https://web.archive.org/web/20231108181652/https://wipolex-res.wipo.int/edocs/lexdocs/laws/en/cn/cn114en.html
- https://web.archive.org/web/20220302095511/https://www.gov.cn/zhengce/zhengceku/2021-12/28/content_5664886.htm
- https://web.archive.org/web/20241122153224/https://www.gov.cn/zhengce/zhengceku/2021-12/28/5664886/files/5b1aecc9c9704b05b7a930eb6fd74e29.pdf
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CHINA
Since April 2007, extended in April 2019 until April 2024
Pillar Tariffs and trade defence measures applied on ICT goods |
Indicator Antidumping, countervailing duties, and safeguard measures on ICT goods
Antidumping measure
In April 2007, the Ministry of Commerce of the People's Republic of China announced anti-dumping duties on electrolytic capacitor paper (HS 480511, 480591) imported from Japan. This measure was revised and extended in April 2013 and then in April 2019. The rate of duty imposed ranges from 15% to 40.83%, depending on the company.
Coverage Product: Paper for electrolytic capacitor (HS 480511, 480591)
Country: Japan
Country: Japan
CHINA
Since June 2017
Since June 2017
Since May 2017
Since December 2021, entry into force in January 2022
Since June 2017
Since May 2017
Since December 2021, entry into force in January 2022
Pillar Foreign Direct Investment (FDI) in sectors relevant to digital trade |
Indicator Maximum foreign equity share
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)
Provisions on the Management of Internet News Services (互利网新闻服务管理规定)
Special Management Measures for Foreign Investment Access (Negative List) (2021 Edition) (外商投资准入特别管理措施 (负面清单) (2021 年版)
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)
Provisions on the Management of Internet News Services (互利网新闻服务管理规定)
Special Management Measures for Foreign Investment Access (Negative List) (2021 Edition) (外商投资准入特别管理措施 (负面清单) (2021 年版)
Internet news collecting, editing and publishing services are reserved for State media (or its controlled subsidiaries) and news media controlled by the Party news department. Private investment is expressly prohibited in news collecting and editing services.
As per the 2021 Negative List, investment in internet news services is prohibited. It also provides that the printing of publications must be controlled by the Chinese Party.
The New Regulations also provide that the Government may have a “special management share” in certain internet news providers. The Cyberspace Administration of China (CAC) does not elabourate on the meaning of the special management share. It is understood that the Government could use any special management share in an Internet News Provider to retain control over specific issues. It is unclear whether the regime would apply to all types of Internet News Providers, including privately-owned ones.
Additionally, the Provisions on the Management of Internet News Services issued by the CAC, like the old rules, ban Sino-foreign equity joint ventures, Sino-foreign cooperative joint ventures, or wholly foreign-invested enterprises from engaging in the Internet news industry. Any cooperation involving internet-based news information services and foreign-invested enterprises must be reported to the national CAC for security assessment.
The Provisions on the Management of Internet News Services also 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.
As per the 2021 Negative List, investment in internet news services is prohibited. It also provides that the printing of publications must be controlled by the Chinese Party.
The New Regulations also provide that the Government may have a “special management share” in certain internet news providers. The Cyberspace Administration of China (CAC) does not elabourate on the meaning of the special management share. It is understood that the Government could use any special management share in an Internet News Provider to retain control over specific issues. It is unclear whether the regime would apply to all types of Internet News Providers, including privately-owned ones.
Additionally, the Provisions on the Management of Internet News Services issued by the CAC, like the old rules, ban Sino-foreign equity joint ventures, Sino-foreign cooperative joint ventures, or wholly foreign-invested enterprises from engaging in the Internet news industry. Any cooperation involving internet-based news information services and foreign-invested enterprises must be reported to the national CAC for security assessment.
The Provisions on the Management of Internet News Services also 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 Private news providers
Sources
- https://web.archive.org/web/20220127231019/https://www.lexology.com/library/detail.aspx?g=b2aa77aa-0270-40f8-9f18-ad65b6130259
- https://web.archive.org/web/20201111224928/https://www.chinalawtranslate.com/en/provisions-on-administrative-law-enforcement-procedures-for-internet-information-content-management/
- https://web.archive.org/web/20231221221634/https://chinacopyrightandmedia.wordpress.com/2017/05/02/internet-news-information-service-management-regulations-2/
- https://web.archive.org/web/20231107150741/http://www.cac.gov.cn/2017-05/02/c_1120902760.htm
- https://web.archive.org/web/20230331160532/https://www.ndrc.gov.cn/xxgk/zcfb/fzggwl/202006/P020200624549035288187.pdf
- https://web.archive.org/web/20231107150746/http://www.cac.gov.cn/2017-05/02/c_1120902931.htm
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CHINA
Since August 2014, extended in August 2020, until August 2025
Pillar Tariffs and trade defence measures applied on ICT goods |
Indicator Antidumping, countervailing duties, and safeguard measures on ICT goods
Antidumping measure
In August 2014, the Ministry of Commerce of the People's Republic of China (MOFCOM) announced anti-dumping duties on single-mode optical fibres imported from India. In August 2020, the MOFCOM reported that it would continue to impose antidumping duties for another five years. This measure was revised and extended in April 2020 for another five years. The rate of duty imposed ranges from 7.4% to 30.6%, depending on the company.
Coverage Product: Single-mode optical fibre (HS 900110, 901890)
Countries: India
Countries: India
CHINA
Since July 2018, until July 2025
Pillar Tariffs and trade defence measures applied on ICT goods |
Indicator Antidumping, countervailing duties, and safeguard measures on ICT goods
Antidumping measure
In July 2018, the Ministry of Commerce of the People's Republic of China (MOFCOM) announced anti-dumping duties on optical fibre preform imported from Japan and the United States. Optical fibre preforms are considered intermediary ICT goods. They are used in the production of optical fibre, which is then utilised in various ICT goods and infrastructure such as internet networks, telecommunications systems, and data centres. Imports from Japan are subject to rates ranging from 14.4% to 31.2%, while those from the United States are subject to rates between 17.4% and 41.7%.
Coverage Product: Optical fibre preform (HS 70022010)
Country: Japan, United States
Country: Japan, United States
CHINA
Since January 2005, extended in January 2011, 2017 and 2022, until January 2027
Pillar Tariffs and trade defence measures applied on ICT goods |
Indicator Antidumping, countervailing duties, and safeguard measures on ICT goods
Antidumping measure
In January 2005, the Ministry of Commerce of the People's Republic of China announced anti-dumping duties on non-displacement single-mode optical fibres (used, for example, for long-distance telephony and multichannel television broadcasting systems) (HS code: 9001.1000) imported from Japan and South Korea. This measure was reviewed and extended in January 2011 and, subsequently, in January 2017 and January 2022. The rate of duty imposed on imports originating in Japan is 46%, while imports originating in South Korea range from 7.9% to 46%, depending on the company.
Coverage Product: Dispersion unshifted single-mode optical fibres (HS 9001.1000)
Countries: Japan, South Korea
Countries: Japan, South Korea
CHINA
Since April 2011, extended in April 2017 and 2022, until April 2027
Pillar Tariffs and trade defence measures applied on ICT goods |
Indicator Antidumping, countervailing duties, and safeguard measures on ICT goods
Antidumping measure
In April 2011, the Ministry of Commerce of the People's Republic of China announced anti-dumping duties on non-displacement single-mode optical fibres (used, for example, for long-distance telephony and multichannel television broadcasting systems) (HS code: 9001.1000) imported from the EU and the U.S. This measure was reviewed and extended in April 2017 and, subsequently in April 2022. The duty rate on imports originating from the European Union ranges from 12.9% to 29.1%, depending on the company. The duty rate on imports originating from the United States ranges from 33.3% to 78.2%, depending on the company.
Coverage Product: Dispersion unshifted single-mode optical fibres (HS 9001.1000)
Countries: European Union, United States
Countries: European Union, United States
CHINA
Since January 2003, last amended in January 2014
Pillar Public procurement of ICT goods and online services |
Indicator Exclusion from public procurement
Government Procurement Law of the People's Republic of China (Order of the President No. 68) (中华人民共和国政府采购法 (主席令第68号))
Art. 10 of the Government Procurement Law states that procuring entities must procure domestic goods, construction, and other services, except in one of the following situations: (i) where the goods, construction, or other services needed are not available within the territory of China or cannot be acquired on reasonable commercial terms, even if they are available in China; (ii) where the items to be procured are for use abroad; and (iii) where otherwise provided for by other laws and administrative regulations.
Moreover, the Chinese public procurement regulations actively promote a Buy Chinese policy. In principle, only Chinese companies are allowed to bid in public tenders, with foreign companies permitted only under exceptions. Government agencies and related entities are required to purchase equipment and technology from Chinese state-owned or privately-owned manufacturing companies. It is reported that public tenders often lack sufficient publicity. Furthermore, central and local entities tend to implement these provisions very broadly, exceeding the discriminations imposed by the law.
Moreover, the Chinese public procurement regulations actively promote a Buy Chinese policy. In principle, only Chinese companies are allowed to bid in public tenders, with foreign companies permitted only under exceptions. Government agencies and related entities are required to purchase equipment and technology from Chinese state-owned or privately-owned manufacturing companies. It is reported that public tenders often lack sufficient publicity. Furthermore, central and local entities tend to implement these provisions very broadly, exceeding the discriminations imposed by the law.
Coverage Horizontal
Sources
- https://web.archive.org/web/20230307183711/http://www.gov.cn/gongbao/content/2002/content_61590.htm
- https://web.archive.org/web/20240718080538/https://www.wto.org/english/tratop_e/tpr_e/s458_e.pdf
- https://web.archive.org/web/20210328030308/https://trade.ec.europa.eu/doclib/docs/2013/april/tradoc_150848.pdf
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CHINA
Since July 2014
Pillar Public procurement of ICT goods and online services |
Indicator Exclusion from public procurement
Report by the National Development and Reform Commission of China and the Ministry of Finance
A report by the National Development and Reform Commission of China and the Ministry of Finance bans the purchase of certain foreign IT products for selected government procurement lists. For example, one government procurement list banned ten Apple Inc. products, including the iPad, iPad Mini, MacBook Air and MacBook Pro.
A separate procurement list includes some Apple computers that departments can continue to buy on a smaller scale, i.e. purchases totalling less than 1.2 million yuan (USD 195,000). Products from Dell Inc., Hewlett-Packard Co. and Chinese maker Lenovo Group Ltd. were included on both lists. This ban applies to all central Communist Party departments, government ministries and local governments.
A separate procurement list includes some Apple computers that departments can continue to buy on a smaller scale, i.e. purchases totalling less than 1.2 million yuan (USD 195,000). Products from Dell Inc., Hewlett-Packard Co. and Chinese maker Lenovo Group Ltd. were included on both lists. This ban applies to all central Communist Party departments, government ministries and local governments.
Coverage Apple Inc. products including the iPad, iPad Mini, MacBook Air and MacBook Pro as well as some Apple computers
Sources
- https://web.archive.org/web/20211025203953/http://www.globaltradealert.org/state-act/7494
- https://web.archive.org/web/20231202133443/http://www.bloomberg.com/news/articles/2014-08-06/china-said-to-exclude-apple-from-procurement-list
- https://web.archive.org/web/20230327041248/http://chinadigitaltimes.net/2014/08/apple-excluded-chinese-government-procurement/
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CHINA
Since June 2014
Pillar Public procurement of ICT goods and online services |
Indicator Exclusion from public procurement
Result of the public tender for central government procurement of electronic information products of 2014 (Vol. 21, GC-HJ140283) (2014年中央政府采购电子信息产品公开招标结果 (Vol. 21, GC-HJ140283))
In June 2014, the Centre of Public Procurement of the Central Government issued the result of the public tender for central government procurement of electronic information products of 2014 (Vol. 21, GC-HJ140283). Under the "Antivirus Software" category, all foreign security providers such as Kaspersky and Symantec were excluded from the list. Only five Chinese providers, i.e. 360, Jiangmin, Rising, Kingsoft, and KILL, are listed for national security consideration.
Coverage Foreign security providers of antivirus software
Sources
- https://web.archive.org/web/20211025203955/https://www.globaltradealert.org/state-act/6887
- https://web.archive.org/web/20200324133026/https://chinadigitaltimes.net/2014/08/china-bars-foreign-antivirus-cybersuspicion-deepens/
- https://web.archive.org/web/20241202144451/http://www.ctba.org.cn/list_show.jsp?record_id=230637
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CHINA
Since June 2007
Since December 2019
Since December 2019
Since December 2019
Since December 2019
Since December 2019
Since December 2019
Pillar Public procurement of ICT goods and online services |
Indicator Surrender of patents, source code or trade secrets to win public tenders/Restrictions on technology standards for public tenders
Administrative Measures for the Multi-level Protection of Information Security
Information Security Technology - Baseline for Cybersecurity Classification Protection (GB/T 22239-2019)
Information Security Technology - Technical Requirements of Security Design for Cybersecurity Classification Protection (GB/T 25070-2019)
Information Security Technology - Evaluation Requirements for Cybersecurity Classification Protection (GB/T 28448-2019).
Information Security Technology - Baseline for Cybersecurity Classification Protection (GB/T 22239-2019)
Information Security Technology - Technical Requirements of Security Design for Cybersecurity Classification Protection (GB/T 25070-2019)
Information Security Technology - Evaluation Requirements for Cybersecurity Classification Protection (GB/T 28448-2019).
The Administrative Measures for the Multi-level Protection of Information Security (MLPS) require all IT systems in China to be classified into different levels of security, from one to five (with the most sensitive systems designated as level 5). In 2019, the MLPS 2.0 (composed by GB/T 22239-2019, GB/T 25070-2019, and GB/T 28448-2019) has expanded the definition of 'information systems' to broader systems, including network infrastructure, cloud computing systems, mobile application platforms, connected devices and industrial control systems.
The MLPS 2.0 requires networks of level 3 and above to adopt network products and services appropriate to their security protection levels. Companies classified as level 2 and above require the procurement and use of encryption products and services to be preapproved by the Chinese government. Under the MLPS 2.0, companies must self-assess their security management and compliance, and such assessment results must be evaluated and endorsed by the MLPS regulatory body.
The MLPS 2.0 requires companies in China to set up their cloud infrastructure, including servers, virtualised networks, software, and information systems. Such cloud infrastructures are subject to testing and evaluation by the Chinese government. Overseas operation and maintenance of Chinese cloud computing platforms must also follow Chinese laws and regulations. The national standards also state that customers' data and users' personal information processed by cloud service providers should be stored inside China, which is an additional requirement. It is currently uncertain how these national standards would be enforced, and there have not yet been reports of enforcement.
The MLPS 2.0 requires networks of level 3 and above to adopt network products and services appropriate to their security protection levels. Companies classified as level 2 and above require the procurement and use of encryption products and services to be preapproved by the Chinese government. Under the MLPS 2.0, companies must self-assess their security management and compliance, and such assessment results must be evaluated and endorsed by the MLPS regulatory body.
The MLPS 2.0 requires companies in China to set up their cloud infrastructure, including servers, virtualised networks, software, and information systems. Such cloud infrastructures are subject to testing and evaluation by the Chinese government. Overseas operation and maintenance of Chinese cloud computing platforms must also follow Chinese laws and regulations. The national standards also state that customers' data and users' personal information processed by cloud service providers should be stored inside China, which is an additional requirement. It is currently uncertain how these national standards would be enforced, and there have not yet been reports of enforcement.
Coverage Information Systems including network infrastructure, cloud computing systems, mobile application platforms, connected devices and industrial control systems
Sources
- https://web.archive.org/web/20240113024902/http://www.ustr.gov/sites/default/files/2014%20TBT%20Report.pdf
- https://web.archive.org/web/20240328031234/https://www.dataguidance.com/opinion/china-mlps-20-baseline-requirements-and-practical
- https://web.archive.org/web/20241202145636/https://www.amcham-shanghai.org/en/article/mlps-20-set-take-effect-december-1
- https://web.archive.org/web/20211125185807/https://assets.kpmg/content/dam/kpmg/cn/pdf/en/2019/05/mlps-insights-strategies.pdf
- https://web.archive.org/web/20231210013940/https://www.csis.org/analysis/how-chinese-cybersecurity-standards-impact-doing-business-china
- https://web.archive.org/web/20220706053414/https://www.tanovo.com/upload/sitearticle_file/208/%E3%80%90%E7%AD%89%E4%BF%9D2.0-%E6%AD%A3%E5%BC%8F%E5%8F%91%E5%B8%83%E7%89%88%E3%80%91GBT25070-2019%E4%BF%A...
- https://web.archive.org/web/20220129105239/https://www.djbh.net/webdev/web/HomeWebAction.do?p=getGzjb&id=8a81825674296d130174bdf702c8002e
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CHINA
Since July 1999
Pillar Public procurement of ICT goods and online services |
Indicator Surrender of patents, source code or trade secrets to win public tenders/Restrictions on technology standards for public tenders
OSCCA Regulation on Commercial Encryption OSCCA (商用密码管理条例)
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 practice, this means that using foreign encryption products in public procurement is effectively prohibited in China. International firms are therefore excluded from government contracts for ‘information security products’ such as smart cards, firewalls and secure databases.
Coverage Encryption products and encryption software
CHINA
Since November 2009
Since April 2010
Since April 2010
Pillar Public procurement of ICT goods and online services |
Indicator Other limitations on foreign participation in public procurement
Directive No. 618 “Notification Regarding the Launch of National Indigenous Innovation Product Accreditation Work for 2009” (关于开展2009年国家自主创新产品认定工作的通知)
Notice Launching the National Indigenous Innovation Product Accreditation Work for 2010 (关于开展2010年国家自主创新产品认定工作的通知)
Notice Launching the National Indigenous Innovation Product Accreditation Work for 2010 (关于开展2010年国家自主创新产品认定工作的通知)
Directive No. 618 establishes a framework for promoting Chinese products in government procurement by creating an accreditation system with specific criteria. To qualify, products must be manufactured by enterprises with full Chinese intellectual property ownership or by Chinese entities with legally obtained rights. The product's trademark must be owned by a Chinese-registered company and certified by relevant national or provincial authorities. The 2010 Notice revised some requirements, allowing for licensed foreign IP use while maintaining a focus on Chinese ownership or usage rights for trademarks. This regulatory approach presents significant challenges for non-Chinese companies, as it requires freedom from foreign restrictions on IP use and prioritises products with strong ties to Chinese intellectual property and enterprises. The overall policy aims to foster indigenous innovation and give preference to Chinese-developed or Chinese-owned products in government procurement, potentially limiting opportunities for foreign entities in this market.
Coverage Computers and application equipment; communications products; modern office equipment; software, energy efficient products, new energy equipment
Sources
- https://web.archive.org/web/20211025203948/https://www.lexology.com/library/detail.aspx?g=f0a279be-d08c-4892-9a1e-16523d1ef026
- https://web.archive.org/web/20231006094815/https://www.usitc.gov/publications/332/pub4199.pdf
- https://web.archive.org/web/20220627230232/http://www.ccgp.gov.cn/zcfg/bwfile/201311/t20131113_3591905.htmm
- http://www.most.gov.cn/tztg/201004/t20100409_76710.html
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CAMBODIA
N/A
Pillar Online sales and transactions |
Indicator Ratification of the UN Convention on the Use of Electronic Communications in International Contracts
Lack of signature of the UN Convention on the Use of Electronic Communications in International Contracts
Cambodia has not signed the United Nations (UN) Convention on the Use of Electronic Communications in International Contracts.
Coverage Horizontal
CAMBODIA
Since 2003
Pillar Online sales and transactions |
Indicator UNCITRAL Model Law on Electronic Commerce
UNCITRAL Model Law on Electronic Commerce
Cambodia 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
