E-commerce in China

April 16, 2010 | BY

clpstaff &clp articles

Entering the China market via its cyberspace can be daunting when rules are unclear to foreigners. Here, three specialists offer their advice on how to do e-business in accordance with PRC guidelines.

I want to open up my business online to PRC clients. But after witnessing some recent issues between internet companies and Chinese authorities, I am wary and unsure of how to enter the market. E-commerce policy and regulation seem underdeveloped in China so I'm wondering if there are any guidelines I should adhere to.

What do I need to consider when starting an e-business in China?

The domestic perspective

Of the server for your e-commerce website is located outside China and you have no business entity incorporated in the territory of China, the transactions between your entity and the Chinese consumers are deemed cross-border transactions. You are not obligated to secure any licence from the Chinese government. The disadvantages of the cross-border model are obvious: The cross-border payment will be the first barrier and, under some circumstances, access to your website may be blocked.