This article looks at the legal framework & regulation in the China eCommerce market and outlines the relevant requirements for trading in this territory.
The highest legal body in China is the National People’s Congress, a body tasked with approving the laws submitted by relevant designated departments of the Chinese administration. Local Governments also set up various rules and regulations that apply to their individual localities. When establishing companies and running businesses within China, foreign enterprises must pay taxes according to Chinese tax laws
The Chinese legal landscape is complex and an aspiring e-retailer looking to trade in China must ensure they have a comprehensive understanding of this regulatory environment before they initiate trade. Regulations have been known to change quickly, and there is widespread inconsistency in their application across different regions, making legal and regulatory transparency of the utmost importance for foreign companies in this territory. That said, by emerging market standards, China is a fairly stable and predictable business environment and systems of regulation and process approval has improved. Ultimately, a prospective entrepreneur should not be deterred by these stumbling blocks. Equipping yourself with the requisite knowledge is key and seeking local advice can be invaluable.
A retailer should not assume that Hong Kong and China operate under similar legal systems; as a former British colony, Hong Kong has a more accommodating common law regime, whereas China operates a system based upon civil law.
We have compiled a series of tables in the full country guide containing some of the key legislation to consider before you begin trading in the Chinese market.
The table in the full country guide contains some key legislation to consider before you begin trading in China.
This article provides a legal framework overview of the China eCommerce market – we have produced a full country guide covering in-depth information on multiple aspects of trading into this territory including logistics, payments, legal framework and marketing.
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