How can I ensure I comply with regulations in China?

LinkedIn Twitter Facebook

 

Author: Leemya Abdalla, Marketing Assistant, Red Lantern Digital Media

 

Standing at the forefront of global ecommerce trade, China is undoubtedly a tempting marketing for ambitious foreign companies with an eye for lucrative opportunities.

China’s eCommerce market is set to reach $1trn in 2020 according to AliResearch. However, despite this startling figure, regulations and policies may hinder a company’s willingness to tap into such a diverse market, or even negatively impact those that have already done so.

 

The Chinese government controls and monitors internet access, restricting information and content which it believes conflicts with its values.

 

This naturally has a restrictive effect on eCommerce activity, which foreign countries must consider when allocating a strategy for engaging with the Chinese market. Awareness and understanding of the impact (if any) of these regulations, depending on the nature of the company, is therefore vital in order to ensure correct compliance.

 

For example, the ‘import tax policies for retail of cross-border eCommerce’ (otherwise known as the ‘Notice’) places a limit on payments a vendor can receive on a tax-free basis. Vendors should take into consideration that they will have to pay a tax should they breach this limit.

 

Chinese Rules and Regulations created by Governement

 

Control over China’s cross-border eCommerce Comprehensive Test Zone is exercised to form a centralised operation under the watchful eye of the central government authorities. Everything from quality and safety standards to shipping and delivery systems are monitored. This has meant strict quality and safety regulations being imposed and loss of control of how a company’s products are distributed.

 

Aside from government regulations, landing on the right Chinese eCommerce platforms involves costs and requires both international and domestic logistics solutions.

For example, to be able to officially sell on JD.com, China's second largest eCommerce platform, a vendor would need to pay a deposit of $10,000 to JD and a maintenance fee of $1,000 annually. JD will assist the vendor with the design of the online store, provide recommendations for international logistics, and solutions for domestic logistics once the goods are in China. Costs and level of assistance will vary between different platforms.

Due to differences in business culture and the obvious language barrier, the Chinese market can seem daunting to newcomers. To effectively exploit the Chinese eCommerce phenomenon it is crucial to research as much as possible beforehand, particularly when it comes to all the necessary licensing and legal requirements for your chosen route to market.

 

For example, if you wish to set up a website with a Chinese domain, you must register for a state-issued ICP (Internet Content Provider) license.

 

For more inforamtion on Regulations and Requirements in China, download the free China Cross-Border Trading Passport

 

LinkedIn Twitter Facebook

5 tips for breaking into online retail in France

5 tips for breaking into online retail in France

France boasts being the 5th largest eCommerce market in the world and with an expectation to exceed €80 billion turnover in 2017, for those looking to enter this thriving online market here are five tips that could help you to break into the French online retail space.
Interview with Melanie Smallwood, International Buying Director at Global Fashion Group

Interview with Melanie Smallwood, International Buying Director at Global Fashion Group

eCommerce Worldwide Cross-Border Summit 2017 - Ahead of our annual event on 24th May, we interview Melanie Smallwood, International Buying Director at Global Fashion Group, to learn from her experience and knowledge in cross-border trading around the world.
Interview with Gregor McMillan, Business Development, China at The Hut Group

Interview with Gregor McMillan, Business Development, China at The Hut Group

eCommerce Worldwide Cross-Border Summit 2017 - Ahead of our annual event on 24th May, we interview Gregor McMillan, Business Development, China at The Hut Group, to learn from his experience and knowledge in cross-border trading into China.
Interview with Michael Truluck, CEO at La Redoute

Interview with Michael Truluck, CEO at La Redoute

eCommerce Worldwide Cross-Border Summit 2017 - Ahead of our annual event on 24th May, we interview Michael Truluck, CEO at La Redoute, to learn from his experience and knowledge in cross-border trading.
The latest view on eCommerce in Germany

The latest view on eCommerce in Germany

There are many benefits to entering the German eCommerce market - it’s the 3rd largest online market in Europe and has a very high internet penetration rate, but what other staistics do you need to know before entering this lucrative country?
How to use colour in cross-border online retail

How to use colour in cross-border online retail

Did you know colour can be an important driver of eCommerce sales? Research suggests 85% of buyers make their purchasing decision based on colour so getting it wrong could be a fundamental disaster for any online business. So what is the right colour to use?
Interview with Richard Longhurst, Co-Founder and Director at Lovehoney

Interview with Richard Longhurst, Co-Founder and Director at Lovehoney

eCommerce Worldwide Cross-Border Summit 2017 - Ahead of our annual event on 24th May, we interview Richard Longhurst, Co-Founder and Director at Lovehoney, to learn from his experience and knowledge in cross-border trading.
Building an eCommerce fraud prevention strategy for Germany

Building an eCommerce fraud prevention strategy for Germany

Being the world’s fifth largest eCommerce market, Germany has become an exceptionally popular destination for online merchants looking to sell their goods and services. However, retailers should still be aware of the high levels of fraud to do with their number one payment method. Therefore, what do you need to know about building an eCommerce fraud prevention strategy for Germany?
Interview with Kai Li, Vice President of International at Revolve

Interview with Kai Li, Vice President of International at Revolve

eCommerce Worldwide Cross-Border Summit 2017 - Ahead of our annual event on 24th May, we interview Kai Li, Vice President of International at Revolve Clothing, to learn from his experience and knowledge in cross-border trading.
How does device usage differ in France, Germany, and the UK?

How does device usage differ in France, Germany, and the UK?

It is well known that the use of smartphones and tablets has grown rapidly but which device dominates the traffic and at what time of day across France, Germany and UK? And how does device usage differ between these Countries?

Contact Us

eCommerce Worldwide
2 Ching Court
49-53 Monmouth St
London
WC2H 9EY

Tel: 0203 696 0980
2016© eCommerce Worldwide

Keep In Touch

powered by Affino

About eCommerce Worldwide

eCommerce Worldwide provides online retailers with all the information, and resources, they need to develop cross-border strategies for entering new markets around the world
Read More