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

Black Friday growing strongly in Brazil

Black Friday growing strongly in Brazil

The phenomenal performance of Black Friday rippled around the world and Brazil was no different with eCommerce Brasil reporting billions in sales. So what are the figures coming out of Brasil on this bargain-hunting shopping day?
eCommerce in Brazil: Going local is key

eCommerce in Brazil: Going local is key

As with anywhere, Brazil has its fair share of problems – but with a population of 200 million, a tech-savvy and consumption-driven middle class and arguably the most internet-connected population in the world, is Brazil seen as a necessary evil for international merchants looking to expand internationally?
Why international e-tailers should re-visit the top of the funnel

Why international e-tailers should re-visit the top of the funnel

The role of brand awareness is increasingly critical to international expansion and with various platforms offering better reach and targeting than ever before, why is it important for international retailers to revisit the top of the funnel to help create a more compelling picture?
Quality of delivery offer important to Dutch shoppers

Quality of delivery offer important to Dutch shoppers

Cross-border eCommerce in Belgium and the Netherlands is making big strides and with a population of 28 million people and combined GDP of €1.08trn and English spoken widely, it’s no wonder it offers an attractive market to international merchants looking to expand into new territories. But does the quality of delivery offered that important to Dutch shoppers?
How to maximise your chances of success in India

How to maximise your chances of success in India

eCommerce is growing at an unprecedented rate in India thanks to a number of factors and with the percentage of online retail sales growing rapidly, what do retailers need to consider in order to maximise their chances of success in India?
What do Russian consumers want when it comes to cross-border shopping?

What do Russian consumers want when it comes to cross-border shopping?

Russia is the 9th biggest country in the world with roughly 30 million online Russian shoppers in 2015 which only continue to grows in 2016. However, with cross-border shopping being the fastest-growing segment of the Russian eCommerce market, what do Russian consumers want when it comes to cross-border shopping?
The importance of understanding what it is to be Russian

The importance of understanding what it is to be Russian

Russia, in terms of internet penetration, did lag behind most other European countries but is rapidly playing catch up. Not surprisingly, eCommerce has increased alongside internet penetration with an estimated 148 million orders generated in 2015. But with so many unknowns surrounding entering the Russian market, what are the golden rules?
What should retailers know about Russian attitudes to parcel deliveries?

What should retailers know about Russian attitudes to parcel deliveries?

Russia offers a potentially attractive market for international merchants, however the market needs careful consideration in order to get it right. Things to take into account include the distinctly different Russian way of thinking, along with the legal rules and political context of the country. So what are the key things retailers need to know?
Retail Pricing in a post-Brexit world

Retail Pricing in a post-Brexit world

Since Brexit, a number of events have taken place which has meant the price of items has significantly dropped in the UK. But what are the affects of the UK leaving the European Union on retail pricing?
Australia extends tax to foreign eCommerce

Australia extends tax to foreign eCommerce

For a number of valid reasons, Australia is still a destination firmly in the minds of any business looking to expand into the APAC region. With an attractive foreign eCommerce tax law favoring companies coming into Australia, what are the big changes coming down the line in 2017?

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