With effect on 1 January 2019, China has officially enforced a new law for its e-commerce sector, with an aim to regulate the flourishing online shopping market that has been littered with counterfeit and copycat products.
The legislation requires all e-commerce operators to protect consumer rights, interests, and personal information, as well as safeguard intellectual property rights and cyberspace security. Aside from major e-commerce websites and mobile apps like Alibaba’s Taobao and Tmall, JD.com, and Pinduoduo, merchants doing business on these e-commerce platforms and those who operate online business through their own websites are also subject to the regulation of the new law.
According to the new law, those stationed outside of China and previously earned profits from shopping on behalf of consumers in China and selling goods to them at a higher price will now have to register as an e-commerce business in China and pay taxes. Also, dishonest activities from online merchandisers such as “deleting bad reviews” and “faking good reviews” will result in penalties from regulators in the future.