China’s New E-Commerce Law: Opening Up to More Imported Goods While Tightening Rules

Executive Summary

China recently unveiled the “People’s Republic of China E-Commerce Law” that will take effect January 1, 2019. The results will be mixed.

• E-commerce has grown its share of retail sales in China, yet regulations were still loose. So, the Chinese government moved to tighten them.
• E-commerce will become more regulated under the new law: Consumers will enjoy better protection and e-commerce operators will have to deal with stricter regulations.
• The good news is that the new law also increases the amounts Chinese consumers can buy online from overseas sources, with the single-purchase limit rising from ¥2,000 to ¥5,000 and the yearly limit from ¥20,000 to ¥26,000.