Chinese Government Steps In To Regulate Internet Retail Services

China’s Ministry of Commerce has drafted the “Network Retailing Management Approach”, which will cover more than 40 guidance items surrounding e-commerce activities in China.

The “Third-party Network Trading Platform Management Approach” is also expected to be launched at the end of 2012.

In early 2012, Chen Deming, minister at the Ministry of Commerce, said during a working meeting that they will promote the launch of the “Network Retailing Management Approach”, and will research and formulate related regulations including “Third-party Network Trading Platform Management Approach”. Those regulations aim to solve disputes in small transactions online and protect Internet business data.

The regulations will help guide the popularization and use of e-commerce in China; promote the healthy development of Internet shopping; build an e-commerce credit system; and explore and construct an e-commerce information database and information publishing platform.

The Ministry of Commerce reportedly started drafting of “Network Retailing Management Approach” in 2011 and many government units, including the Ministry of Public Security, State Administration for Industry and Commerce, State Administration of Taxation, and Ministry of Industry and Information Technology, as well as legal experts participated in the discussion and formulation of the approach.