BEIJING: China proposed amendments on Saturday to its e-commerce law that would, for the first time, build a solid legal basis for taking reciprocal countermeasures against foreign entities that impose discriminatory restrictions on Chinese e-commerce companies.
The draft amendments, which were jointly released by the State Administration for Market Regulation and the Ministry of Commerce, represent the first major revision to China’s e-commerce law since it took effect in 2019.
One of the biggest changes is the new countermeasure provision, which lays the legal groundwork for China to take reciprocal actions against countries, regions or entities that adopt discriminatory measures targeting Chinese e-commerce businesses.
The proposal would empower Chinese authorities with legal justifications, under China’s unreliable entity list, to investigate foreign entities that harm the legitimate interests of Chinese companies, and would impose corresponding restrictions when deemed appropriate. Hong Yanqing, a professor at the Beijing Institute of Technology’s School of Law, said, “The significance of the new provision lies not only in creating stronger countermeasures than those already available under existing laws, but also in establishing a clear legal entry point for addressing discriminatory practices in the e-commerce sector.”
“When foreign measures discriminate against Chinese e-commerce businesses through platforms, payment, logistics, data, cloud services, advertising, app distribution and supply chain compliance mechanisms, the legal framework will be able to identify and respond to such practices in accordance with the law,” he said.
Hong said that introducing countermeasure provisions reflects a broader trend among major economies. The European Union, for example, has adopted a wide range of response measures, including restrictions on trade in services as well as limits on the protection or commercial use of intellectual property.
The EU measures “extend across services trade, investment, financial services, government procurement, intellectual property and supply chain-related activities. E-commerce and digital trade sit at the intersection of all these areas, making them particularly vulnerable to such restrictions,” he said. –The Daily Mail-China Daily news exchange item
