policy ticker

7 April 2016

direct retail import-tax subsidy positive list

11 agencies published an expected positive list of goods authorised for

entry to the Chinese market through direct retail. The list mostly

concerns consumer goods, such as food and beverages, clothing,

home appliances, cosmetics, nutrition supplements and health

products. Goods under the list can now enter through 65 commercial

ports instead of only parcel ports. They will also enjoy expedited

customs clearance. However, the list excludes fresh food, liquid milk,

goods containing plants and animals and unapproved cosmetics. It also

clarifies certification regulations on infant formula milk powder.

Consumers will see price increases in imported food, nutrition products,

and maternity and infant products, says Liu Dacheng 刘⼤成 Tsinghua

University, but some cosmetics and home appliances will be cheaper.

Businesses will not significantly increase their prices, says Liu Peng 刘鹏 Tmall International, because even with higher taxes, exporters still

have large profit margins.

MoF, Economic Information, Sina

e-commerce 电⼦商务, fiscal policy 财政政策, food safety ⾷品安全,

logistics 物流

24 March 2016

e-commerce logistics development plan to cut costs

Officials have gone on the front foot to talk up the e-commerce logistics development plan. Information technology and resource sharing between enterprises will lower logistics costs, says Zhang Li 张莉 MofCOM, pointing in particular to rural e-commerce development in central and western regions. In addition, standardisation of pallets will improve loading efficiency, save labor and lower labor costs, says Zheng Wen 郑⽂ MofCOM. Commentators reacted positively to the plan. Underdeveloped resource integration systems has resulted in huge waste of logistics resources such as warehouses, says Song Ze 宋则 CASS. Large-scale online platforms, slated in the plan, will reduce redundant transportation and allocate resources more efficiently, says Song. By integrating previously scattered transportation, warehouse and delivery resources, the plan will promote SMEs and make efficient use of excess capacity, says 洪涛 Hong Tao Beijing Technology and Business University. iFeng , Economic Information , Hexun

e-commerce 电⼦商务

24 March 2016

annual work plans for e-commerce and digitisation 2016

MofCOM outlines eighteen measures for e-commerce development in

2016, primarily building legal frameworks, developing strategic

industries, improving standardisation and improving administrative

efficiency. Notable progress has been made in e-commerce law,

cross-border e-commerce pilot zones, and the ‘Internet+distribution’

plan. Provincial departments of commerce are expected to soon

release more detailed work plans specific to their regions

● draft 13th 5-year plan for e-commerce

● e-commerce legislation, including the national e-commerce law,

assessment index and classification for online retail platform

self-run businesses, inspection and sampling standards for

e-commerce consumer products, and mobile intangible goods

(and services) e-commerce business services regulations

● develop e-commerce credit system

● sign partnership protocols with foreign countries and participate in

international dialogue under APEC, ESCAP, BRICS and

Shanghai Cooperation Organisation

● upgrade enterprise supply chains, promote green industry and

distribution under the ‘Internet+distribution’ plan

● develop small-town e-commerce

● integrate e-commerce into residential communities

● promote cross-border e-commerce

● establish education bases and develop training classes to

cultivate e-commerce experts

● explore public service models to support innovation and

entrepreneurship in exemplary zones

● publicise experience of exemplary enterprises

● establish pilot programs that integrate e-commerce and logistics

● develop big data pilots in domestic trade

● improve statistical monitoring systems

● integrate digital administrsupport rural e-commerce for poverty

reductionative resources from MofCOM

● prepare an international e-commerce expo

● optimise public information services

● improve website security and promote the use of non-pirated software

MofCOM

e-commerce 电⼦商务, internet+

14 March 2016

support rural e-commerce for poverty reduction

Online-to-offline e-commerce development in rural areas sidesteps intermediaries, lowering living costs for rural customers and opening markets for agricultural products and rural artefacts. Lack of familiarity and expertise in e-commerce amongst rural residents, says Shi Wenbin ⽯⽂斌 NPC delegate, has slowed rural e-commerce uptake. Shi recommends

● MoF set up a fund dedicated to supporting young rural entrepreneurs, as well as encourage SMEs, rural collectives and village officials to promote and educate people about e-commerce

● local poverty reduction departments cooperate with rural committees, MoHRSS and MofCom to conduct village-level e-commerce training, incorporating CCP members, convenience store managers, young entrepreneurs and returning migrant workers

Sina

e-commerce 电⼦商务, poverty 贫穷

14 March 2016

e-commerce law draft ready for public consultation

NPC Financial and Economic Affairs Committee finished draft of the

first e-commerce law, in which it focused on legal frameworks for areas

including market access and exit, digital contracts and payment,

intellectual property and consumer rights protection, fair market

competition, and cross-border e-commerce. The drafting process,

which began in 2013, involved MoC, China Electronic Commerce

Association, Peking University, and local financial and economic affairs

committees. The draft will soon be open for public consultation, with

plans for submission to the NPC Standing Committee by the end of

2016.

E-commerce is unregulated, leading to security problems and

commercial fraud, said Hu Zijing 胡⼦敬 NPC delegate, while taxation is

also under-developed. Laws are needed, added Wu Ritu 乌⽇图 NPC

Financial and Economic Affairs Committee to enhance market

regulation, reduce consumer rights infringement, improve data

protection and clarify responsibility in online platforms. International Business News, China Trade News

e-commerce 电⼦商务, industrial policy 产业政策, innovation 创新

11 March 2016

online food market regulation about to be issued

CFDA is soon going to introduce its ‘Management approach for supervising online food businesses’, says Chen Xu 陈谞 CFDA Legal Affairs Department deputy director. The document, says Chen, will

● regulate third party online trading platforms’ general, management and consumer interest protection obligations, in line with the Food Safety Law; if the trading platform prevents authorities from finding illegal operators, it will be responsible for any compensation

● stipulate specific requirements for publishing clear information about food sold on the internet, particularly emphasising authenticity and health foods

● clarify special requirements for and jurisdiction over distributing food online

● increase supervision and inspection regulations, potentially introducing a ‘mystery buyer’ system for sampling food

● clarify jurisdiction over operations and supervision: local supervision departments will be responsible for third party platforms, and local food and drug administrations for suppliers

China Food Newspaper

e-commerce 电⼦商务, industrial policy 产业政策, innovation 创新

23 February 2016

UnionPay to challenge Alipay, WeChat with NFC technology

30 million accounts were linked to Apple Pay on Feb 18, its first day available in China. Apple Pay is backed by 19 banks and will work in partnership with UnionPay, China’s domestic bank card association. Samsung Pay is set to launch in March, also in partnership with UnionPay, to compete with market leaders Alipay (Alibaba) and WeChat (Tencent). UnionPay hopes that Apple and Samsung’s better security features, including Near Field Communication (NFC) technology, can attract customers to use UnionPay products for both personal transfers and regular purchases.

UnionPay market share is unlikely to grow signficantly in the short term, say experts, who cite low NFC terminal coverage (30 percent) as a key issue. But NFC terminals are set to proliferate with PBoC support: the central bank favours NFC because it allows authorities more oversight and control. UnionPay is also directly offering subsidies to partner businesses for point-of-sale and NFC machines. Sina Finance, China Business News (1) , China Business News (2)

banking 银⾏业, e-commerce 电⼦商务

29 January 2016

more policy support needed for O2O

As government rolls back subsidies for online-to-offline (O2O) businesses, companies have two options: consolidate into successful oligopolies, or go bankrupt after failing to retain customers. More supportive policy is required for greater diversity of O2O businesses, says Huang Linli ⻩林莉 Baidu R&D Centre. By introducing third-party O2O evaluation, recommends Huang, innovation in currently banned

areas, such as medical services, could be assessed rather than shut

out. Better access to government records would also reduce huge due

diligence costs faced by O2Os. Economic Information Daily