Beijing's New E-commerce Regulations

Baker & McKenzie   

The results of a recent China Internet Network Information Centre (CNNIC) report suggest a rapidly growing internet user base in the PRC.  According to the report, there are now 45.8 million internet users in the PRC, compared with 26.5 million recorded in July 2001.  The growth theory is supported by PRC industry data, which reveals that PC sales and internet subscriptions for the first half of 2002 generally outperformed industry expectations.  However, the CNNIC results are disappointing on e-commerce - CNNIC suggest that only 0.3% of all internet activity in the PRC is focused on e-commerce. 

The survey highlighted a number of factors affecting purchasing behaviour, including a lack of confidence in e-commerce merchants and product quality issues.  Interestingly, some of these concerns are reflected in the recent Supervision and Administration of Electronic Commerce Tentative Procedures (the Tentative Procedures) issued by the Beijing Municipal Administration for Industry and Commerce (BAIC) with document Jing Gong Shang Fa [2002] No. 105, and effective from August 1 2002.