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ARTICLE · 16 NOVEMBER 2016

Recent Developments In The Chinese Regulatory Regime Governing E-Commerce

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The Chinese regulatory regime governing e-commerce has been constantly evolving as domestic and cross-border e-commerce continues its rapid growth.

United StatesCorporate/Commercial Law
Wan Li
Wan Li
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The Chinese regulatory regime governing e-commerce has been constantly evolving as domestic and cross-border e-commerce continues its rapid growth.  Recently, the regulatory environment has opened up in several ways: restrictions on foreign shareholding have been eased, a more favorable tax treatment has been promulgated, and new zones are being opened to facilitate free trade and cross-border e-commerce.

Restrictions Eased on Foreign Shareholding in Chinese e-Commerce Companies

In June 2016, a wholly foreign-owned entity (WFOE) owned by Heiwado, a Japanese company, obtained the first e-commerce license for a WFOE in China.  However, this occurred only after almost a year had passed since the Ministry of Industry and Information Technology (MIIT) had formally lifted its restrictions on foreign shareholding.  

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