A draft legal amendment aiming to regulate the platform economy more comprehensively in the field of China’s e-commerce has been submitted for public feedback. Prepared by China’s State Administration for Market Regulation and the Ministry of Commerce, the draft aims to strengthen the responsibilities of platforms, protect consumer rights, prevent unfair competition, and establish a more effective governance model in the digital retail ecosystem.
China’s E-Commerce Regulation Consists of 20 Articles
According to the statement, the draft amendment consists of 20 articles and envisages innovations in five main areas. The regulation aims to expand the scope, which in the current structure is limited only to platforms and sellers within platforms, and to clarify the rights and obligations of other participants in the platform economy as well. The draft highlights the closure of regulatory gaps and the creation of a more clearly defined responsibility framework for all actors in the platform economy.
Platform Responsibility and Algorithm Oversight Will Be Strengthened
The new regulation in China’s e-commerce law envisages improving responsibility mechanisms and diversifying oversight tools to ensure that platforms fulfill their obligations. In addition to existing sanctions such as fines and suspension of operations, broader regulatory tools that will support routine supervision are planned to be introduced.
The draft of China’s e-commerce law also emphasizes strengthening oversight over platform companies’ data, algorithms, traffic, and operating rules. This issue is important in terms of AI-supported recommendation systems, digital advertising, product visibility, and online retail operations.
Joint Oversight in Online and Offline Retail
The new regulation for e-commerce in China aims to introduce a consistent oversight approach in online and offline business models by taking into account cross-sector activities in the platform economy. Increasing coordination between central and local authorities and different public institutions is also among the prominent topics of the draft. The draft envisages updating the relevant provisions against consumer rights violations, unfair competition, and unlawful practices that have drawn public reaction.
International Alignment and Overseas Expansion Are on the Agenda
Chinese officials stated that alignment with international rules and standards in the field of e-commerce in China will be increased, sector self-regulation will be encouraged, and the orderly overseas expansion of China’s e-commerce companies will be supported. Officials also stated that the draft will be improved in line with feedback from the public and that the legal amendment will be advanced as soon as possible. The regulation aims to create a stronger legal foundation for innovation and healthy development in the platform economy.