E-commerce in China

China is the world's largest market for e-commerce. Domestic e-commerce firms have the greatest share of China's market, with foreign companies having a comparatively small presence. The expansion of e-commerce in China has resulted in particular e-commerce patterns like the development of Taobao villages and livestreaming e-commerce.

E-commerce in China is regulated through a variety of means, particularly China's 2018 E-Commerce Law.

E-commerce patterns

Since 2013, China is the world's largest e-commerce market. ^{[1] : 99} Its domestic e-commerce market was an estimated US$899 billion in 2016. ^[2] China accounted for 42.4% of worldwide retail e-commerce in that year, the most of any country. ^{[3] : 110}

Domestic companies like Alibaba, JD.com, and Pinduoduo have the largest share of China's e-commerce market. ^{[1] : 99} Foreign companies like Amazon and EBay have not gained significant shares in the market. ^{[1] : 99}

The expansion of e-commerce in China has resulted in the development of Taobao villages, clusters of e-commerce businesses operating in rural areas. ^{[3] : 112} Because Taobao villages have increased the incomes or rural people and entrepreneurship in rural China, Taobao villages have become a component of rural revitalization strategies. ^{[4] : 278}

Livestreaming e-commerce in China was initiated by fashion e-commerce platform Mogujie in 2016. ^[5] In the same year, it was picked up and gradually made popular by Alibaba, who turned live commerce into a fixture in its annual Singles' Day shopping festivals. ^[6]

History

In 2015, the State Council promoted the Internet Plus initiative, a five-year plan to integrate traditional manufacturing and service industries with big data, cloud computing, and Internet of things technology. ^{[1] : 44} The State Council provided support for Internet Plus through policy support in area including cross-border e-commerce and rural e-commerce. ^{[1] : 44}

Regulatory framework

In 2004, China passed an Electronic Signature law which was based largely on the United Nations model. ^{[1] : 99} The law encouraged the use of electronic signatures in e-commerce. ^{[1] : 99}

China passed its E-Commerce Law in 2018 following five years of significant debate among numerous stakeholders. ^{[1] : 99} Chinese policymakers encouraged wide participation in the legislative process, including seeking input from a wide variety of non-state actors including private tech businesses. ^{[1] : 99} The E-Commerce Law, along with other regulatory provisions relevant to e-commerce, is part of the broader mandate of the State Administration for Market Regulation. ^{[1] : 114}

The E-Commerce Law, along with the Consumer Protection Law, require e-commerce platforms to take proper action if they are aware or should be aware of fraudulent online behavior by merchants, including the sales of fraudulent goods. ^{[1] : 207} If merchants are found to have sold counterfeit goods, the Consumer Protection Law imposes a penalty of three times their value to compensate consumers. ^{[1] : 207} If platforms have prior knowledge of counterfeit goods being sold, then the E-Commerce Law makes them jointly liable with merchants engaged in sale of such goods. ^{[1] : 231} These risks also prompted platforms to take a stricter view towards shanzhai products. ^{[1] : 231}

In 2019, the city of Hangzhou established a pilot program artificial intelligence-based Internet Court to adjudicate disputes related to e-commerce and internet-related intellectual property claims. ^{[7] : 124}

China prohibits the practice of review brushing, which is regarded under e-commerce laws and regulations as a form of false advertising. ^{[1] : 197}

See also

• Conversational commerce
• Digital economy
• Internet in China
• Shein
• Taobao
• Timeline of e-commerce
• Tmall
• Types of e-commerce
• Vipshop
• Xiaohongshu
• E-commerce in other Asian counties:
  • E-commerce in India
  • E-commerce in Pakistan
  • E-commerce in Southeast Asia
• E-Commerce elsewhere in the Global South:
  • E-commerce in Mexico

References

1. Zhang, Angela Huyue (2024). High Wire: How China Regulates Big Tech and Governs Its Economy. Oxford University Press. ISBN   9780197682258.
2. Millward, Steven (18 August 2016). "Asia's ecommerce spending to hit record $1 trillion this year – but most of that is China" . Tech in Asia . Archived from the original on 19 August 2016. Retrieved 4 May 2021.
3. Hu, Richard (2023). Reinventing the Chinese City. New York: Columbia University Press. ISBN   978-0-231-21101-7.
4. Yang, Saidi; Wang, Puqing; Zhou, Deyi (2021). "Transformation and Development of Taobao Village in China Based on "Zhijiang Mode"". Proceedings of the 2020 3rd International Seminar on Education Research and Social Science (ISERSS 2020). Paris, France: Atlantis Press. doi: 10.2991/assehr.k.210120.053 . ISBN   978-94-6239-316-5.
5. Sun, Henan. "Chinese fashion e-retailer Mogu banks on live streaming to revive fortunes". KrASIA. 31 August 2019. Retrieved on 14 December 2021.
6. Arora Arun, Glaser Daniel, Kim Aimee, Kluge Philipp, Kohli Sajal, and Sak Natalya. "It’s showtime! How live commerce is transforming the shopping experience". McKinsey & Company . 21 July 2021. Retrieved on 14 December 2021.
7. Šimalčík, Matej (2023). "Rule by Law". In Kironska, Kristina; Turscanyi, Richard Q. (eds.). Contemporary China: a New Superpower?. Routledge. ISBN   978-1-03-239508-1.