China Further Promotes E-Commerce Development

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Jun. 11 – China’s National Development and Reform Commission (NDRC), the Ministry of Finance (MOF), and 11 other departments jointly released the “Circular on Further Promoting the Sound and Rapid Development of E-Commerce (fagaibangaoji [2013] No. 894, hereinafter referred to as the ‘Circular’)” on April 15, 2013, which puts forward 14 measures to promote the development of the E-commerce industry in the country. Detailed information can be found below.

The Circular

Promoting the construction of a supportive environment for E-commerce development
The NDRC shall improve the inter-departmental coordination mechanism that facilitates the healthy and rapid development of the E-commerce industry, and shall carry out consultancy guidance, supervision and assessment over E-commerce pilot projects.

Promoting pilot projects on digitizing accounting archives for E-commerce enterprises
The MOF shall organize a pilot program to manage electronic accounting files and revise the “Administrative Measures for Accounting Files.” Moreover, it shall popularize the application of electronic accounting files in the E-commerce sector.

Facilitating the innovative development of E-commerce in commerce and trade circulation
The Ministry of Commerce (MOC) shall further improve pertinent policies, management systems and standards concerning E-commerce transactions, logistics and distribution, as well as online auctions. Moreover, the MOC shall speed up the establishment and improvement of a unified and efficient commercial and trade circulation statistics system and an E-commerce statistics system.

Improving E-commerce customs clearance services for cross-border trade
The General Administration of Customs shall work together with relevant departments to further improve E-commerce customs clearance services for cross-border trade and promote the sharing of record-filing information on E-commerce enterprises involved in foreign trade.

Accelerating the application of web (electronic) invoices
The MOF and the State Administration of Taxation (SAT) shall study the taxation policies and related management systems and standards applicable to E-commerce in cross-border trade. Both departments shall continue to conduct research on the taxation administration system for E-commerce enterprises, improve the management systems and information standards for web (electronic) invoices, and expand the adoption of web (electronic) invoices in various fields.

Promoting the construction of a credible E-commerce transaction environment
The State Administration of Industry and Commerce (SAIC) shall strengthen the formulation of regulations and rules governing online product transactions and services, and work together with relevant departments to study the establishment of a credit indicator system for online business operators.

Establishing and improving the E-commerce product quality and safety supervision mechanism
The General Administration of Quality Supervision, Inspection and Quarantine (AQSIQ) shall, in conjunction with the SAIC and other relevant departments, study the measures to push forward the construction of a credit system for E-commerce product quality. The AQSIQ shall also work together with the State Post Bureau (SPB) to explore the establishment of an inspection and quarantine regulatory model for E-commerce mail and express shipments under cross-border trade.

Promoting the innovative development of mobile E-commerce payment
The People’s Bank of China shall study and formulate development policies for mobile financial payments, push forward the construction of a management system for safe and credible mobile financial payment services, and establish a mobile payment information security system.

Improving the express delivery service system for E-commerce
The SPB shall explore the establishment of a mechanism to circulate information on the punctuality rate of express deliveries in key regions, improve safeguarding measures for E-commerce distribution during peak seasons, and innovate the urban E-commerce express delivery service mechanisms. It shall also cooperate with the GAC, the AQSIQ and other departments concerned to improve the management of E-commerce mail and express shipments for cross-border trade.

Facilitating E-commerce standardization
The Standardization Administration shall restructure the overall grouping of E-commerce standardization, as well as set up and improve the system of national E-commerce standards.

Promoting the development of agricultural E-commerce
The Ministry of Agriculture shall study and formulate the classification and grading standards for agricultural products, expand E-commerce application in agricultural fields, and launch relevant pilot projects.

Boosting E-commerce development in the forestry fields
The Forestry Administration shall, based on the E-commerce model, study and formulate administrative measures for assessment of forest assets, transfer of regional forest resources and trading of forest rights.

Boosting the development of tourism E-commerce
The National Tourism Administration shall,work together with the SAIC to promote the construction of a credible transaction system for tourism E-commerce and expand the application of electronic contracts in tourism services.

Accelerating the cultivation of a supportive environment for E-commerce development
Shenzhen, Beijing and another 21 national E-commerce model cities shall continue to execute the model-city project and explore new mechanisms and policies to support E-commerce development.

12th Five-Year Plan

China’s E-commerce trade volume reached RMB8.1 trillion in 2012, up 31.7 percent from 2011. According to the 12th Five-Year Plan for E-commence Development, the contribution of the E-commence industry to the national economy shall be significantly improved by 2015, specifically:

  • E-commerce turnover shall be doubled and exceed RMB18 trillion by 2015, with the inter-enterprise E-commerce turnover surpassing RMB15 trillion.
  • Corporate online purchases and sales shall account for more than 50 percent of the total purchase amounts and 20 percent of the total sales amounts by 2015.
  • The number of small and medium-sized enterprises that utilize E-commerce regularly shall account for more than 60 percent of the total number of small and medium-sized enterprises by 2015.
  • The turnover of online retail shall top RMB3 trillion by 2015, accounting for more than 9 percent of the total retail sales of consumer goods.
  • The level of E-commerce services shall be significantly improved, and an array of internationally-influential E-commerce enterprises and service brands will emerge by 2015.

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