The Chinese market regulator and the Ministry of Commerce have jointly drafted a revised version of the e-commerce law, which is now open for public feedback. This move sends a clear signal that equal emphasis is being placed on regulation and development. Stricter laws and regulations will not only provide consumers with stronger legal protection but also inject more legal momentum into the standardized and healthy growth of the platform economy.
Thanks to the rapid development of digital platforms, the platform economy has become deeply integrated into the entire chain of production, distribution, and consumption. It plays a crucial role in expanding domestic demand, stabilizing employment, and promoting industrial transformation, serving as a key engine for economic development.
However, as the scale of the platform economy continues to expand and new business models rapidly evolve, existing laws and regulatory frameworks no longer align with the actual needs of the industry. The current e-commerce law, which came into effect in 2019, primarily addresses traditional e-commerce models like shelf-based online retail and lacks provisions for emerging formats such as live-streaming e-commerce. In terms of penalties, the law imposes relatively limited sanctions on platforms, including fixed fines capped at 2 million yuan and business suspension orders. These measures are insufficient for addressing the diverse governance needs of platforms of different sizes and with varying degrees of violations.
Recent issues such as "ghost kitchens" and subsidy wars have sparked widespread public concern, highlighting gaps in legal constraints within the sector. With emerging risks like algorithm misuse, data monopolies, and cross-sector disorderly competition, there is an urgent need to update and refine the legal and regulatory framework for e-commerce.
The purpose of revising the law is not to restrict platform companies but to ensure stricter supervision, precise penalties, and proportionality in enforcement. This will help maintain order in online transactions and protect the legitimate rights and interests of all parties involved. At the same time, legal measures will better align with the needs of high-quality development in the platform economy. For instance, the revised draft proactively aligns with high-standard international trade rules and introduces provisions for countermeasures against foreign entities. Such measures will help safeguard Chinese companies as they expand globally, ensuring that the rule of law injects strong momentum into the healthy development of the platform economy.
The rule of law is the cornerstone of a favorable business environment. It is hoped that all sectors of society will seize this opportunity to contribute suggestions and build consensus, fostering fair competition and integrity in the e-commerce sector. This will ensure that the benefits of the platform economy are more widely shared among the public.
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