Beijing, July 4 - The State Administration for Market Regulation and the Ministry of Commerce have initiated a public consultation on the drafted "Amendment to the E-commerce Law of the People's Republic of China (Draft for Solicitation of Comments)".
Officials from the online supervision department of the market regulator and the e-commerce department of the commerce ministry addressed questions regarding the proposed changes to the law.
Key Rationale for the Amendments
The primary considerations for revising the E-commerce Law are multifaceted. Firstly, it aims to foster win-win development between platform enterprises and the businesses and workers operating within them. As pivotal entities in the platform economy with significant social attributes, there is a need to legally reinforce their social responsibilities to better balance the interests of all parties and provide a legal framework for healthy growth.
Secondly, the amendments seek to maintain a fair competitive market environment. Given that e-commerce platform operators play a dual role as both market participants and managers, it is necessary to refine the legal liability framework, clarify their primary responsibilities, and encourage compliance to foster a positive online marketplace.
Thirdly, the revisions are intended to promote high-quality economic development. A standardized and orderly market is crucial for the healthy operation of all entities in the platform economy. The amendments aim to establish robust supervision mechanisms and enhance regulatory effectiveness at the legislative level. This will guide market participants to shift focus from pursuing sheer traffic volume to innovation-driven growth, and from competing on price to competing on quality, thereby better fostering new quality productive forces.
Fourthly, the changes are designed to support high-level opening-up. As a key area for steadily expanding institutional openness and a significant player in global digital economy competition, the e-commerce sector requires legal updates. The amendments will introduce provisions on open cooperation, industry self-regulation, external countermeasures, and dispute resolution to further open up the sector and create a favorable legal environment for Chinese e-commerce ventures expanding overseas.
Guiding Principles for the Revisions
The amendments are guided by several core principles. The first is a people-centered approach, focusing on practical issues to protect the rights of workers in new employment forms, small and medium-sized operators on platforms, and consumers, promoting mutual benefit and cooperation.
The second principle is proportionality in penalties, establishing a multi-tiered legal liability system with graduated sanctions to ensure punishments match the severity of violations, making legal accountability fairer and more reasonable.
The third is systematic governance, aiming to build a coordinated, multi-party platform economy governance system, strengthen industry self-discipline, and enhance integrated online-offline supervision with a tiered regulatory model.
The fourth principle is internal-external connectivity, which involves aligning with high-standard international trade rules, expanding open cooperation, deepening rule alignment, authorizing external countermeasures, assisting enterprises in smooth overseas expansion, safeguarding their legitimate rights, and enhancing the international competitiveness of China's e-commerce sector.
Main Content of the Proposed Amendments
The draft amendments primarily encompass five areas. First, expanding the law's scope to clarify the rights and obligations of other participants in the platform economy beyond the current focus on platforms and their internal operators.
Second, improving the platform responsibility system by enriching regulatory tools beyond the existing fixed fines and operational suspension orders to support常态化 supervision.
Third, clarifying a coordinated regulatory工作机制. In response to the cross-border and mixed operations of the platform economy, the amendments add the principle of consistent oversight for online and offline business lines, strengthening integrated supervision through inter-departmental and central-local coordination.
Fourth, regulating prominent e-commerce violations by amending corresponding clauses to address issues of strong public concern in practice, effectively responding to societal needs.
Fifth, deepening e-commerce open cooperation by promoting alignment of rules, regulations, management, and standards with international norms, strengthening industry self-discipline, guiding orderly overseas expansion, adding external countermeasures, and protecting the legitimate rights and interests of enterprises.
Next Steps for the Legislative Process
Moving forward, the State Administration for Market Regulation and the Ministry of Commerce will refine the draft amendments based on feedback from the public consultation. They will then work to expedite the passage of the revised E-commerce Law to lay a solid legal foundation for innovation and the healthy development of the platform economy.
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