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New E-commerce Law in China to increase opportunities through Cross-Border E-commerce

In November 2018 the Chinese Ministry of Finance has announced a new E-commerce Law, which also includes a set of regulations affecting Cross-Border E-commerce. The new policy was introduced after Chinese president Xi Jingping pledged to boost China's imports at the China International Import Expo (CIIE) in Shanghai, aiming to transform the country from an export-driven economy to an import-driven economy. The new E-commerce law is implemented starting from 1 January 2019 onwards.

This new policy offers several additional opportunities for western companies considering to sell their products through Cross-Border E-Commerce (CBEC) directly to the Chinese consumer. There are mainly three important changes to the CBEC regulations:

  1. 63 new product categories were added to the positive list for CBEC. The newly allowed categories include beer, sparkling wine, health care products and fitness equipment.
  2. The amount per single transaction has increased from RMB2000 (approx. EUR255) to RMB5000 (approx.EUR640).
  3. Chinese consumers will be allowed to spend up to RMB 26,000 (approx. EUR3320) instead of the RMB 20,000 (approx. EUR2550) per year before.

A few years ago the Chinese government has implemented a separate tax and duty system which applies to CBEC trade. According to this policy, products can be sold to the Chinese consumer with a different set of regulations than normal trade regulations. For more information about CBEC, please check our blog at the following LINK or contact us directly.

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