China Proposes E-commerce Law Amendments

China has released draft amendments to its e-commerce law, aiming to tighten platform regulation domestically and shield its companies from foreign tariffs and fines. The 20 provisions, jointly issued by the State Administration for Market Regulation and the Ministry of Commerce, are open for public consultation until August 4.

The proposed changes mark a significant shift from the original e-commerce law, which focused primarily on platform operators and merchants. The amendments would extend regulatory oversight to all participants in the 'platform economy', including AI-powered shopping agents, logistics providers, and payment processors.

The move comes as China's e-commerce giants face increasing scrutiny at home and abroad. Temu and Shein, two prominent Chinese e-commerce companies, have been facing tariffs and fines in their largest export markets. The amendments aim to provide 'countermeasures' to protect these companies from foreign regulatory actions.

The draft amendments propose new regulatory tools beyond fixed fines and business suspension orders, including 'routine oversight' mechanisms. While the changes aim to strengthen domestic regulation, they also raise concerns about the potential impact on foreign businesses operating in China.