China Rewrites E-commerce Law to Tighten Platform Rules and Shield Companies Abroad
China is rewriting its e-commerce law to tighten platform rules domestically and shield its companies abroad. The draft amendments include:
- New regulatory tools for overseeing giants like Alibaba, JD, and Meituan.
- "Countermeasures" to protect Chinese platforms facing tariffs and fines in the US and EU.
Key Points
- Draft amendments proposed with 20 provisions expanding platform regulation and covering a wider range of digital economy participants.
- Open for public consultation until August 4, 2026.
- Timing coincides with increased scrutiny on e-commerce giants both domestically and internationally.
What the Amendments Would Change
The original e-commerce law (effective Jan 2019) primarily focused on platform operators and merchants. The new draft:
- Expands oversight to AI shopping agents, logistics providers, payment processors, and data infrastructure.
- Introduces "routine oversight" mechanisms and greater inter-departmental coordination.
Domestic Context
- Driven by China's 15th Five-Year Plan (2026-2030), emphasizing stronger oversight of platform companies' data, algorithms, traffic rules, and practices.
- Recent fines on Alibaba, JD.com, PDD Holdings, Meituan, and Douyin for various violations.
- "Anti-involution" campaign against aggressive price competition.
Overseas Shield
The most novel provisions concern:
- International cooperation
- "Countermeasures" to protect the "lawful rights and interests" of Chinese enterprises abroad, specifically referencing fines like the €200 million Temu was hit with under the EU's Digital Services Act.