E-commerce has become a dominant commercial channel in China, and the legal framework governing online commerce is comprehensive and strictly enforced. The E-Commerce Law of the People's Republic of China, effective January 1, 2019, applies to all businesses selling products or services online in China, including foreign-invested e-commerce enterprises operating in Zhangzhou and throughout Fujian Province. Understanding the compliance obligations under this law is essential for avoiding regulatory penalties and maintaining the ability to operate in the Chinese market.

Key Provisions of the E-Commerce Law

The E-Commerce Law establishes a comprehensive regulatory framework for all e-commerce activities in China. The law defines e-commerce business operators broadly to include platform operators, merchants selling on platforms, and self-operated e-commerce websites. All e-commerce operators must obtain a business license and display it prominently on their online storefront. The requirement to display the business license applies regardless of whether the seller is a domestic or foreign-invested enterprise, and failure to display the license can result in fines of up to 10,000 RMB for the first offense and up to 30,000 RMB for subsequent offenses.

The law imposes specific consumer protection obligations on e-commerce operators. The most significant of these is the seven-day no-questions-asked return policy, which gives consumers the right to return most products within seven days of receipt without providing a reason. Exceptions to the return policy apply to customized products, perishable goods, downloadable digital products, newspapers and periodicals, and other categories specified by law. E-commerce operators must clearly inform consumers of the return policy and the exceptions before the consumer completes the purchase. The operator must process the refund within seven days of receiving the returned product, and the consumer must bear the cost of return shipping unless the operator has agreed otherwise.

• ⚖️ Business license display: Must be clearly visible on all online sales channels
• 🛡️ Seven-day return policy: Mandatory for most products; limited exceptions
• 📜 Transaction record retention: Minimum three years of complete records
• 💼 Product authenticity: Operator liability for counterfeit or substandard goods

Platform Operator Obligations

E-commerce platforms operating in China face significant legal obligations under the E-Commerce Law. Platform operators must verify the identity of merchants operating on their platforms, including their business licenses, contact information, and tax registration details. The platform must maintain records of merchant identity information for at least three years after the merchant ceases to operate on the platform. Platforms are also required to establish mechanisms for the protection of intellectual property rights, including procedures for rights holders to submit infringement complaints and for merchants to submit counter-notifications.

The E-Commerce Law also prohibits platform operators from engaging in anti-competitive practices. Article 22 of the law prohibits platform operators from using their market position to require merchants to choose only one platform exclusively, a practice known in China as er xuan yi, unless the practice is otherwise justified under competition law. The prohibition against forced exclusive dealing has been actively enforced by the State Administration for Market Regulation, with major platform operators facing significant fines for violations.

Cross-Border E-Commerce Rules for Zhangzhou Businesses

Zhangzhou businesses engaged in cross-border e-commerce face additional regulatory requirements beyond domestic e-commerce law. Cross-border e-commerce retail imports are governed by the regulatory framework established by the Ministry of Commerce and the General Administration of Customs. Qualifying goods must be listed on the Cross-Border E-Commerce Retail Import Positive List, and individual transactions are subject to a single transaction limit of 5,000 RMB and an annual cumulative purchase limit of 26,000 RMB per individual. Goods that qualify for the cross-border e-commerce retail import channel benefit from reduced tariff rates, with the import VAT and consumption tax levied at 70% of the statutory rate.

The Customs authorities in Fujian have established a dedicated cross-border e-commerce clearance system at the Fuzhou Customs District, which covers Zhangzhou and other cities in southern Fujian. The system allows for electronic data exchange between e-commerce platforms, logistics companies, payment institutions, and customs authorities, enabling paperless declaration and expedited clearance for qualified shipments. Merchants engaged in cross-border e-commerce must maintain proper records of all transactions, including the order information, payment records, logistics tracking, and customs declaration documents, for at least three years. Attorney Wang advises Zhangzhou e-commerce businesses to implement comprehensive compliance protocols that address both domestic e-commerce law and cross-border trade regulations, and to conduct regular compliance audits to identify and address regulatory gaps.

For businesses in Zhangzhou and the broader Fujian region, compliance with both Chinese e-commerce law and international trade regulations is particularly important given the province's role as a major export hub. Businesses should ensure that their online sales channels, whether through Chinese platforms like Taobao and JD.com or through their own websites, comply with all applicable requirements. Attorney Wang recommends that e-commerce businesses engage qualified legal counsel to review their online sales practices, develop appropriate terms and conditions, and implement compliance procedures that address the full scope of their e-commerce operations.