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China Passes E-commerce Law: Implications for CBEC

On August 31st China passed its first ecommerce law. The new legislation strengthens IP protection for brands and increases the responsibilities of online platforms particularly with respect to their accountability for the authenticity, safety and quality of goods sold on their platforms. The new law has not clarified the exact requirements for cross-border ecommerce which are expected to be detailed in a pending administrative rule specifically developed to regulate CBEC.

In recent years, complaints and negative reports related to the safety, quality and authenticity of goods traded through cross-border ecommerce (CBEC) have increased. The top 5 product categories ranked by total complaints are: milk powder, food, diapers, health foods, and cosmetics, according to statistics collected by State Administration for Market Regulation (SAMR).

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