China’s State Council Announces Measures to Encourage E-Commerce
May 12, 2015
The State Council, China’s cabinet, announced guidelines late last week it hopes will pave the way for faster e-commerce growth. According to published reports in China, the paper said e-commerce can remain a driver in a slowing Chinese economy, but steps need to be taken to create a favorable environment.
Li Keqiang, premier of the State Council, traveled to Beijing’s high-tech hub of Zhongguancun and home to many of China’s flourishing e-commerce startups, to announce measures that will catalyze growth in the segment. In the paper, the State Council said it would abandon strict registration requirements for e-commerce businesses, encourage more venture capital investment in the sector, reduce restrictions on foreign investment, lower the tax burden and study policies encouraging qualified Internet businesses to pursue domestic stock market listings.
The paper also pledged to reduce logistical costs, strengthen infrastructure and do more to encourage brick-and-mortar businesses to engage in omnichannel commerce.