New Guidelines Encourage Cross-Border E-Commerce in China
June 22, 2015
While the U.S. and China skirmish over whether the network intrusion at the U.S. Office of Personnel Management was the work of a Chinese counterintelligence group, as Reuters reported on Friday, China remains full speed ahead making cross-border e-commerce easier for those inside and outside the country. On Saturday, China’s State Council released new guidelines it said will make the country’s procedures for e-commerce imports and exports simpler and quicker. The new guidelines will reformulate taxes, keeping tax on online purchases being exported low while using tax policy on imports to increase domestic consumption and promote competition between e-commerce companies.
The guidelines, according to a statement on the Chinese government’s official website, also provide for government support for e-commerce firms—both public and private—engaged in international projects and expansion.
In a separate announcement on Friday by the country’s Ministry of Industry and Information Technology, China will allow full foreign ownership of some e-commerce businesses in an effort to foster more competition and grow the industry in China.