In an effort to jumpstart China’s slowing economy, China’s State Council recently announced new guidelines to encourage the growth of the country’s ecommerce business sector.
Li Keqiang, premier of the State Council, shared a list of steps the Chinese government plans to take to open the door for more ecommerce business opportunities in China. They are:
- Abandon rigid registration requirements for online retailers
- Encourage venture capital investment in the ecommerce sector
- Reduce shareholding restrictions on foreign investment
- Lower the tax burden
- Study policies encouraging online businesses to pursue domestic stock market listings
- Reduce logistical costs
- Strengthen infrastructure
- Encourage omnichannel commerce
On the other end of the spectrum, the government is also taking pains to ensure Chinese consumers feel confident about buying online. It’s doing so by promising to improve law enforcement, protect consumer rights, bring down the hammer on online fraud and maintain online transaction security.
The State Council’s efforts to create these guidelines demonstrates how invested the country is in the ecommerce market. According to the China E-Commerce Research Center (CECRC), ecommerce in China grew a solid 49.7 percent in 2014. So, it’s no wonder China is remaining confident and faithful to the industry.
While Chinese ecommerce is currently dominated by Alibaba, the market as a whole has been developing rapidly to become a driving force for the country’s economy. With these new initiatives, it’s clear the Chinese government has confidence that more companies will soon be eager to join in on the action.