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China issues ecommerce rules after EU concerns

China issued new guidance for its ecommerce sector to better align domestic development with overseas markets.

The move came about a week after EU lawmakers raised concerns during a visit to China over unsafe goods entering Europe and limited access to China’s market.

The guidance from the commerce ministry and other regulators called for a balance between growth and oversight and proposed pilot zones for cross-border ecommerce plus new standards and support for overseas expansion.

The EU agreed last month to tighten its customs system and crack down on mostly Chinese platforms that could face fines if they sold illegal or unsafe products amid broader strains over trade imbalances, Russia, and rare earth export controls.

🔗 Source: Reuters

🧠 Food for thought

Implications, context, and why it matters.

The ‘pilot zones’ build on China’s established Cross-Border E-commerce (CBEC) framework, which offers preferential import and tax treatment

  • New guidance builds on China’s long-running Cross-Border E-commerce (CBEC) channel, which sits outside general trade 1.
  • Goods on the official “positive list” can enter through designated CBEC pilot areas via bonded warehouses (where imported goods can be stored without immediately paying duties) or direct mail 1. These CBEC retail imports are treated as personal-use goods, so they are generally exempt from customs import licenses and do not require registration or notification 1.
  • Buyers get lower taxes within policy caps of 5,000 yuan (US$730) per transaction and 26,000 yuan (US$3,800) per person per year 1. Import tariffs are waived, while VAT (value-added tax) and consumption tax are cut by 30% 1. An indivisible item above 5,000 yuan (US$730) can still use CBEC if it stays within the annual cap, though it faces full tax 1.

China’s ecommerce platforms could face expanded liability under the EU’s planned customs overhaul

  • The EU plan would treat online platforms that sell goods from non-EU countries to EU customers as importers 2. That shift would make them handle customs data, pay taxes, and check that goods meet EU law 2.
  • Safety enforcement sits behind the change. A 2024 French investigation found over 60% of toys checked on foreign platforms posed a major risk, versus 8% at traditional retailers 3.
  • The overhaul adds a 3 euros (US$3.5) handling fee for each item shipped straight to EU consumers from non-EU countries 2. Collection starts once the IT system is ready and no later than Nov. 1, 2026 2. Platforms that fail to comply could face fines from 1% to 6% of the total value of goods they imported into the EU in the prior 12 months 2.

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