“Keep Calm and Carry On”: Keeping up with China’s changing rules for cross-border e-commerce
摘要
China cross border e-commerce has grown by leaps and bounds in the last 2 years since the use of bonded zones. Just as everything was going so well, suddenly major concerns surfaced about the very future of cross border e-commerce in China. These concerns were due to a raft of regulations that were issued in April 2016 by a number of Chinese regulators. Although their motivations have not been publically announced it is likely that the PRC authorities are not seeking to stop cross border e-commerce but rather to better regulate and increase taxes from it. The new regulations do not signal a desire to close down cross border e-commerce. Rather as cross border e-commerce became big business it was difficult for the authorities to ignore that many international companies used the model to sell commercial quantities of product into China that bypassed PRC standards and minimized tax. As cross border e-commerce grew it was always expected that regulation would be on its way. Accordingly for most companies the expectation was that change to the current system was not a question of if but when. Unfortunately, the regulations that have been issued are vague and have been issued by a variety of regulators so that there may be co-ordination issues in respect of implementation. Accordingly the new regulations have sparked both many questions and much fear.
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