Since 2022, the complexity, severity and uncertainty of China’s  development environment have increased, bringing certain challenges to the production and operation of foreign enterprises in China. Despite the grim and complex situation at home and abroad, China’s safe and stable social and economic environment, steady growth of macroeconomic fundamentals, continuous improvement of industrial chain and supply chain system, accelerating consumption and industrial upgrading, and increasingly large domestic market scale have become the basic conditions for the long-term and sustainable growth of foreign investment in China. So how can foreign enterprises develop e-commerce in China?

When foreign enterprises enter China’s e-commerce market, the handling of ICP license is a top priority.

Before opening e-commerce business, enterprises must apply to relevant Chinese departments for ICP license. At present, according to the requirements of relevant laws and regulations, pure foreign enterprises are not allowed to apply for ICP license, and foreign investors need to meet the following conditions when applying for ICP license:

1 The applicant company is a company legally established in China, and its legal representative shall be a citizen of Chinese Mainland and hold a Chinese resident identity card.

2. the foreign capital holding of a Sino foreign joint venture shall not exceed 50%, and the shareholders shall not be foreign capital.

3. if the company is established by the operator according to law, the registered capital shall be 1million yuan or more.

4. documents involving the information service content requiring pre-approval specified in the ICP management measures and having obtained the consent of relevant competent departments.

5. improve network and information security measures, including website security measures, information security and confidentiality management system, and user information security management system.

6. have funds and professionals to develop business activities.

7. have business development plan and relevant technical solutions. If a foreign-funded enterprise wants to enter the e-commerce market, it can cooperate with domestic enterprises.

When foreign enterprises to enter China’s e-commerce market,  Import and export rights are needed

The full name of import and export right refers to the right to independently operate import and export. Import and export right refers to the qualification of import and export enterprises to carry out import and export business. Applying for the import and export right requires a complicated approval process. After obtaining various certificates, it means that the company has the right to self operate import and export.

Only enterprises with import and export rights can independently engage in import and export business according to law. The foreign-capital enterprise itself has the import and export qualification, but it is only limited to the import of equipment and raw materials used for production and the export of the company’s products, and cannot arbitrarily expand the business scope of import and export products. If you want to operate beyond the scope of import and export, you also need to handle the right of import and export.

Requirements for handling the export right:

1. The commerce bureau handles the filing and registration of foreign trade operators;

2. The customs handles the customs declaration and registration of import and export consignees and consignors;

3. The inspection and quarantine bureau handles the registration and filing registration;

4. Beijing Customs handles the E-port card;

5. Go to the foreign exchange administration bureau to handle the opening of foreign exchange accounts for current accounts of domestic institutions and the verification and cancellation registration of import (export) foreign exchange receipts;

6. Go to the local state tax bureau to handle the export tax rebate

When foreign enterprises to enter China’s e-commerce market, network culture operation licenses are indispensable

“Network culture business license” is the relevant qualification certificate that must be obtained for the operation of Internet cultural products and Internet cultural activities. Operational Internet cultural activities refer to the theme activities that aim to make profits, obtain rights and interests according to Internet customer charging standards or network technology, advertising, name sponsorship, etc., and display Internet cultural products and service items.

When foreign enterprises enter China’s e-commerce market, brand protection should not be slack

Due to the various value-added effects of the brand, more and more imitation brands and counterfeiting appear on the market. In order to protect the interests of enterprises and products, legal means and various measures need to be used. To protect the brand from being infringed, it is also necessary to ensure that Brands can continue to bring maximum benefits to enterprises.Apply for a trademark before the enterprise does business to protect its own brand. Prevent others from maliciously using the brand for publicity, and avoid their own unconscious infringement. Enterprises can operate and protect intellectual property rights from the aspects of trademarks, copyrights, patents, etc.

When foreign enterprises enter China’s e-commerce market, they pay attention to the choice of platforms

Enterprises can choose to create their own platform, but it is very difficult. It is difficult to get well-known in the early stage. Enterprises need some financial support to tide over the difficult period. If it is a foreign-funded enterprise with certain popularity and customer attention, it will be relatively simple to create its own exclusive e-commerce platform in China.

Therefore, it is recommended that foreign enterprises settle in the existing Chinese e-commerce platforms such as 1688, Taobao, Pinduoduo and jd.com according to their own commodity attributes. First, the existing e-commerce platforms have stable user traffic, and the platform drainage strategy can quickly attract customers. Second, the existing e-commerce platforms have mature  promotion strategies and activities, and there is no need for foreign enterprises to plan activities.