China Changes Market Rules for Foreign Companies


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To enter into the e-commerce market in China, it has long been that foreign companies had a very difficult time getting established into the market. In most cases, these foreign companies may have used their name, but totally relied on a figure head in China, native to the area, who could handle the business ends of the deal there. The reason being is that working in China was completely different than working in other areas of the world. However, the days of China not accepting as many foreign companies is gone.

After years of rules, the Chinese Ministry of Industry and Information Technology has announced that online data processing and transaction processing segment of foreign investment is open online. Meaning that a foreign company will have less hoops to go through in order to get established onto this rising e-commerce market.

Why Open the Market Now?

The main question on everyone’s mind is just why is China opening up their e-commerce market now to foreign investors with little trouble. The reason that the Chinese Ministry of Industry and Information Technology stated China wanted to increase the competition on the market, while also driving up the standards of products for Chinese consumers. As most people realize, Chinese consumers want products that are high quality, yet that are affordable. With opening up the market to make it easier to enter, the e-commerce market is going to see a huge increase in competitors, thus Chinese consumers will have more options as to where to buy and what to buy.

The future of e-commerce in China is getting brighter. For consumers, they are going to see a change in just how the market works, and chances are this is going to result in happier shopping experiences while online.

About Author

Social Brand Watch (SBW) is a collection of experts in digital, mobile and social media in China. SBW was created to complement Resonance's China Social Branding Report, a bi-weekly report focusing on modern marketing methods of the world's top brands in China.

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