China to cut e-commerce red tape, back entrepreneurship and ease market access
New State Council guidelines are third time in a week that central authorities have promised to nurture growth of online businesses amid the economic downturn
The State Council has pledged to help the development of e-commerce by cutting red tape, supporting entrepreneurship, and easing market access.
New e-commerce guidelines were published in a paper released by China’s cabinet on Thursday night – the third time in a week central authorities have promised to nurture the growth of online businesses amid the economic downturn.
The move came as Premier Li Keqiang made a tour of Zhongguancun, Beijing’s high-tech business hub, to applaud innovation and encourage entrepreneurship.
The State Council paper promised to abandon strict registry requirements for e-commerce businesses, encourage more venture capital to enter the sector, reduce share-holding restrictions on foreign investments and lower the tax burden.
It also plans to reduce logistical costs, strengthen financing and infrastructure, and turn bricks-and-mortar stores into click-and-mortar – both online and offline – platforms.
The government also aims to increase consumer confidence in e-commerce by improving consumer rights, cracking down on online fraud, increasing security, and improving legal protection.
Last year, Chinese consumers purchased online goods and services worth 2.8 trillion yuan (HK$3.5 trillion) – an increase of 49.7 per cent compared with 2013, said China’s National Bureau of Statistics.