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Targets set to boost e-commerce growth

Updated: May 7,2015 10:24 PM

The State Council has set a goal of establishing an e-commerce market that is open, orderly and reliable by 2020; and on May 27 issued a circular asking its ministries and departments as well as provincial-level authorities to boost the development of the sector.

To boost the development of e-commerce, the State Council instructed:

* The authorities to lower the entry threshold to the e-commerce market. The authorities should review administrative approvals that companies are required to go through before they can enter the e-commerce businesses, and abolish any approval that doesn’t have legal ground. Also, the authorities should lift the limit on foreign investors’ share in Chinese-foreign e-commerce companies.

* The authorities should reduce tax in a reasonable manner and help them secure finance through diverse channels.

* The authorities should also design regulations and systems to ensure the quality of products sold on online shops as well as fair competition.

* The authorities at the provincial level should promote employment by boosting the development of e-commerce. Those who work in the industry will get favorable policies, and online shops that have registered with real identities and have a stable turnover and good reputation will be able to enjoy favorable financial policies such as micro credit.

* Schools and enterprises are encouraged to cooperate in nurturing talent in e-commerce.

* Villages and companies in rural areas are encouraged to make use of online shopping platforms to sell their products and foster their brands, which will, in turn, improve the lives of people in rural areas.

* The authorities, including the People’s Bank of China, should develop mobile finance by pushing cooperation among financial institutions, telecommunication companies and e-commerce firms, and ensure the safety of online transactions. The authorities should also encourage securities companies, insurance companies and publicly offered funds to find innovative ways to do businesses in the Internet age, and update methods to supervise the online activities of these companies.

* The State Council’s ministries should initiate bilateral or multilateral negotiations to set up an internationally-recognized assessment system of e-commerce companies and products sold online, and should improve the efficiency of clearance for products sold online.

* The ministries should encourage domestic e-commerce companies to invest abroad.

* The ministries are also instructed to ensure a safe process of e-commerce by safeguarding cyber security and online transactions.