We received many questions from clients and readers asking about the effects of the new e-commerce regulation in China that became effective from January 1st, 2019. Many worry that individuals will no longer be able to run WeChat stores anymore and that daigous will no longer operate their Taobao stores.

We look into the regulation and here is the summary:

• You will need to provide a business license in order to operate an online store (including Taobao, WeChat store, and Weidian), with few exceptions including “low-value transaction” as stated in Article 10
• The lawmaker has not determined the exact amount of “low-value” thus until the threshold is announced, all individual stores can operate normally as before
• Individuals can still register a personal WeChat store/Taobao store

Major e-commerce platforms have made announcements and policy updates after the regulation. Click HERE to see the announcements. (Source: WalkTheChat)

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