New E-Commerce Law Comes Into Effect Next Year

Dong Ximiao, a senior researcher at the Renmin University of China's Chongyang Institute for Financial Studies, says the new law lays out the duties of online retailers and outlines a list of potential punishments for malpractice, the Party news portal People’s Daily reports. 

Vendors who sell products which endanger human health, for example, will be ordered to take action or halt business within a specified period, and fined a maximum of 2 million yuan (US$292,000).　　　

However, some experts have been less effusive, predicting the law will have a chilling effect on smaller online businesses. For instance, Chu Yin, deputy dean of the Digital Economy Research Institute, told the economic news portal Mycaijing.com.cn that if the supervision is too strict, the further development of e-commerce will be constrained.