Published by ChinaMNC · Qingcheng
China’s Tech-Driven Commerce Push: What Foreign Founders Need to Know
A practical guide for foreign founders on China’s new policy to integrate technology into commerce, covering product innovation, digital services, supply chains, and compliance.
China’s Tech-Driven Commerce Push: What Foreign Founders Need to Know
Foreign founders operating or registering a company in China should note a recent policy initiative from nine Chinese government departments aimed at accelerating technology adoption across the commerce sector. The policy, titled “Opinions on Accelerating the Revitalization of Commerce through Science and Technology,” outlines a broad framework for integrating advanced technologies into business operations. While the document is strategic in nature, it signals areas of regulatory focus and support that could affect your business planning.
Core Objectives
The policy aims to leverage technologies such as artificial intelligence (AI), big data, the Internet of Things (IoT), cloud computing, blockchain, digital twins, and embodied intelligence to make commerce more intelligent, green, and integrated. It emphasizes upgrading product consumption, expanding service consumption, improving distribution efficiency, and creating new application scenarios. For foreign founders, this means opportunities in smart manufacturing, digital services, and supply chain innovation, but also a need to align with evolving standards.
Key Measures Affecting Businesses
1. Product Innovation and Smart Manufacturing
The policy encourages the deep integration of AI in product development, design, manufacturing, and marketing. It promotes smart products such as smartphones, computers, home appliances, wearables, and robots. It also supports the development of products based on secure and reliable open-source operating systems, the revitalization of historical classic industries, and the innovation of time-honored brands using modern production technologies. Foreign companies in consumer electronics or smart hardware may find incentives to localize R&D and production.
2. Demand-Supply Matching and Customization
Flexible manufacturing models like on-demand production and consumer-to-manufacturer (C2M) are encouraged. The policy promotes AI-based personalized customization and the cultivation of influential custom brands. This suggests a growing market for made-to-order products and services, where foreign founders with expertise in flexible production or customization platforms could find partners or customers.
3. Expanding Service Consumption
Several measures target service sectors: smart home services, digital catering, AI in health management, pharmacy services, rehabilitation care, and smart elderly care and childcare. The policy also supports upgrading the national smart education platform, piloting AI in culture and tourism, promoting immersive sports viewing, and advancing ultra-high-definition audio-visual technologies. Foreign founders in edtech, healthtech, or entertainment tech should monitor local pilot programs and partnership opportunities.
4. Supply Chain and Retail Digitalization
The policy calls for developing smart supply chains using IoT, cloud computing, and blockchain, promoting automated warehouses, smart logistics equipment, and unmanned delivery. It also encourages the digital transformation of wholesale and retail, including agricultural wholesale markets, and the adoption of digital tools for store layout, inventory management, logistics, anti-counterfeiting, and after-sales service. Foreign logistics tech providers and retail solution vendors may find demand for their services.
5. E-commerce Quality and Standards
Quality e-commerce initiatives include promoting a “verify before shipping” model and strengthening quality standards, inspection, and brand building for online goods in key areas like home appliances, home furnishings, and electronics. The policy also mentions enhancing mandatory product certification (CCC) verification on e-commerce platforms and piloting CCC traceability QR codes. Foreign brands selling online in China should ensure compliance with these evolving requirements.
6. Intelligent and Green Scenarios
The policy encourages the development of commercial intelligent agents for smart shopping guides, operations, and logistics, as well as the application of embodied intelligence in home services and commercial logistics. It also promotes green business models, including carbon footprint calculation using blockchain, green shopping malls, restaurants, and logistics parks, and smart recycling. Foreign companies with green technologies or smart retail solutions could explore these areas.
7. Standards and Infrastructure
A key focus is the development of commercial technology standards, including national standards for AI terminal intelligence grading. The policy also aims to upgrade commercial infrastructure, apply industrial internet and cloud platforms in commerce, support AI startups with inclusive computing power, and build high-quality datasets and trusted data spaces. Foreign founders should be aware that standards may become more stringent, but also that infrastructure support may be available.
8. Regulatory Approach
The policy advocates a tiered governance approach for commercial intelligent agents, clarifies boundaries for data collection, use, and sharing, and explores negative lists for data applications. It also promotes inclusive and prudent regulation, allowing controlled sandbox testing for new technologies and models. This suggests a regulatory environment that encourages innovation while managing risks—foreign founders should stay informed about sandbox opportunities and data compliance requirements.
9. Talent and Financial Support
Measures include fostering interdisciplinary talent in commercial technology, supporting partnerships between universities and businesses for training, and establishing new vocational roles such as logistics robot application technicians. Financial support includes guiding financial institutions to provide funding for new consumption scenarios and technological upgrades. Foreign founders may benefit from talent development programs and financing options for tech-driven projects.
Practical Implications for Foreign Founders
If you are registering or operating a company in China, this policy signals several action points:
- Align with priority sectors: Consider how your products or services fit into smart manufacturing, digital services, green tech, or supply chain innovation.
- Monitor standards: Stay updated on commercial technology standards, especially for AI terminals and e-commerce quality requirements.
- Leverage support programs: Explore participation in pilot programs, sandbox testing, and talent initiatives.
- Ensure data compliance: Pay attention to data governance rules and potential negative lists for data applications.
- Engage with local partners: Collaborate with Chinese companies and research institutions to access new opportunities.
This policy is part of China’s broader effort to modernize its commerce sector through technology. While it does not introduce immediate new regulations, it sets a direction that could shape future incentives and requirements. Foreign founders should incorporate these trends into their China strategy.
This summary is based on information published by the relevant Chinese government website and is general information, not legal or tax advice.
For assistance with registering and operating a company in China, foreign founders can contact ChinaMNC on WhatsApp / WeChat at +86 153 1898 8535.