China released a second draft revision of its Standardization Law on May 19 that links standards to national security, which could limit the use of foreign products and services, and endanger intellectual property (IP) protection. The newest draft continues China’s push toward voluntary and recommended standards, emphasizes consumer safety, and adds new language regarding standards and national security.

The June 1 implementation of China’s Cybersecurity Law and numerous related measures should be delayed to address trade barriers, security and privacy, competition, and fairness issues, according to a May 15 letter the US-China Business Council (USCBC) submitted on behalf of 54 international trade associations to China’s government.

Providing a small amount of stability in a year of significant changes for cross-border ecommerce, the Chinese government recently halted a move to increase regulation — and costs — of foreign goods purchased online by consumers in China. Observers believe the measure is a temporary stopgap as officials work to establish additional procedures for scrutinizing yet unspecified types of imports.

China expanded data localization requirements and instituted new rules for outbound data review with a new policy that greatly increases the regulatory burden for foreign companies in advance of the full implementation of the Cyber Security Law on June 1.

Regulators are actively setting the groundwork for implementation of

China’s new draft ecommerce law

A new government system that evaluates and tracks “untrustworthy” individuals and companies could limit eligibility for financing, employment, and Party membership, as well restrict real estate transactions and travel. The Chinese government intends to fully implement this nationwide social credit system by 2018.