Barriers and Legal Solutions to e-Logistics in China

Abstract

In 2004, the World Investment Report observes the trend of the changes of interest of foreign investment from manufacturing to service industry. In early 1970s, only 1/4 of foreign direct investment (FDI) went to the service industry. Now, it has soared to 60 %, or USD$440 million. The structure of the FDI in the service industry has also changed. Traditionally focused on trade and finance, foreign capital now has developed better appetite toward power, telecommunication, water service, and various commercial sectors. China’s logistics is certainly one of them and receives much more attention than ever after China’s WTO entry. After December 11, 2004, China has opened up its logistics industry to overseas competition, in keeping with its WTO commitments. China’s entering into the WTO has inspired a wave of reforms in existing laws and regulations, including laws in e-commerce. There is no formal, centralized regulation of e-commerce, but beginning from 2000, some government agencies and some local governments have begun to issue regulations specifically targeted at the Internet, but without coordination this effort is creating a patchwork of rules. On August 28, 2004, the Standing Committee of the 10th National People’s Congress enacted the “Electronic Signature Law of the People’s Republic of China” (“E-signature Law”), effective April 1, 2005, to boost electronic business, which for the first time legalizes increasing electronic deals. The law grants electronic signatures the same legal effect as handwritten signatures and seals in business transactions, and setup the market access system for online certification providers to ensure the security of e-commerce. While the Internet, and the need to regulate e-commerce via the Internet, has made the process of drawing up new laws more complex, it is also the case that the uneven use of the Internet in China may itself prove to be a barrier to the countrywide management of logistics. Therefore, this article plans to discuss some barriers to e-logistics in China, especially from legal perspectives and introduces some legal solutions thereafter. Finally, this article wants to conclude that China has to be sensitive and responsive to changes in rules and regulations that will cause uncertainties and lead to a decline in confidence in its information and communication technology (ICT) and logistics industries.

(Published by “Proceedings of The KIECA International Conference 2005 on Trade, Investment, Logistics & E-Biz,” Korea Internet e-Commerce Association (KIECA), 2005. 10.1, pp. 333~345.).