Research Paper: Can China Promote Electronic Commerce through Law Reform?

This paper may be of interest to the guys over at China Law Blog as well as economists interested in network economics.

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"Can China Promote Electronic Commerce through Law Reform? Some Preliminary Case Study Evidence"

Contact: JANE K. WINN
University of Washington - School of Law
Email: jkwinn1@u.washington.edu
Auth-Page: http://ssrn.com/author=334081

Co-Author: YUPING SONG
Henan University of Technology - School of Law
Email: songyp_haut@sina.com
Auth-Page: http://ssrn.com/author=624756

Full Text: http://ssrn.com/abstract=901849

ABSTRACT: This article analyzes legislation recently enacted in China to promote the use of electronic commerce among Chinese businesses. It reviews the terms of regulations to promote the use of accounting software by Chinese firms, the electronic commerce enabling provisions of the 1999 Contract Law and the
2004 Electronic Signature Law in light of their relationship to China's economic development goals and their impact on Chinese businesses. It contrasts the success of the accounting software regulations with the limited impact of the Contract Law provisions and the dim prospects for the Electronic Signature Law. While law reform generally may be of limited use as a policy instrument to promote the use of electronic commerce technologies by Chinese businesses as long as the transition to a market economy remains incomplete, these case studies suggest that law reform based on an accurate understanding of the conditions Chinese businesses face has a better chance of success than legislation based on foreign models which in turn were based on conditions in developed market economies which differ significantly from those in China's transition economy.
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