Comparison of E-commerce Regulations in Chinese and American FTAs: Converging Approaches, Diverging Contents, and Polycentric Directions?

Insufficient WTO regulation of cross-border e-commerce confronts China and the US with three legal challenges: ambiguous classification of digital products, inadequate consumer and privacy protection, and weak protection of cross-border flow of information. China and the US have adopted converging approaches to address these challenges: inserting e-commerce chapters into their FTAs. However, the substance of these chapters is diverging. Firstly, US FTAs categorise digital products separately from goods and services and provide national treatment and most favoured nation treatment to products and their suppliers. China’s FTAs still offer no solutions to the classification of digital products and their treatment. Secondly, although China’s FTAs still provide weak protection for consumers and privacy, Chinese domestic law has converged towards US FTAs to provide better protection. Thirdly, US and China FTAs are significantly divergent in their regulation of the free flow of information. In the post-TPP era, a polycentric direction will emerge in the regulation of the free flow of information between China and the US.