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NFTC, SIIA Express Concern Over Proposed Changes to China’s Internet Information Service Management Rules
Date: 7/6/2012
Written By: Jennifer Cummings, The Fratelli Group for NFTC, (202) 822-9491

Say Amendments Would Limit Innovation, Serve as Barrier to Electronic Commerce

Washington DC – The National Foreign Trade Council (NFTC) and the Software & Information Industry Association (SIIA) yesterday sent a letter to China's Ministry of Industry and Information Technology (MIIT), expressing concern over the Chinese government's draft amendments to the "Internet Information Service Management Rules." Citing the draft regulations' potential impact on the hundreds of companies the NFTC and SIIA represent, the two associations urged the Chinese government to reconsider the proposals.

The letter was sent in response to a request for public comments on the draft amendments from the Chinese State Council Information Office and the MIIT. NFTC Vice President for Global Trade Issues Jake Colvin and SIIA Vice President for Public Policy Mark MacCarthy wrote:

 
"… As drafted, we believe the proposed regulations would limit innovation, impair the ability of business and individuals to engage productively over the internet and could serve as a barrier to electronic commerce and trade in physical goods.

"This proposal would impose an enhanced regulatory regime without adequate safeguards to ensure the fair application and administration of rules. … Transparent procedures and appeals processes are essential to ensure that internet policies are applied evenly to domestic and foreign entities and do not unfairly limit online channels for trade or marketing or otherwise discriminate against commercial activities by global providers.

"… A recent survey from the Boston Consulting Group found that Chinese small and medium sized businesses that used the internet intensively grew their sales by an average of 25 percent, compared to 9 percent growth for firms that used the internet less intensively or not at all. The effect of these regulations would be to limit the growth and use of the internet in China, thereby discouraging local innovation, business productivity, and economic development.

"…[W]e urge the reconsideration of the proposed revisions to the Internet Information Service Management Rules. Future internet policies should be predicated on transparent, fair, and predictable treatment of individuals and entities, and should encourage local innovation and
creativity while ensuring the equitable treatment of global businesses."
 

To read the full text of the letter, click here.
 
 
 

About the NFTC
Advancing Global Commerce for Nearly A Century- The National Foreign Trade Council (www.nftc.org) is a leading business organization advocating an open, rules-based global trading system. Founded in 1914 by a broad-based group of American companies, the NFTC now serves hundreds of member companies through its offices in Washington and New York.
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