April 6, 2020
China’s New eCommerce Law Strengthens IP Protections

China’s New eCommerce Law Strengthens IP Protections

This week’s top stories include China’s
new ecommerce law strengthens IP protections, companies moving production
to Cambodia to avoid tariffs and blockchain offers unparalleled
connectivity. Remember to click the link below for the full stories and two other
featured articles. First up, China’s new ecommerce law
strengthens IP protections. 28.6% of all retail sales made in China this year
were ecommerce sales. But China’s ecommerce reputation remains lackluster.
In an effort to rebuild this reputation Chinese lawmakers introduced a new
ecommerce law that will take effect January 1st 2019. The law separates
operators in the three categories: Platform operators, operators on
platforms and online sellers. Under the new law a platform operator is equally
liable as a merchant caught selling counterfeit goods on its platform. And in
a bid to strengthen IP protections, ecommerce platforms are required to
establish rules to protect IP rights. The law also works on strengthening consumer
protections. It bans fake reviews and requires merchants to clearly disclose
clauses and bundles placed on sales. As more consumers turn to online platforms,
ecommerce laws will be essential in promoting a healthier Chinese e-commerce
market. Next up, companies moving production to Cambodia to avoid tariffs.
The most recently announced tariffs on 200 billion worth of goods show an
escalating trend with no signs of stopping.
Cambodia’s is one location drawing fleeting manufacturers. Known for cheap, readily
available labor it’s a logical jump from China.
Cambodia’s manufacturing labor costs have risen about 179 percent since 2012.
But annual factory worker wages in China are still about five times those in
Cambodia. Where Cambodia excels in labor it lacks an infrastructure.
Infrastructure plays a significant role in lead times and productivity.
It connects supply chains and allows goods and services to move across
borders. If you’re considering moving part or all of your manufacturing
operations in Cambodia it’s important to be realistic about the move. Labor may be
cheap, but can the infrastructure support your production needs? Last up, blockchain
offers unparalleled connectivity, but only if you trust it. Imagine the impact
on production if you could track every single component of your supply chain.
This is the power blockchain possess. A wealth of opportunity for those
looking to speed and traceability. Blockchain’s main purpose is to create
transparency and traceability. But it can be difficult to have confidence in
emerging technology. Blockchain’s foundation in tracking and auditing can
help ensure integrity and authenticity of raw materials and finished products.
It also allows retailers, producers and freight providers to collaborate in
real time. It can be difficult to trust anything new. But for many, the benefits
of blockchain technology are too enticing to wait for greater industry
adoption. Those are just the top three stories from this week. To read the other two,
follow the link in the description below. Thanks for watching and tune in next
week on Best in Manufacturing!

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