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China's New Tech-Driven Commerce Policy: What Foreign Founders Need to Know

China's new policy on tech-empowered commerce introduces measures affecting product supply, service consumption, and digital infrastructure. Here's what it means for foreign founders setting up and operating a company in China, with details on registration, compliance, and market opportunities.

Practical Takeaways for Foreign Founders

On October 19, 2026, China's State Council Information Office held a press conference to introduce the Opinions on Accelerating the Advancement of Technology-Empowered Commerce (科技兴商). The policy, jointly issued by the Ministry of Commerce (MOFCOM) and other departments, is the first comprehensive document focused on using technology to upgrade commerce across the board. For foreign founders, the key implications are in how it shapes market opportunities and the regulatory environment for tech-enabled businesses. Below we break down the main points and what they mean for your China company registration and operations.

1. Policy Overview: What Is 'Tech-Empowered Commerce'?

The policy aims to integrate technology—such as artificial intelligence (AI), big data, embodied intelligence, and digital twins—into all aspects of commerce, from production to consumption. It outlines 18 measures across four areas:

• Tech-enabled upgrading of goods consumption: Promoting flexible manufacturing and customized production to better match supply with demand.
• Tech-driven expansion of services consumption: Improving basic services like housekeeping and catering, and expanding upgraded services in culture, tourism, and sports.
• Tech-smoothing of commerce circulation: Accelerating digital supply chain initiatives, upgrading wholesale and retail, and building a quality e-commerce ecosystem.
• Tech-shaping future commercial scenarios: Cultivating intelligent, green, and integrated commercial scenarios.

The policy also includes support measures in standards, infrastructure, safety regulation, R&D transformation, talent training, and fiscal/financial support.

2. Implications for Company Registration and Operation

Entity Choice and Business Scope

The policy encourages innovation in traditional and new business models. When registering your China entity (e.g., wholly foreign-owned enterprise, joint venture, or representative office), consider whether your business scope aligns with encouraged activities such as AI applications, digital supply chains, or green commerce. While the source does not specify new registration procedures, the policy's emphasis on technology integration suggests that businesses in these areas may find a supportive environment.

Capital and Licensing

The policy does not introduce new capital requirements or licensing changes. However, it highlights the government's focus on standards and safety regulation, which could lead to updated compliance requirements for tech-enabled services. Foreign founders should stay informed about sector-specific licenses (e.g., for e-commerce, value-added telecom services, or healthcare) as the policy implementation unfolds.

Tax and Financial Support

The policy mentions fiscal and financial support as one of six areas to optimize the development environment. Specific measures are not detailed in the source, but foreign founders may benefit from incentives for R&D or high-tech activities. Consult local authorities for available benefits.

3. Key Measures and What They Mean for Your Business

The policy's 'new', 'comprehensive', and 'practical' features were emphasized by MOFCOM Assistant Minister Yuan Xiaoming. Here's how they might affect your operations:

• New: Focus on tech innovation to adapt to changing consumer trends. For example, the policy cites growth in smart glasses sales (1.1 times increase in Jan-Sep 2026 on key platforms). If you're in consumer tech, this signals market demand.
• Comprehensive: Covers the entire commerce chain, from supply to consumption. This means opportunities across sectors—whether you're in manufacturing, retail, or services.
• Practical: Problem-oriented measures, such as developing flexible manufacturing and customized brands, and promoting digital transformation of household services. If your business involves these areas, you may find specific support.

4. Sector-Specific Highlights

AI and Manufacturing

The Ministry of Industry and Information Technology (MIIT) reported progress under the 'AI+Manufacturing' initiative. As of mid-2026, over 6,600 AI enterprises operate in China, and the core AI industry scale exceeded 1.2 trillion yuan in 2025. The policy aims to expand AI application scenarios, support smart product development (e.g., AI phones, computers, smart connected vehicles), and improve supply-demand matching. For foreign founders in AI or smart manufacturing, this indicates a growing ecosystem and potential partners.

Services Consumption

The policy promotes digital upgrading of basic services (housekeeping, healthcare, elderly care, childcare) and expansion of upgraded services (education, culture, tourism, sports). If you're in these sectors, consider how technology can be integrated into your service offering to align with policy trends.

5. Compliance and Standards

The policy emphasizes standards development, safety regulation, and ethical review for AI. MIIT has published national standards for AI terminal intelligence levels and led the development of international standards. Foreign founders should ensure their products and services comply with evolving standards, particularly in AI and data security. The policy also mentions the establishment of a 60 billion yuan national AI industry investment fund and an AI ethics review framework, indicating a structured approach to governance.

6. Next Steps for Foreign Founders

While the policy does not directly alter company registration procedures, it sets the direction for China's commercial environment. To capitalize on opportunities:

• Monitor implementing rules from MOFCOM and MIIT for specific support measures.
• Assess if your business scope aligns with encouraged tech-commerce areas.
• Engage local authorities for guidance on incentives and compliance.
• Ensure your entity's business scope and licenses cover intended activities, especially in tech-enabled services.

For assistance with company registration, licensing, and ongoing compliance in China, foreign founders can contact ChinaMNC on WhatsApp / WeChat at +86 153 1898 8535.

This summary is based on information published by the relevant Chinese government website and is general information, not legal or tax advice.