ཕྱིར་བཏོན་པ། · Bhutan

China’s New Tech‑Driven Commerce Policy: A Guide for Foreign Founders

A practical overview of China’s first “Tech‑Empowered Commerce” policy, outlining the opportunities and compliance points for foreign entrepreneurs setting up or running a business in China.

What Foreign Founders Need to Know About China’s First “Tech‑Empowered Commerce” Policy

On 19 October 2026, China’s State Council Information Office held a press conference to present the Opinions on Accelerating the Advancement of Tech‑Empowered Commerce (the “Opinions”). The document, jointly issued by the Ministry of Commerce (MOFCOM) and other departments, is the first national policy specifically themed on using technology to upgrade the commerce sector. For foreign founders registering or operating a company in China, the policy signals where the government will direct support—and what compliance expectations may follow.

Why This Policy Matters for Foreign‑Invested Enterprises

Commerce is described as the link between production and consumption and a key pillar for building a strong domestic market. The Opinions argue that technologies such as artificial intelligence, big data, embodied intelligence, and digital twins are reshaping how commerce is organized and how consumers experience products and services. The policy aims to make the entire commerce chain more intelligent, green, and integrated. For foreign founders, this means the regulatory and support environment will increasingly favour companies that adopt these technologies across supply, distribution, and customer engagement.

Four Pillars of the Policy

The Opinions set out 18 measures under four main pillars:

• Technology‑enhanced goods consumption: Better alignment of supply with demand through flexible manufacturing, personalised customisation, and similar models.
• Technology‑driven expansion of services consumption: Upgrading basic services such as housekeeping and catering, expanding upgraded services in culture, tourism, and sports, and improving personalised service quality.
• Technology‑smoothed commerce circulation: Accelerating digital and intelligent supply chains, transforming wholesale and retail, and building a quality‑oriented e‑commerce ecosystem.
• Technology‑shaped future commercial scenarios: Cultivating intelligent, green, and integrated commercial settings.

The policy also addresses six supporting areas: standards, infrastructure, safety supervision, R&D transformation, talent development, and fiscal and financial support. Foreign founders should note that these are areas where local governments may later introduce implementing rules.

Key Features: “New”, “Comprehensive”, and “Practical”

Officials summarised the policy’s main features with three words: new, comprehensive, and practical. “New” refers to the emphasis on technological innovation in response to changing consumer trends—for example, MOFCOM data showed that sales of smart glasses on key platforms grew 1.1 times year‑on‑year in the first nine months of 2026. “Comprehensive” means the policy covers both traditional and new business formats across the entire commerce chain, from product R&D and manufacturing to wholesale, logistics, e‑commerce, and consumer scenarios. “Practical” indicates a problem‑oriented approach, with measures designed to be implementable and verifiable—such as developing flexible manufacturing, promoting on‑demand production, and cultivating custom brands.

AI and Manufacturing: What the “AI + Manufacturing” Initiative Means for Your Operations

The Ministry of Industry and Information Technology (MIIT) provided an update on the “AI + Manufacturing” special initiative, launched in July 2025 with seven departments including MOFCOM. According to MIIT, the initiative has made progress in five areas:

• Scenario‑driven application: Over 1,000 high‑value application scenarios have been distilled across 20 industries such as steel, automotive, and pharmaceuticals; 285 typical cases have been published; and more than 5,000 enterprises have participated in supply‑demand matchmaking. The adoption rate of AI technology among large‑scale manufacturing enterprises exceeds 30%.
• Industrial foundation: More than 500 high‑quality datasets and over 100 industrial intelligent agents have been developed in 20 key industrial fields. Hundreds of national and industry standards have been formulated, and China has led the development of over 70 international standards.
• AI terminal products: A national standard system for intelligent grading of AI terminals has been established, with standards already released for seven categories including smartphones, computers, TVs, and glasses. More than 100 products have reached the “assistant‑level” capability, able to understand user intent and provide proactive services. In the first half of 2026, shipments of various intelligent terminals exceeded 100 million units.
• Enterprises and talent: As of the end of June 2026, there were over 6,600 AI enterprises. MIIT is implementing an action plan to cultivate AI application service providers and building a national base for excellent engineers.
• Industrial ecosystem: An open‑source AI community (AtomGit) has been established, and a RMB 60 billion national AI industry investment fund has been set up. Ethical review and service measures for AI are being implemented.

For foreign founders in manufacturing or consumer products, these developments suggest increasing availability of government‑backed resources, standards, and matchmaking opportunities. The next steps announced by MIIT include strengthening technology supply through challenge‑based mechanisms, accelerating product renewal (including AI computers and phones, brain‑computer interfaces, and embodied intelligence), and improving production‑marketing connections.

Service Consumption: Opportunities in Everyday and Upgraded Services

The Opinions also address the rising demand for quality services in education, sports, elderly care, and childcare. While the source text cuts off before detailing specific measures, the policy’s direction is clear: technology will be used to upgrade both basic and upgraded service sectors. Foreign founders in these areas should monitor forthcoming implementing rules from MOFCOM and other departments.

Practical Takeaways for Registering and Operating a Company

Based on the official statements, foreign founders should consider the following:

• Align with policy priorities: Projects that involve AI, digital supply chains, smart retail, or green commerce are more likely to find support under the six enabling areas (standards, infrastructure, etc.).
• Prepare for standards and certification: The expansion of AI terminal standards and industrial datasets means products may need to meet new national or industry standards. Build compliance into your product development cycle.
• Leverage matchmaking and service providers: Government‑organised supply‑demand matchmaking and a growing pool of AI application service providers can help foreign companies connect with local partners and customers.
• Monitor local implementation: As a national framework, the Opinions will be followed by local measures. Keep an eye on announcements from local commerce and industry authorities where you are registered.

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

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