China imposes new restriction on live-streaming industry - PingWest

China imposes new restriction on live-streaming industry

China imposes new restriction on live-streaming industry

August 18, 2021 0:30 pm

China’s Ministry of Commerce outlined proposals for an industry standard for live-streaming industry, in which the authority detailed the guidance about how live-streamers should dress or speak in front of the camera, as China tightens its scruntiny of the fast-growing e-commerce sector.

Detail:

Under the draft rules, platforms need to manage live-streamers to dress properly, products such as sex toys, medicines, spy devices can no longer be sold in these live-streaming sessions.

Any products that are deemed socially harmful will be banned from live-streaming e-commerce.

China also wants to build a credit system for live-streamers, merchants, and agencies based on their e-commerce sales records. The credit information will be shared across platforms and regulators, live streamers who sell fake products will be banned by the platforms.

Teenagers under 16 will no longer be allowed to live-stream and live-streamers should speak Mandarin when they host live-streaming sessions.

The rules aim to create “a good business environment for live-streaming e-commerce and consumers,” the ministry said.

Context:

In 2020, China’s live-streaming e-commerce industry was worth about 1 trillion yuan (USD154 billion), according to estimates by accounting and consulting firm KPMG.

The highly competitive sector has nurtured some popular influencers including top streamers Austin Li Jiaqi and Viya Huang Wei, who can sell products worth millions of Yuan a day on platform such as Taobao and Douyin.

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