China allows foreign investors to wholly own e-commerce business

The name plate of the China (Shanghai) Pilot Free Trade Zone on a gate of the Waigaoqiao free trade zone in Shanghai. [Photo provided to China Daily]

BEIJING - Foreign investors are allowed to fully own e-commerce companies in a pilot scheme in the Shanghai Free Trade Zone (FTZ), the Ministry of Industry and Information Technology (MIIT) announced on Tuesday.

The MIIT said in a brief statement that telecommunication authorities in Shanghai would take charge of the pilot scheme and regulate and supervise foreign investors.

The ministry did not reveal any further details.

The entry of foreign investors to Shanghai FTZ is expected to trigger a gradual opening to overseas capital in China's lucrative e-commerce business currently dominated by homegrown giants including Alibaba, JD.com and others.

The Shanghai FTZ was launched in September 2013 to test a broad range of economic reform measures.