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

A practical guide for foreign entrepreneurs on China's first 'tech-empowered commerce' policy, covering AI integration, supply chain upgrades, and new business scenarios.

China's First 'Tech-Empowered Commerce' Policy: Key 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 Tech-Empowered Commerce (科技兴商), a new policy document jointly issued by the Ministry of Commerce (MOFCOM) and other relevant departments. The policy is the first comprehensive, systematic document themed on "tech-empowered commerce," aimed at integrating technological innovation throughout the commerce sector. For foreign founders establishing or operating a business in China, this signals a strategic push toward digitalization, smart manufacturing, and upgraded consumer services—areas ripe with opportunities and regulatory considerations.

Why This Policy Matters for Foreign Businesses

The commerce sector is described as a critical link between production and consumption and a key support for building a strong domestic market. With rapid advancements in AI, big data, embodied intelligence, and digital twins, the government aims to transform how commerce is organized and operated, improve consumer experiences, and enhance supply-demand matching. The policy outlines 18 specific measures across four main areas, supported by efforts to optimize the development environment in six aspects: standards, infrastructure, safety supervision, R&D transformation, talent cultivation, and fiscal/financial support.

For foreign founders, this means China's market is increasingly oriented toward tech-driven commerce. Businesses that align with these priorities—such as those in AI, smart logistics, or digital services—may find a more supportive ecosystem, while traditional sectors will face pressure to upgrade.

Four Pillars of the Policy

1. Tech-Empowered Upgrading of Goods Consumption

The policy focuses on precisely matching product supply with consumer demand. It encourages flexible manufacturing and personalized customization to better align supply with demand. The "AI + Manufacturing" special initiative, launched in July 2025 by the Ministry of Industry and Information Technology (MIIT) and MOFCOM, is a key component. According to MIIT, the initiative has already:

• Identified over 1,000 high-value application scenarios across 20 industries (e.g., steel, automotive, pharmaceuticals) and published 285 typical cases.
• Facilitated supply-demand matchmaking for over 5,000 enterprises; AI technology adoption rate among large-scale manufacturing firms exceeds 30%.
• Built over 500 high-quality datasets and promoted more than 100 industrial AI agents.
• Developed national standards for AI terminals (smartphones, computers, TVs, glasses, etc.), with over 100 products meeting assisted-intelligence requirements.
• Registered over 6,600 AI enterprises as of June 2026; established a RMB 60 billion national AI industry investment fund.

MIIT officials noted that in the first half of 2026, shipments of various intelligent terminals exceeded 100 million units. The next steps include accelerating AI product普及 (popularization) through trade-in programs and fostering AI application service providers.

2. Tech-Driven Expansion of Services Consumption

The policy aims to upgrade basic services like housekeeping and catering, while expanding升级类 (upgrade-type) services such as culture, tourism, and sports. It also promotes digital transformation of livelihood services including healthcare, elderly care, and childcare, and expands smart education, smart tourism, and smart sports. For foreign founders in the services sector, this indicates a push toward digitalization and higher service quality, with potential openings in edtech, healthtech, and smart tourism platforms.

3. Tech-Smoothed Commerce Circulation

Measures include accelerating the implementation of a digital-intelligent supply chain initiative, promoting the transformation of wholesale and retail, and building a quality e-commerce ecosystem. A "Quality E-commerce Cultivation Action" is proposed, with enhanced online verification of key products on e-commerce platforms. Foreign e-commerce players should note the increased emphasis on product quality and compliance.

4. Tech-Shaped Future Business Scenarios

The policy encourages creating intelligent, green, and integrated commercial scenarios. This includes fostering new business formats like commercial AI agents and green circular consumption. Foreign founders with innovative retail concepts or sustainability-focused models may find fertile ground.

Practical Implications for Foreign Founders

• Manufacturing and AI: If you operate in manufacturing or AI, the "AI + Manufacturing" initiative offers a framework for collaboration and access to application scenarios. However, alignment with national standards and participation in supply-demand matchmaking may be beneficial.
• Consumer Goods and Retail: The push for personalized customization and quality e-commerce means opportunities in niche branding and compliance with product verification. Expect more scrutiny on product quality.
• Services Sector: Digital upgrades in healthcare, education, and tourism may open doors for foreign service providers with tech-enabled solutions, but be mindful of licensing requirements.
• Supply Chain and Logistics: The digital supply chain initiative could benefit foreign logistics firms offering smart solutions, but integration with local standards will be key.

Overall, the policy emphasizes leveraging China's超大规模市场 (super-large market) advantage to align technology with market needs. Foreign founders should consider how their business models fit into these priority areas, as government support (e.g., standards, funding) may be more accessible.

Conclusion

China's new tech-commerce policy sets a clear direction for the integration of technology across the commerce sector. For foreign entrepreneurs, it underscores the importance of digitalization, quality, and innovation in accessing the Chinese market. Staying informed about these policy shifts is essential for strategic planning and compliance.

Call to Action: Foreign founders can contact ChinaMNC on WhatsApp / WeChat at +86 153 1898 8535 for help registering and operating a company in China.

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