Alibaba, JD Dip In Hong Kong As China Proposes New E-Commerce Rules To Ease Merchant Strain

Beijing’s latest move is part of ongoing efforts to support businesses amid a sluggish economy and continued pressure from U.S. tariffs.
A logo depicting a shopping cart.
A logo depicting a shopping cart.
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Yuvraj Malik·Stocktwits
Updated Jul 02, 2025 | 8:31 PM GMT-04
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A Chinese regulator has published draft rules for the country's e-commerce sector, calling on firms to offer lower fees and flexible terms to merchants, a move that will likely impact top platforms like Alibaba (BABA), JD.com (JD), and PDD Holdings (PDD).

The State Administration for Market Regulation (SAMR) issued the notice on Sunday. It directed online platform operators to "reduce burdens for merchants," focusing on supporting small and medium-sized businesses.

The move is the latest effort by Beijing to support local businesses. The Chinese economy, already facing a dire situation from tepid consumer spending and a prolonged property crisis, is at risk from U.S. President Donald Trump's aggressive trade policy.

Although the U.S. and China have agreed to ease tariffs temporarily, businesses are preparing for headwinds as the situation continues to unfold. Recently, Chinese retailers have hiked prices and shifted their focus from U.S. buyers to domestic and European markets.

SAMR's notice urges online platforms to display commission fees and refunds more prominently on their sites and consider lowering or waiving fees during natural disasters or public health emergencies.

It has also asked shopping sites to consult with the public before making pricing changes.

Online delivery platform Meituan and TikTok owner ByteDance are also expected to be affected.

No timeline has been set for implementing the new rules currently open for public comment.

Alibaba shares in Hong Kong were down 0.5%, while those of JD were down over 3% in early trading hours on Tuesday.

U.S.-listed shares of Alibaba are up 43.5% this year, while Pinduoduo shares are up 26.3%. JD shares are down 2.7%

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