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Chapter 26 / Complete chapter

Building a Compliant Platform

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Chapter 26 editorial cartoon: The code is live. The paperwork is still loading. Enlarge illustration
The code is live. The paperwork is still loading.

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Editorial cartoon · Chapter 26The code is live. The paperwork is still loading.

Original illustration with Chinese lettering; the English dialogue is below. Humour is a reading aid, not evidence.

English dialogue
  • It runs!
  • Have you checked the requirements?

Platforms must never collect payments themselves and then transfer them to sellers; funds must be settled directly via a licensed payment institution.

If a platform first receives buyer payments into its own account and then forwards them to sellers, it is effectively operating a payment business. Ru…

Cost
No monetary cost is involved. However, it requires some time to integrate a product from a…
Benefit
According to regulations, a payment business is defined as “transferring monetary funds ba…

Paid websites require a license; platforms that facilitate transactions need a different type of permit; free sites only need to be registered.

Websites that charge users must first obtain a Value-Added Telecommunications Business License. This license is issued solely to companies; individual…

Cost
Registration is free of charge. Obtaining a Value-Added Telecommunications Business Licens…
Benefit
The regulations state: “The state implements a licensing system for commercial Internet in…

Obtaining a license for online cultural activities is required to run live streams; private companies rarely qualify for the permit needed to distribute audiovisual content

To host live streams or game commentary sessions, you must secure a provincial-level Online Cultural Activities License that explicitly lists “online …

Cost
The so-called “Online Cultural Activities License” governs whether one may earn money via …
Benefit
Securing the proper licensing framework ensures legal operation within China’s digital med…

Servers placed in China must be registered; ISPs must hold a value-added telecom license

If you host a server inside China, you must register it before launching your website. Registration itself costs nothing and is handled alongside the …

Cost
There is no fee for registration. It is submitted together with the server application at …
Benefit
The regulation explicitly states: “Without prior registration, no entity may provide non-c…

Requiring sellers to join the platform means the platform must verify identities, register data, report information, and retain records for three years

If you allow third parties to sell goods on your platform, you must first verify their identity, address, contact details, and business licenses, then…

Cost
No direct monetary cost. However, the platform must perform background checks on sellers’ …
Benefit
Legal regulations set specific obligations for platforms. The official wording states that…

You must regulate user-generated content: moderation mechanisms, reporting portals, and immediate takedown plus reporting of illegal material

Platforms are legally responsible for any issues arising from user content. You must set up a full system: user registration, post and comment moderat…

Cost
It costs money to hire moderators — this is the platform’s biggest ongoing expense. Report…
Benefit
Regulations require platforms to “fulfill primary responsibility for managing user-generat…

Providing information publishing and instant messaging services requires users to provide authentic identity information

If your website allows posting or chatting, you must collect users’ real identity details at sign-up. Those who refuse to provide such information can…

Cost
Implementing a real-name verification system involves paying per-use fees for the verifica…
Benefit
The law explicitly states: “Internet service providers offering network access, domain reg…

No live streaming accounts may be created for anyone under 16; tipping limits are set by age group

People younger than 16 cannot sign up for a live streaming account on this platform. Those aged 16 or older must have their identity verified and must…

Cost
There are no direct costs. The process simply requires adding two extra steps during regis…
Benefit
The law clearly states that “online live streaming service providers must not offer accoun…

Respond promptly to infringement notices; restore content after 15 days if no response

If someone sends you an infringement notice with preliminary evidence, you must promptly delete, block, or remove the relevant content and forward the…

Cost
No cost involved. You must establish a fixed workflow: receive the notice, forward it to t…
Benefit
Rights holders are entitled to request e-commerce platforms to take necessary measures suc…

When picking a server, first consider how much downtime you can tolerate, then check whether there’s any support available, and only then compare prices.

The main difference among these three options isn’t price — it’s what resources you’ll have at hand when something goes wrong. Big providers offer reg…

Cost
Cloud instances from major providers typically cost several hundred to several thousand yu…
Benefit
Again, the key distinction isn’t price but the support you can rely on during an emergency…

If user data in your website or app is breached, immediately remediate, notify affected users and regulatory authorities, and report cyberattacks to public security

If a breach, tampering, or loss of personal information occurs or is suspected, you must immediately deploy remedial containment, notify regulatory au…

Cost
Free. Requires having a predefined data incident emergency response plan in advance: desig…
Benefit
Article 57 of the Personal Information Protection Law (PIPL) provides that upon the occurr…

When offering auto-renewing subscriptions, display prominent reminders before enrollment and prior to each billing cycle, and ensure cancellation options are easily accessible

When selling auto-renewing memberships, operators must display conspicuous disclosures before initial user signup and prior to each recurring charge d…

Cost
Free. Clearly describe recurring terms on subscription enrollment pages, dispatch an autom…
Benefit
Under Article 18 of the Measures for the Supervision and Administration of Online Transact…