China allows foreign investors to own e-commerce business

Beijing: China on Tuesday said it will allow foreign investors 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) in a brief statement said 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.