1. A digitized but still centralized Chinese administration
China has turned a corner in terms of digitization, integrating technology into most economic and administrative functions. This model has improved the country's efficiency, while making governance more reactive and intrusive. For foreign companies, this requires rapid adaptability and heightened vigilance in terms of compliance and data protection.
Registration and administrative procedures: since 2021, foreign companies can register via the MOFCOM and SAMR portals. Documents (articles of association, identity documents, letters of appointment) are posted online, electronically signed, and validated using facial recognition.
However, this digital step does not replace physical obligations. This is the case for formalities relating to the incorporation or amendment of 100% foreign-owned subsidiaries, joint ventures and representative offices. Signed, stamped and notarized or apostilled originals are still required. They still have to be forwarded to the supervisory authorities handling the file. Digitization therefore precedes ordinary administrative processing, without eliminating it. In this way, the increased efficiency and speed of processing does not replace the age-old bureaucracy.
Tax returns and e-invoices: since 2020, companies are required to file their tax returns and e-invoices via an online platform provided by the State Administration of Tax. The fapiaos (official invoices) are electronic. Declarations are cross-referenced with other databases (customs, social security) to detect fraud. An alert is automatically generated in the event of inconsistency.
For certification, approval and calls for tender: product certification, NMPA registration (cosmetics, medical devices, pharmaceuticals & drugs) or CFDA registration (foodstuffs) are now carried out via digital interfaces. The same applies to responses to public invitations to tender: the cebpubservice.cn system enables you to consult and submit bids entirely online. Automatic analysis tools help juries to evaluate bids.
2. China logistics boosted by digital technology
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Single window and customs AI: the government portal China International Trade Single Window now centralizes all import-export formalities with Chinese customs, health inspection and port authorities.
Artificial intelligence is widely integrated to profile shipments, detect anomalies, automate documentary checks, and thus speed up customs clearance.
Tracking sensitive products and traceability: hazardous products (chemicals, lithium) and medical devices must be registered on platforms connected to the police, environmental authorities (EBP) and customs.
QR codes on each parcel enable geolocation tracking.
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- Logistics employment boom:
the rise of e-commerce has turned China's entire supply chain on its head. Thanks to players such as JD Logistics, Cainiao and Meituan, thousands of automated warehouses and regional hubs have sprung up. Last-mile delivery relies on massive fleets of electric scooters. It is estimated that in less than 10 years, more than 25 million jobs have been created in the entire digital logistics chain. This figure alone illustrates the transformation of goods mobility in China.
3. Daily life, consumption and China's hyperconnected society
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With the emergence of Alipay (Ant Group) and WeChat Pay (Tencent), China has seen a lightning transition to a cashless economy. Since 2015, these 2 mobile apps have replaced cash in the majority of everyday transactions: shopping, buying a coffee, paying for a bus or metro ticket.
Today, merchants display their personal QR code printed on a sign, enabling anyone to pay them via their smartphone.
By 2024, over 90% of retail transactions in urban areas will be done electronically. Cash is becoming so scarce that some shops and cab drivers no longer know how to give change.
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This trend became more pronounced during the Covid-19 pandemic, when contactless payments were favored for health reasons. This phenomenon accelerated the abandonment of paper money and coins, even in rural areas.
3.1. A major cultural break with Western models
This massive adoption contrasts sharply with practices in Europe and North America, where cash payments remain protected by social habits, regulations and ethical considerations. For the Chinese, efficiency and convenience take precedence over confidentiality or free choice of payment method. Many Westerners remain attached to the anonymity of cash, perceived as a guarantee of individual freedom.
In China, the notion of full traceability is not only accepted, but valued: it is seen as a way of guaranteeing order, facilitating governance and preventing fraud. Digital payment is also integrated into a multifunctional ecosystem. It can be used to access bank loans, book a train ticket or make a hospital appointment. All without having to switch applications.
For a foreign visitor, this fluidity can be confusing, not least because of the language barrier and the need to have a Chinese bank card or account to activate certain functions. Conversely, a Chinese citizen may find a Western system, where payment still requires a credit card, banknotes or a paper signature, archaic and frustrating.
3.2. Online commerce and Chinese influencers
As digital commerce becomes more widespread, the role of influencers has been a major factor. Platforms such as Taobao, JD, Pinduoduo and Xiaohongshu have reshaped consumer habits. As in the West, commercial live-streaming enables consumers to buy live while an influencer presents a product. This practice has also had the effect of reducing footfall in physical stores.
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The intensive use of screens extends to consumption, entertainment and information, but also to public services and transport: cabs, metros, buses (electric in major metropolises) and public bicycle hire.
In major cities such as Shanghai, Beijing, Guangzhou and Shenzhen, between 50% and 60% of the vehicle fleet is made up of individual electric cars.
Electric vehicles such as those from BYD, Nio, Zeekr or Xpeng offer integrated digital services: GPS navigation system connected to the road administration, intelligent voice interface, remote control via app, automatic payment of parking or tolls.
The car becomes a digital extension of the home, with facial recognition, a driving profile stored in the cloud, and sometimes personalized in-cabin advertising.
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Yet the authorities are keen to protect young people from the use of screens. In 2021, they have imposed time limits for video games: 3 hours per week for minors. This measure is intended to protect the mental health of the younger generation. Facial recognition technologies prevent circumvention of the rules.
4. Chinese and international platforms: an autonomous ecosystem
| Western service |
Public accessibility in China |
Chinese equivalent |
| Google |
Accessible in China until 2010. Conflict with censorship requirements and targeted attack on dissident Gmail accounts. |
Baidu (百度) |
| YouTube |
Accessible until March 2009. Blocked after the publication of videos showing the repression of riots in Tibet. |
Bilibili (哔哩哔哩)
Youku (优酷)
Tencent Video (腾讯视频) |
| Facebook |
Accessible until July 2009. Blocked after riots in Xinjiang. Authorities accuse Facebook of enabling the organization of protesters. |
WeChat (微信)
Weibo (微博) |
| Instagram |
Accessible then blocked in 2014 as intervened during the Hong Kong protests. |
Xiaohongshu (小红书 RED)
Douyin (抖音) |
| WhatsApp |
Partially accessible in until Sept 2017. Degraded operation then total interruption in the run-up to the 19th Party Congress. |
WeChat (微信) |
| Twitter (X) |
Accessible until June 2009. Service blocked shortly before the anniversary of the Tian'anmen events. |
Weibo (微博) |
| Amazon |
Amazon.cn established in China in 2004, then acquired by Joyo.com. Leaves e-commerce in 2019 but keeps its AWS and cross-border (import and export) services. |
Taobao (淘宝)
JD.com (京东)
Pinduoduo (拼多多) |
| Wikipedia |
Chinese version blocked for a long time. All versions to be blocked in April 2019. |
Baidu Baike (百度百科)
Hudong Baike (互动百科) |
About Chinese Artificial Intelligence: din the traditional tradition of major Chinese plans, a national plan called AI China 2030 aims to make China the world leader in AI. Chinese digital giants such as Baidu, Tencent, Huawei, iFLYTEK and SenseTime are developing AI in the fields of language, vision, autonomous driving and education.
5. Communication, governance and digital surveillance
In recent years, China has developed an ecosystem of direct digital communication between the state and its citizens, based almost exclusively on cell phones. This transition, accelerated during the Covid-19 pandemic, relies on simple but high-impact technological tools: health QR codes, government SMS, safety or emergency alerts, administrative notifications.
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Alerts, health monitoring and official SMS: during the pandemic, the health QR code system (健康码 jiànkang ma) established itself as an instrument for controlling travel and public health. Every citizen, resident or traveler had to display on their smartphone a color code (green, orange or red) generated by the major Alipay or WeChat platforms. This code was linked to a central database cross-referencing travel history, close contacts and PCR test results. It was a condition of access to public transport, public places, residential buildings and even restaurants.
At the same time, local and national authorities regularly send warning or preventive SMS messages: weather alerts (typhoons, cold snaps, extreme heat), police messages in the event of an investigation or public alert, health instructions, even tax or vaccination reminders. This practice, which has gained widespread social acceptance, has established the cell phone as the main channel of exchange between citizens and the authorities.
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Gentle surveillance or active control?
Technology is not only used for information and prevention purposes. It is also a surveillance tool integrated into a normative system designed to reinforce social discipline and confidence in institutions. Two mechanisms illustrate this logic: digital denunciation and social credit.
Online reporting of offences or disputes
Chinese consumers can file complaints online with the SAMR (Administration for Market Regulation). This system is coupled with e-commerce platforms, which redirect users to official or internal complaint forms. The administration monitors reported cases in real time and can impose swift sanctions. An e-tailer's reputation can be affected instantly: product withdrawal, downgrading in search results, temporary blocking or investigation.
Processing is facilitated by the centralization of data, the unique identification of companies (via their 18-digit registration code) and the interconnection of databases between administrations.
Merchants' social credit and online reputation
The social credit system (社会信用体系), in place since the 2010s, is based on the registration of good or bad business practices. A company that fails to meet its reporting, tax, contractual or environmental obligations can have its social credit rating automatically lowered. This has concrete consequences, such as restricting access to public tenders, limiting regulated activities, or making it impossible to obtain certain permits.
Online, this rating is visible to all, notably on platforms such as Credit China (信用中国) or the national system for publicizing company information (企业信用信息公示系统). The impact is legal, commercial and reputational.
A model at odds with Western standards
This digital system of communication and governance is largely centralized and little contested at national level. Unlike Western countries, where alerts are often limited to voluntary or localized notifications, China makes direct mobile communication a mandatory and sometimes intrusive channel.
Similarly, online reporting and automatic sanctioning have no equivalent in Europe or the USA, where personal data protection and individual rights of appeal limit automated decisions. In China, the responsiveness of the authorities and the visible nature of sanctions create an ecosystem that is perceived locally as more effective, but also stricter and more prescriptive.
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6. A singular Chinese model versus Western standards
6.1. Centralized approach versus liberal model
In China, digitization is driven by the state, with the aim of social control, efficiency and economic development. Conversely, in Europe or the United States, digitization is driven by the private sector, with a strong legal framework (e.g. European GDPR, General Data Protection Regulation 2016/679).
Elsewhere in Asia (Japan, South Korea, Singapore, Taiwan), digitization is also advanced but less intrusive, with greater respect for privacy.
6.2. Social acceptance
Chinese citizens show a high degree of acceptance of digital control, in return for convenient, fast and efficient services. The use of facial recognition to enter the metro or to check school results has become the norm. In Western countries, this type of control would simply be rejected as an infringement of freedoms.
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A CHINESE PROVERB |
沿着河路走，比进梦里找路好。
Yánzhe hé lù zǒu, bǐ jìn mèng lǐ zhǎng lù hǎo.
"It is better to follow the path traced by the river than to seek
one's way in dreams."
This proverb illustrates the Chinese spirit of adaptation and pragmatism in technology adoption. Digitization guided by collective needs rather than individual ideals.
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7. Business opportunities for Western companies
Sector |
Business opportunities |
Examples of services & products |
Smart cities & governance |
Connected urban management solutions |
Mobility software,
open data platforms |
Logistics and e-commerce |
Tracking technologies,
integration platforms
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IoT for warehouses,
Real-time tracking APIs
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Electric mobility |
Connected services for vehicles |
Voice interfaces, navigation,
on-board payment systems |
Digital health |
Teleconsultation tools, connected health monitoring |
Healthcare apps, connected medical objects and tests, diagnostic AI |
Cybersecurity and data sovereignty |
Solutions adapted to the Chinese context |
Pare-feux, outils de conformité,
audit de protection des données |
Education and e-learning |
Interactive content adapted to Chinese standards |
Multilingual platforms, educational AI, online tutoring |
CRM and e-reputation |
Opinion tracking and social reputation tools |
Dashboards, moderation AI,
analysis of weak signals |
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IN CONCLUSION |
China has embarked on a systemic digitization of its administration, economy and society as a whole. This state-led model, supported by powerful companies and accepted by a permanently connected population, has become a structuring force in the country.
But this efficiency is accompanied by tighter controls and a standardization of digital behavior. Faced with this transformation, Western countries are at a crossroads: should they draw inspiration from China's performance, or preserve a model based on individual freedoms at the cost of slower, more fragmented digitization?
In any case, China is charting a singular course - and now
an unavoidable one - in the digital world of the 21st century.
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8. Our set-up and business development services in China
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