The Electronic Signature Law of the Peoples Republic of China (“E-Signature Law”) is a law enacted by the National Peoples Congress of the Peoples Republic of China that provides legal protection for electronic signatures and associated digital transactions. It was implemented on 1 January 2019 and provides legal certainty for electronic contracts in the country by establishing that an electronic signature is valid and binding in the same way as a traditional paper-based signature.
The E-Signature Law defines an electronic signature as “an electronic registration of data representing a signatory’s intent and consent in electronic form, created under the control of the signatory, and which can be used in order to authenticate the signatory’s identity.” It covers a wide range of digital signatures and authentication technologies, including biometric authentication, digital certificates, one-time passwords, hardware token authentication, among others.
The law applies to all types of digital transactions, including between individuals and companies. It also applies to any type of document that is exchanged electronically, including contracts, payments and other documents. Transactions involving government institutions are also covered by the law, but may have additional requirements.
The law establishes a range of rights and obligations for both parties when entering into an electronic transaction. For example, the law requires that personal data should be collected and used only with the user’s consent, that electronic signatures are legally valid and binding, that security measures must be taken in order to protect the integrity of the system, and that digital records should be kept for a period of at least 10 years.
The law also provides that parties may enter into legal relationships without being physically present in the same place. This is especially important when it comes to digital transactions, as it increases efficiency and frees up resources that would otherwise have to be spent on traveling.
In addition, it allows parties to enter into transactions with broader legal implication, such as when it comes to real estate transactions or the transfer of ownership of certain goods or services.
Finally, the law provides for the implementation of dispute resolution mechanisms to deal with disputes arising from electronic transactions. This will provide parties with the necessary confidence to enter into transactions electronically, safe in the knowledge that their rights will be adequately protected.
In conclusion, the Electronic Signature Law of the Peoples Republic of China is an important piece of legislation that provides legal certainty for electronic contracts and digital transactions. It also increases efficiency, as parties no longer have to physically present to enter into certain kinds of arrangements. The law establishes a range of rights and obligations that parties must adhere to, and provides for dispute resolution mechanisms to deal with potential disputes. Overall, the law is likely to have a positive impact on businesses and individuals looking to enter into digital transactions.
