With the development of internet technology and cross-border transactions in the globe village, especially the growth of digitalization under the impact of pandemic and sustainability, electronic contract and e-signature are more widely used in routine business and legal context in China. This also helps improve efficiency and convenience for international business involving parties from different countries.

The Civil Code of PRC has legitimated the validity of electronic contract, as stipulated in Article 469, The parties may conclude a contract in writing, orally, or in other forms. A writing refers to any form that renders the content contained therein capable of being represented in a tangible form, such as a written agreement, letter, telegram, telex, or facsimile. data message in any form, such as electronic data interchange and e-mails, that renders the content contained therein capable of being represented in a tangible form and accessible for reference and use at any time shall be deemed as a writing.

In addition, in Law of Electronic Signatures of PRC, Article 3 regulates that the parties may stipulate the use, or non-use, of electronic signatures or electronic data in a contract or other documents and documentations in civil activities. The legal effect of any document that uses electronic signatures and/or electronic data, as stipulated by the parties, shall not be denied simply because it takes the form of an electronic signature and/or electronic data.

The e-contracts and e-signature has been broadly accepted in general civil contract, and governmental services. The Law of E-Signature also stipulates in Article 14 and 7 that a reliable electronic signature shall have the same legal effect as seal or signature by hand. No electronic data may be rejected for being used as evidence simply because it was created, sent, received or stored via electronic, optical, magnetic or other similar means.

Moreover, since March 2023, more than 3500 China courts nationwide support electronic service of documents in the Internet judicial blockchain platform or the People's Court online service applet for online verification. Thus, every electronic document served by the People's Court in the future will be verified by blockchain technology. 

However, there are also some other risks in practice regarding the reliability and authenticity requirement for digital data in legal proceedings which requires more attention. In addition, please be noted that the above-mentioned provisions for e-signature shall not apply to the following documents:

1. Documents concerning personal relations, such as marriage, adoption and succession, etc.;

2. Documents concerning the termination of water supplies, heat supplies, gas supplies or other public-utility services; and

3. Other circumstances, under which electronic documents do not apply, as prescribed by laws and administrative regulations.

In the event of cross-border transactions between a Chinese party and a party outside China, there are some Chinese e-signature service vendors certified to provide relevant services in compliance with E-signature law available to help facilitate execution, such as ESIGN and FADADA. China courts have widely accepted the  validity of verified e-contract and e-signature.

This article is written by Yvonne Wang, who has been contributed to the pratice area of IP commercial.