eSignature Legality
in China
The primary legislation on electronic signatures in China (not including Hong Kong, Macau and Taiwan) is the Electronic Signature Law. Since then, the country has seen the facilitation the use of electronic signatures, especially in online commercial business. The Chinese Government has made great progress in promoting e-government services, which in turn have led to the increase in the use of electronic signatures in entities’ dealings with government departments.
Key Conditions:
Consistent with the E-Signature Law, “reliable” electronic signatures have identical legal validity as handwritten signatures or stamps. Under Article 13 of the E-Signature Law, electronic signatures are considered reliable –
- when the creation data of the electronic signature are used for electronic signature, it exclusively belongs to an electronic signatory;
- when the signature is entered, its creation data are controlled only by the electronic signatory;
- after the signature is entered, any alteration made to the electronic signature can be detected; and
- after the signature is entered, any alteration made to the contents and form of a data message can be detected.
Use cases of electronic signatures in China:
- Employment contracts;
- Commercial agreements between corporate entities;
- NDAs
- Procurement documents;
- Sales agreements;
- Consumer agreements;
- Lease agreements; and
- Purchase and sales contracts.
The COVID-19 pandemic has radically changed our lifestyles and how one conducts business. Most non-essential companies have established completely remote work setups. This “new normal” has concentrated more attention on electronic means of transactions. The “new normal” in the age of Covid-19 proceeds to facilitate the use of eSignatures.
Documents that cannot be e-signed in China:
- Documents concerning marriage
- Documents concerning adoption
- Documents concerning inheritance
- Government-related filings
- Intellectual property rights related applications
- Mortgages
- Commercial and residential leases and real estate transfer contracts
- Certain commercial contracts, including major transactions of listed companies
- Securitisation documents
- Documents concerning the suspension of public utilities such as the supply of water, heat, or gas
- Other circumstances where laws or regulations provide that electronic documents aren't applicable
DISCLAIMER
Certinal is making available the information and materials in this article for informational purposes only and is meant to help companies understand eSignature’s application in a legal framework. Laws change rapidly and Certinal makes every reasonable effort to keep the content of this article current, hence Certinal makes no claims or representations that the information contained in this article is true, accurate, correct, or current. The law is different from jurisdiction to jurisdiction, and even similar laws may be interpreted differently in different courts or in different places. Since these factors differ according to individuals and businesses, Certinal is not liable for any consequence of any action taken by any third party relying on material/ information provided under this article. The contents hereof should not be construed as legal advice in any manner whatsoever. In cases you require any assistance; you must seek independent legal advice.
