China has made great strides in the world of B2B or business to business and hence the import/exports of goods and services and global sourcing of commodities is on the rise. There is tremendous scope for the development of B2B or business to business dealings in China and with the increase in the flow of goods and services across the border in the form of import/export and global sourcing, government found it necessary to make stringent laws and regulations in order to govern the same so that only standard goods and services get exchanged across the border.

Of course this does not mean to say that these regulations are very recent but have been in existence for nearly two decades now. As early as 1989, Chinese government laid down rules which were adopted at the sixth meeting of the standing committee of the Seventh National People's Congress and dealt with import/export of goods and hence in a way it covers global sourcing and B2B or business to business deals as well. The regulations are spread in over six chapters which vividly lay down regulations which need to be followed for import/export of goods and hence provide a basis for related activities like B2B or business to business and global sourcing deals.

It would not be appropriate to go into the legal details and implications of each of the chapters. In fact article 1 of the first chapter basically outlines the mission these regulations as follows – "This Law is enacted with a view to strengthening the inspection of import and export commodities, ensuring the quality of import and export commodities, protecting the lawful rights and interests of the parties involved in foreign trade, and promoting the smooth development of China's economic and trade relations with foreign countries". Of course it goes without saying that it also covers B2B or business to business dealings and global sourcing activities within its scope as well which involved cross border transactions of goods and services.

The rest of the chapters lay down provisions for inspection of goods which are meant for export as well as which are being imported from foreign countries. No goods which are not of the requisite standards can go through the import and export process. Thus in a way this regulates the B2B or business to business and global sourcing deals as well where goods change hands over national frontiers of the country. Thus we see that B2B or business to business deals are well governed in China and carrying out of import/export and global sourcing activities requires fulfilling of stringent conditions which ensure the quality of goods that cross her borders both ways.