Is e-signature legal in China?

July 11, 2023, 5:35 a.m.
Legal validity of e-signatures has become a prominent topic worldwide, given the rise of digital innovation and technological advancements that have revolutionized business operations. This is particularly pertinent in the case of China, a country recognized globally for its fast-paced economic development and technological adoption. The question many people often ask is, 'is e-signature legal in China?' In short, the answer is 'yes.' E-signatures, under specific conditions, are considered legal and binding in China. However, to understand comprehensively, let's delve deeper into the intricacies of e-signature legality in China.
Is e-signature legal in China?
In the People's Republic of China (PRC), e-signatures have been legally recognized since 2004 when the PRC passed the Electronic Signature Law that was enacted to regulate the execution and validity of electronic contracts. The Electronic Signature Law outlines the legal framework and requirements for the use of electronic signatures within the PRC.
The Electronic Signature Law in China stipulates two types of electronic signatures: 'reliable' and 'general.' A 'reliable' electronic signature must fulfill certain conditions: it must be linked exclusively to the signatory; it is capable of identifying the signatory; it is created using means solely under the control of the signatory, and any alterations made to the electronic data message after signing with a secure electronic signature are detectable.
The Electronic Signature Law also establishes the consequences of using unreliable electronic signatures. If an e-signature doesn't meet the conditions of a 'reliable' e-signature, it will not be denied legality but rather its evidentiary weight will be determined through a case-by-case analysis by the court. Therefore, subjects need to consider the risks they may be exposed to in case of litigation, such as the potential difficulty in proving the legal validity of an 'unreliable' e-signature.
Furthermore, according to Article 13 of the Contract Law of the PRC, a contract is formed when an offer to conduct specific activities is accepted, regardless of its form. This indicates that electronic contracts, including those signed with e-signatures, are legally valid in China. According to the Provisions of the Supreme People's Court on Several Issues concerning the Application of Law in the Trial of Cases involving Electronic Contracts, electronic contracts have the same legal effects as traditional contracts signed in writing if they satisfy the conditions set by law.
However, as with all legal matters, certain exclusions apply. Some extremely significant agreements, such as marriage contracts, adoption, wills, and transferring of property rights, among others, must be done in the traditional, written form. These are excluded from the Electronic Signature Law as they involve personal rights, the lack of clarity, or high-value transfers.
In conclusion, electronic signatures are indeed legal in China and are being widely used by businesses and individuals, offering benefits like convenience, increasing efficiency, and reducing cost. It is, however, crucial to take note of the legal framework and requirements established under the Electronic Signature Law to ensure the secure and valid use of electronic signatures. Users of electronic signatures should be knowledgeable about the conditions to categorize an electronic signature as 'reliable,' and should aim to achieve them in practice. Finally, it is essential to bear in mind the types of agreements excluded from the Electronic Signature Law in China. By adhering closely to these rules, e-signatures can indeed be a powerful tool in the era of digitalization.

Check out our services

Check out our product HelpRange. It is designed to securely store (GDPR compliant), share, protect, sell, e-sign and analyze usage of your documents.

Other Posts: