With 123 million Internet users, China represents a phenomenal potential market for e-business. The astounding success of China in attracting foreign direct investment (FDI) can be partially explained by a series of reforms of policies, regulations, and laws. Can the introduction of China's new electronic signatures law produce the same results for e-business in China? This paper analyses the electronic signatures law as a tool fashioned by Chinese lawmakers to encourage e-business growth in China as they encouraged FDI. We find that China has created an electronic signature law that mirrors the open, flexible, and ever-changing e-environment. The fact that the law is not technology-specific, but rather technology-neutral, allowing for technological advances, is one of its strong points. A negative aspect of the law is its lack of a set guideline for identification requirements for purchasers of a reliable electronic signature, more commonly known as a digital signature, from electronic certification service providers. Despite the few negative aspects, the electronic signatures law should encourage the development of e-business in China.
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