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A Guide to Navigating the Chinese Market

The Chinese market is the second largest in the world with an estimated GDP of $18 trillion. Over the past few decades, it has grown to be a powerhouse of manufacturing and technology. This has been coupled with a large increase in the internet penetration that now stands at 76%, which for a country of 1.4 billion people is a significant number of people online. For companies within China and for international companies looking to trade in China, the internet is now a critical pathway to success.

Setting up a website in China isn’t as simple as elsewhere in the world, therefore, companies need to carefully consider how to manage their domain names. Why is that? In 2017, the Chinese Ministry of Industry and Information Technology (MIIT) issued regulations on the administration of domain names in China. The main requirements for any domain hosted within mainland China are as follows:

  • The domain name is in a top-level domain (TLD) approved by MIIT (including .cn or .com).
  • The domain name must be registered with a licensed registrar that has been approved by a provincial arm of MIIT.
  • The registrant of the domain name must complete a Real Name Verification (RNV).
  • If an organization is hosting a website within China (a recommended option), they must obtain an Internet Content Provider (ICP) number from MIIT.

When hosting a live website in China, the organization must work with a company that fully understands the regulations and requirements the domain must meet to apply for the ICP license. When applying for a domain name, organizations must bear in mind:

  • Your registrar must be an MIIT approved registrar in China.
  • Your company must be incorporated in China.
  • The WHOIS must be in Chinese characters and match your Business Registration Certificate.
  • The telephone number must be Chinese (i.e., start +86), and it must have a valid email address.
  • The domains registered for defensive purposes will not have the same requirements.

So, whether you’re a domestic Chinese company or an international company operating in China, it’s important to make sure you’re fully aware of these regulations, use a partner that allows you flexibility in the management of your domain names, and provides you clear guidance at the time of registration.

The needs of local Chinese companies and global companies operating in China

Local Chinese company

If you’re a Chinese company, you’ll want to work with a local registrar who can ensure your domain names meet the requirements to apply for an ICP, and above all, offers a secure platform to your important assets.

lobal company operating in China

As with a Chinese company, you’ll want to ensure you meet the regulations for the active domain names used in China. However, you’ll also want the rest of your portfolio managed outside of China, as they won’t have to adhere to the same restrictions.

Guide to Navigating the Chinese Market
Figure 1: Most companies are unable to consolidate their domain portfolio under a single domain name provider, as Chinese providers may not be globally accredited and vice versa.

In truth, there are many providers that can offer either one of these solutions (see Figure 1). There are currently over 70 accredited registrars, mostly local registrars based in China. However, depending on your business and your global outreach, this means it’s extremely important to look for a provider who can support in-country registrations as well as offer all domain names outside of China.

Choosing a registrar for a large organization is not just about capabilities, but also about security—which is extremely important in today’s world. There’s a clear difference between a retail-class registrar and an enterprise-class registrar. Here are things to look for:

  • Provision of 100% domain name system (DNS) uptime, including local servers within China.
  • Secure systems that have two-factor authentication and are resilience tested.
  • Registry locks to prevent unauthorized changes to nameservers.
  • 24×7 support.

CSC became the first foreign-owned company to receive a domain registrar license in China in 2020, and is able to provide comprehensive domain name registrations across registries in compliance with local requirements. With the use of our accreditation and local partnerships, CSC can manage domains both inside and outside of China using our market-leading CSCDomainManagerSM system.

Managing domain names is complex and requires a partner that can guide you through the regulations. To prepare yourself for working in China:

  • Understand the list of domain names you host within China.
  • Find a partner, like CSC, who can provide both in-country and international domain registration strategy.
  • Understand the requirements of the RNV for MIIT accredited TLDs.
  • Understand the requirements your domain must meet to apply for an ICP license.
  • Make sure the domains in the Chinese market have the same security layers as the rest of your portfolio.

To find out more, watch our recent webinar [LINK] on how CSC’s latest capability centralizes and streamlines domain name management in China, while ensuring data security, scalability, and cyber resilience for our clients.”

To find out more about the RNV process and CSC’s best practices in China, please contact your account manager or click here.

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