Market Access Regulations for Foreign Investment in Cross-border E-commerce: A Comparative Study Between China and Malaysia
Year: 2025
Type: article
Abstract: This study conducts a systematic comparative analysis of market access regulations for foreign investment in cross-border e-commerce between China and Malaysia. Drawing on current regulatory frameworks and implementation practices, the research identifies significant patterns of convergence and divergence in how these two countries regulate foreign participation in their digital economies. Malaysia has adopted a relatively open framework characterized by streamlined registration procedures, liberal foreign equity policies, and transparent enforcement mechanisms, positioning itself as a gateway to ASEAN markets. In contrast, China maintains a more complex regime with multi-layered approval requirements, significant sectoral restrictions, and interventionist enforcement practices, reflecting its emphasis on digital sovereignty and state-directed economic development. The research highlights specialized economic zones—Malaysia's Digital Free Trade Zone and China's Cross-Border E-Commerce Pilot Zones—as key instruments of regulatory innovation in both countries. Case studies of Chinese e-commerce platforms entering Malaysia and Malaysian digital businesses entering China reveal asymmetric market access conditions with practical implications for investors. This comparative analysis contributes to our understanding of how different legal traditions and regulatory philosophies shape digital economy governance, while offering strategic insights for investors navigating these complex regulatory environments and policymakers seeking greater harmonization.
Authors: XIAOTIAN CUI, HONGQIANG ZHAO, KEXIN WANG
Institution: University of Malaya
Language: English
Subfield: Strategy and Management
Domain: Social Sciences
Open Access status: hybrid
OpenAlex ID: W4410119951