E-Business Law in China By Chris Hartnett

Signatures in China Function of a signature is to provide evidence of Function of a signature is to provide evidence of –Identity of the signatory –That the signatory adopts the contents of the document Only acceptable forms are handwritten signature and seal Only acceptable forms are handwritten signature and seal

Current Signature Law data in electronic form contained in or attached to a data message and that is used to identify the signatory and indicate his endorsement of the contents of such document data in electronic form contained in or attached to a data message and that is used to identify the signatory and indicate his endorsement of the contents of such document Emphasizes the function, not form Emphasizes the function, not form

Cont. Once parties decide to use electronic signatures, the validity cannot be challenged Once parties decide to use electronic signatures, the validity cannot be challenged Person is responsible for their own signature Person is responsible for their own signature

Reliable Electronic Signatures (RES) Stricter rules governing creation of RES Stricter rules governing creation of RES –Controlled only by the signatory –Any change to the signature can be noticed Issued by a government office (ECSP) Issued by a government office (ECSP) RES recognized worldwide RES recognized worldwide

Strengths of the Act Technology neutral Technology neutral Clearly defined terms Clearly defined terms Clear on when a contract ends and begins Clear on when a contract ends and begins

Weaknesses of the Act No valid rules on RES identification No valid rules on RES identification Liability with electronic signatures Liability with electronic signatures

How to Prevent your RES from Being Stolen Keep your RES in a secure location Keep your RES in a secure location –Password protect files Use wired keyboards Use wired keyboards Store your RES on portable hard drives Store your RES on portable hard drives