Your Guide to China’s Advertising Law in 2023

Recently, there has been an increase in requests for advertising campaigns in China, particularly focusing on Baidu.

Advertising on Baidu presents a unique set of opportunities:

• Baidu allows foreign businesses, not registered in China, to advertise their products and services.
• It’s the most popular search engine in China, reaching a vast user base.
• Unlike organic SEO, advertising on Baidu yields quick results.
• Chinese users place significant trust in search ads. The reasons for this will become apparent as you read through this article.

The difference between Baidu and Western search engines like Google lies in its stricter regulations. If anyone, even a house cat, could randomly tap a keyboard to start an ad campaign on Google  (this is an actual example from personal experience), Baidu is a different ball game. Here’s why:

Baidu is a Chinese search engine.

Therefore, you’ll need a Chinese website for Baidu. While Baidu does index sites in English and other languages, it doesn’t do it efficiently. For effective results, you should consider a dedicated website in Simplified Chinese as the primary language.

Your website also needs to be optimized for use in China. That means it should at least be accessible from within the country. To cut a long story short, China has a powerful firewall in place. To overcome it, you need either to get an ICP license and host your site within China, or optimize your site and host it in Hong Kong.

You can find detailed information about creating a Chinese website here, and order a China-ready website from this link.

This is essential because:

• Firstly, your site’s loading speed and accessibility are critical factors in Baidu’s evaluation process for setting up a business account. If your site doesn’t meet the requirements, your application will be rejected and you can’t run any ads.
• Secondly, even if your application does go through, imagine the disappointment when a Chinese user clicks on your ad link only to find that they can’t access your website. You’ve spent your budget, but the conversion rate is close to zero.

To start an ad campaign on the Chinese search engine, you need to create an account.

Setting up a Baidu business account can be a challenging bureaucratic process. Learn what a Baidu business account is, who can open one, and the registration procedure. Only registered companies can advertise and create accounts for Baidu’s contextual advertising; individuals or sole proprietors do not have this option.

There are also various restrictions and regulations, including a law on advertising, banned industries, and additional prohibitions and limitations specific to Baidu.

So, brave entrepreneur, get ready to dive deep into the vast ocean of China’s advertising market in 2023, where understanding equals survival. Hopefully, this brief guide will help you on your journey.

China’s Advertising Law: A Journey Through Time

Like a river carving its path through a valley, the China Advertising Laws have shaped and reshaped themselves over the years, adapting to the ever-changing landscape of market dynamics and consumer behavior. The law has seen several amendments, each one a stepping stone in the journey towards more transparent, ethical, and consumer-friendly advertising. From putting a leash on the use of ‘absolute terms’ in advertising to tightening the reins on certain industries, the law has come a long way. Understanding this evolution is like having a map of the terrain – it gives you a better perspective on why the law is what it is today.

Unpacking the Advertisement Law of the People’s Republic of China

The Advertisement Law of the People’s Republic of China is like a Swiss army knife for advertisers. It’s a comprehensive piece of legislation that covers various aspects of advertising. It provides a legal framework that businesses must adhere to when advertising their products or services in China. The law covers general advertising regulations that all businesses need to follow, as well as specific industry advertising regulations. It also includes rules about celebrity endorsements, advertising to children, and content restrictions for advertisements. Violations of the law can lead to penalties, so it’s important to understand what the law entails. It’s like knowing how to use every tool in your Swiss army knife – you never know when you might need one!

The Do’s and Don’ts of Advertising in China

The general advertising regulations in China are like the basic survival skills needed in the wilderness. They require that advertisements be truthful and not misleading. The use of data, quotes, and survey information in advertisements must be accurately represented and sourced. Advertisements must also be clearly identifiable as such and cannot be in the form of news reports. These regulations are designed to protect consumers and maintain the integrity of the advertising industry. It’s like leaving no trace when you’re camping – it keeps the environment clean and safe for everyone.

The No-Go Zones: Banned Industries for Advertising in China

Just like there are certain areas in the wilderness that are off-limits, there are certain industries that are banned from advertising in China due to their sensitive nature or potential to mislead consumers. Here’s a list of some of the industries that face advertising restrictions in China:

• Pharmaceuticals: If you’re trying to advertise prescription drugs in China, you’re gonna have a bad time. It’s a big no-no. Over-the-counter drugs can be advertised, but they must comply with specific regulations and must not make false or exaggerated claims about their effectiveness.
• Tobacco: In line with global trends, China has strict regulations against tobacco advertising to curb smoking rates and promote public health.
• Alcohol: While not completely banned, alcohol advertising is subject to certain restrictions. For instance, advertisements should not encourage excessive drinking or suggest that alcohol consumption can enhance social, physical, or sexual performance.
• Obscenity and Pornography: Any form of advertising for obscene or pornographic materials is strictly prohibited in China.
• Gambling: China has a strict policy against gambling, and as such, advertising for gambling services orplatforms is banned.
• Superstitions: Advertising that promotes superstitions or pseudoscience is not allowed. This includes services like fortune-telling or products claiming to have supernatural properties.
• Violence and Terror: Any advertising content that promotes violence, terror, or harm to social stability is strictly prohibited.

In addition to these government restrictions, China’s largest search engine, Baidu, has its own set of restrictions. Baidu’s advertising policies are designed to ensure that the content served to its users is safe, appropriate, and trustworthy. Here are some industries that face restrictions on Baidu:

Advertising restrictions on Baidu

• Medical Apparatus and Instruments: Businesses in this industry are not allowed to advertise on Baidu. This is likely due to the potential for misleading claims about the effectiveness of medical devices.
• Medical Treatment and Health Industry: Similar to the restrictions on medical apparatus and instruments, businesses in the medical treatment and health industry are also not allowed to advertise on Baidu.
• Healthcare Products Industry: Baidu restricts advertising for healthcare products to prevent the spread of misleading or false information about these products.
• Financial Services: Baidu has strict regulations for advertising financial services to protect users from potential scams or fraudulent activities

Baidu Financial Services regulations and restricrions 

Navigating the minefield of financial services advertising on Baidu? Strap in, it’s a wild ride. Baidu has put in place stringent regulations for advertising financial services, all in a bid to shield users from potential scams or fraudulent activities. Given the potential risks and consequences associated with financial transactions, this industry is under the microscope.

To advertise financial services on Baidu, you’ll need to jump through a few hoops. Don’t worry, we’ve got the list. Businesses must provide accurate and transparent information about the services offered, clearly state the potential risks associated with the service, and avoid making false or exaggerated claims about potential returns or benefits.

For instance, if you’re advertising loans, you better be as transparent as a freshly cleaned window. No misleading consumers about the terms here! This includes the interest rates and repayment terms. Similarly, advertisements for investment services must not guarantee returns or downplay the risks associated with investing.

And don’t even think about advertising certain types of financial services on Baidu. Baidu will shut that down faster than you can say ‘violation’. Here are some of the financial services that are completely off-limits:

1. High-Interest Loans: These types of loans, often associated with predatory lending practices, are a no-go area.
2. irtual Currencies: Given the volatility and regulatory issues surrounding cryptocurrencies like Bitcoin, Baidu has put a blanket ban on their advertising.
3. llegal Financial Services: Any financial services that are illegal in China are, of course, banned from being advertised.

In addition, Baidu requires businesses in the financial services industry to obtain certain licenses and qualifications before they can advertise on the platform. This is to ensure that the businesses are legitimate and capable of providing the services they advertise.

Navigating the Rapids: The Complex Terrain of China’s Advertising Laws

In the intricate labyrinth of Chinese business regulations, each industry faces its unique set of challenges and obligations. From real estate and education to healthcare and the alcohol and tobacco industry, the path to success involves adeptly mastering the specific advertising rules that govern each domain.

Real Estate Advertising in China

In the competitive realm of real estate, an unwavering commitment to transparency and accuracy forms the cornerstone of advertising ethics. A quick scan of the key considerations paints a clear picture:

1. Clarity of Space: Advertisements must clearly differentiate between the overall building area and the usable space within an apartment. The onus is on advertisers to ensure that the potential buyers are not misled.
2. No False Promises: Offering promises related to returns on investment or property appreciation is strictly off the table, signaling a stringent stance against misleading practices.
3. Regulation Compliance: Any infractions against the state’s price management regulations could lead to significant consequences. This includes the improper portrayal of transportation time or facilities, cultural and educational facilities, and planned facilities.

Education Advertising in China

The arena of educational advertising necessitates a fine balance between inspiring ambitions and upholding the truth. Here’s what one needs to bear in mind:

1. Beware of Guarantees: Explicit or implicit guarantees about future results are prohibited. So, claims regarding passing exams, securing admission into higher education institutions, or degree attainment, are not permitted.
2. Avoid False Claims: Misleading assertions about examination institution staff or test-setting personnel having completed the program are unequivocally discouraged.
3. Endorsements: Unauthorized use of names or images of entities or professionals for endorsing a program is another red flag that advertisers need to avoid.

Healthcare/Medical Advertising in China

The healthcare and medical industry has its unique set of rules designed to protect the most vulnerable consumers. Some key points are:

1. Prescription Drugs: Prescription drugs can only be advertised in specialized medical and pharmaceutical publications.
2. No Advertising for Special Drugs: Certain categories of drugs, such as narcotics, medical-use toxins, and radioactive drugs, have a strict no-advertising policy.
3. Protection of Minors: It’s imperative to avoid advertising any products or services that could potentially impact the physical and mental health of minors on mass media platforms.

Alcohol and Tobacco Advertising in China

The rules get stricter when it comes to advertising for alcohol and tobacco. It’s essential to recognize:

1. No Glorification of Consumption: Alcohol-related advertisements cannot encourage or directly depict the act of alcohol consumption.
2. Tobacco Regulations: Tobacco products, including its name, trademarks, packaging, or any relatable features, cannot be advertised on mass media platforms, public places, public transportation, or outdoors.

Special Considerations in China Advertising Law

Understanding Chinese Advertising Law also necessitates paying attention to some unique aspects that add further complexity.

Restrictions on Advertising to Children in China

Ensuring the welfare of minors forms a significant component of China Advertising Law. Here’s what advertisers must remember:

1. Avoid Health Risk Products: No advertising for products or services that can impact the physical and mental health of minors can be featured on mass media, or in public places where minors gather.
2. No Manipulative Tactics: Advertisements cannot compel minors to persuade their parents or other adults to purchase the advertised products or services.

Rules Around Celebrity Endorsements in China

The star-studded world of celebrity endorsements in China is not without its own set of rules. These include:

• Experience with the Product: Celebrities endorsing a product or service must have personal experience with it.
• Accountability: They are required to ensure the authenticity of their endorsements and are held accountable for false advertising. If a celebrity endorses a product or service that harms consumers due to false advertising, they can be banned from making any endorsements for three years.

Advertising Content Restrictions in China

Advertisers must adhere to certain content restrictions designed to protect consumers and maintain the integrity of the advertising industry:

• Honesty: Advertisements must not contain false or misleading content.
• Respect for Public Interests: They must not violate social public interests or consumer rights and interests.
• Safety: They must not endanger social and public safety.
• Economic Order: Advertisements must not disturb the social economic order.

In this labyrinth of regulations, understanding and implementing the specific rules for each industry becomes a gateway to success in the Chinese market. Not only does it ensure compliance, but it also fosters a positive and trustworthy image among consumers, boosting the potential for long-term growth and success.

Comprehending the Chinese Advertising Law: An Insight into Violations and Penalties

Operating within the framework of any country’s advertising laws can be a tricky endeavor, and China is no exception. Its advertising law, known as the Advertisement Law of the People’s Republic of China, is stringent, resulting in considerable consequences in the event of violations.

Consequences of Non-Compliance

While the opportunity to tap into the massive Chinese market is enticing, it comes with its fair share of responsibilities. The consequences of non-compliance are severe. Fines can range from 100,000 RMB to 2 million RMB, based on the gravity of the violation. In more extreme circumstances, your business license might be revoked, and your advertisement review approval document could be denied. For medical institutions, the repercussions might even extend to the loss of their practice license.

Penalties for False Advertising

Suppose you make use of absolute terms in your advertising, but fail to validate the authenticity of your claims. In that case, the penalties articulated in the Advertising Law apply. The law explicitly states that anyone publishing prohibited advertisements may be directed to cease the ad’s publication and could be fined between RMB 200,000 and RMB 1 million. Under serious circumstances, the offender’s business license may be revoked.

Ramifications for Advertising Agencies and Publishers

Advertising agencies and publishers also fall under the purview of these laws. Non-compliance can lead to the confiscation of their advertising fees and fines between RMB 200,000 and RMB 1 million. In severe cases, the business license and advertisement release registration certificate might be rescinded.

Essential Takeaways for Navigating China Advertising Law in 2023

Traversing the intricate landscape of China’s advertising laws can be daunting, but it’s an imperative aspect for businesses eyeing success in this market. Here are some key considerations to keep in mind for 2023:

• Know the Rules: Acquaint yourself with the Advertisement Law of the People’s Republic of China and any platform-specific regulations. This includes restrictions on content, the usage of absolute terms, and the laws specific to different industries.
• Respect Your Audience: Certain demographics, such as children, have additional protective regulations. Ensure that your advertising is compliant and suitable for your target audience.
• Uphold Accuracy: Be sure that all data, quotes, and survey information included in your ads are accurately represented and correctly sourced. Misleading or false advertising can lead to hefty penalties.
• Celebrities and Endorsements: If you’re leveraging a celebrity endorsement, it’s essential to ensure that they have first-hand experience with your product or service. Remember that minors under the age of 10 are not allowed to be spokespeople.
• Prepare for Penalties: Violations of China’s advertising laws can result in substantial fines and other penalties. Stay prepared to face these consequences if compliance is not maintained.

Navigating these laws with care not only minimizes risk but also fosters trust and credibility with your Chinese audience – an invaluable asset in this promising market.