No one can deny that the Chinese market is one of the most lucrative business landscapes in the world. Over the years, the country’s growing presence on local social media and e-commerce channels has enticed many foreign brands to start advertising in China. However, China has very strict regulations when it comes to advertising.

 

To address the rapid evolution of mass media, the government implemented stringent Chinese advertising laws. These laws aim to combat false and misleading content while strengthening consumer protection across various industries, particularly those related to healthcare and medical services.

 

In this guide, we will walk you through the terms of China’s Advertising Laws and how they affect your promotional campaigns within the local market.

 

How Do Companies Advertise in China?

Around 87% of the overall advertising business landscape in China is dominated by online ads. Foreign companies operating within the Chinese market have the option to launch promotional campaigns through various formats and channels, such as search engines and social media platforms.

 

 

Ad Spending by Media in China

Considering the continuous growth of online consumers in China, local experts predict that digital advertising content penetration will reach 90% by 2027. This trend has prompted the Chinese government to organize relevant departments to execute market regulation.

 

What Are The “Absolute Terms” In The New Advertising Law In China?

The Chinese advertising law states that “absolute terms” refer to words like “the most,” “the best,” or similar phrases. These exaggerated expressions are carefully regulated to protect public welfare and prevent consumers from being misled by false content. Regulatory bodies are aware of the vagueness of this regulation. Thus, penalties for illegal advertising conduct take effect under specific contexts that exhibit potential social harm or the intent to mislead consumers.

 

 

Industries With Highly Regulated Advertising Laws In China

 

1. Educational Facilities

The Chinese educational market is a $1.64 billion industry that offers many business opportunities for local and foreign brands. However, it is highly regulated by local advertising laws due to the high expectations of Chinese parents for their children’s education.

Regulations:

• False advertisements promising specific outcomes, such as assured exam success, are not allowed.
• Misleading use of academic organization or industry professional’s names, likenesses, or affiliations is prohibited.
• Testimonials from former students cannot be used to endorse educational programs.

 

2. Real Estate

When advertising real estate, the law dictates that property dimensions must be accurately stated, specifying whether the area mentioned refers to the total building space or the internal area of the apartment.

Regulations:

• No promises of financial returns or increased property value.
• Promotional materials must align with China’s pricing regulations.
• Deceptive claims about transportation, cultural, educational amenities, or other pre-planned infrastructure are prohibited.

 

3. Healthcare and Medical

Advertising for prescription drugs is strictly confined to specific medical and pharmaceutical publications, excluding narcotics and medications intended solely for medical professionals.

Regulations:

• Specialized medications, medically utilized toxins, and radioactive pharmaceutical products cannot be advertised.
• Health products that could impact minors' physical and mental health cannot be advertised.
• Prohibition extends to medical treatment, health food, and beauty regimens.

 

4. Alcohol Brands

China’s advertising laws for alcoholic beverages are stringent. Ads must not encourage alcohol consumption or imply it is safe to drink and drive.

Regulations:

• Ads must not suggest that alcohol consumption can lead to relaxation, reduce anxiety, or enhance physical capabilities.

 

5. Tobacco Brands

Tobacco brands face strict regulations. Ads for tobacco products are not allowed in mass media or public areas.

Regulations:

• Public communications, such as relocation notices, must avoid identifiable aspects of tobacco products.

 

 

6. Regulatory Landscape for Fintech Businesses

Fintech products, including online lending and other financial services, are regulated based on specific systems. Brands must obtain licenses or make registration filings before running ads in China’s digital landscape.

Regulations:

• Compliance with censorship laws is mandatory.
• Deceptive methods, such as requiring multiple clicks to close ads, are prohibited.

 

7. Other Products Prohibited From Launching Online Ads

All advertisements in China’s digital ecosystem must comply with government mandates, and most local platforms have their own metrics and guidelines. For example, most restrict paid promotions for medical treatments, devices, services, or healthcare products.

Regulations:

• Businesses cannot promote auction houses, franchise opportunities, sexual products, or cryptocurrencies.
• Content threatening political stability will be censored.

 

Restrictions on Mass Media Aimed at Children

Paid promotions within educational institutions are strictly regulated to protect children from commercial exploitation. Advertising laws prevent unsafe practices and discourage marketing that pressures children to influence their parents’ purchasing decisions.

 

Specific Content Restrictions Based on Advertising Law

China’s content restrictions align with international standards. Advertisers must release campaigns with accurately presented data and appropriate sources cited.

Prohibited Content:

• Misuse of national symbols, government organization names, or personnel imagery.
• Content damaging China’s dignity or disclosing government secrets.
• Marketing materials disrupting order or contradicting social norms.
• Content posing risks to personal data privacy or safety.
• Obscene, pornographic, gambling-related, superstitious, terroristic, or violent content.
• Discriminatory content based on ethnicity, race, religion, or gender.
• Content encouraging harmful environmental, natural resource, or cultural heritage practices.
• Any other content expressly prohibited by Chinese law.

 

What Are The Penalties For Not Following Advertising Regulations In China?

Illegal advertising campaigns undergo thorough investigations. Penalties depend on the violation's severity, with fines ranging from 100,000 RMB to 1 million RMB. Severe violations can result in the revocation of business licenses.