An electronic signature, i.e., e-signature, which shows that a person has approved an agreement, contract, or a form that requires approval, has official validity in many countries around the world, including China. The result of this digitalization is an essential process because many transactions are now carried out over the internet. Digital contracts, approved with a digital signature, prevent paper waste as well as ease of transfer and storage. As of 2022, over 1 billion users worldwide have confirmed many documents, from bank documents to subscription agreements, using e-signature. 

Using Electronic Signature in China

Applications that require e-signatures are increasing rapidly, so their use will inevitably increase. Technologies and solutions for creating e-signatures, such as simple signature images attached to electronic documents or PKI-based signatures, are being applied in more and more areas. 

China's experience in the use of e-signatures goes back many years, like its counterparts in the USA and Europe. So e-signatures have been legally recognized in China since 2004. The use of e-signatures in China is regulated by the Electronic Signature Law ("ESL"), except for Hong Kong, Macau, and Taiwan Region. 

Laws Regulating the Use of Electronic Signatures in China

In 2015 and 2019, the People's Republic of China Electronic Signature Law was revised to strengthen the legal basis for determining the validity of electronic legal instruments. Guidelines containing revisions in the Human Resources and Social Security field were prepared in 2020. Since 2021 (HRMSS) has enabled employers in China to conclude electronic employment contracts with their employees. 

ESL will continue to be revised with new guidelines and regulations as digitalization increases and risks, advantages, and new uses for e-signature use are identified. According to ESL, a signature that meets the conditions of being a "trusted e-signature" has the same legal validity as handwritten signatures or company stamps. 

Many recorded cases in China were approved with e-signature and then disputed between the parties. Apart from exceptional circumstances and other defects of companies that have made transactions with signatures, an e-signature is considered no different from a hand-signed signature in Chinese courts. Many concluded cases show that contracts and contracts approved by electronic signature are binding for the signatory. 

Areas Covering the E-signature Application in China

ESL states that e-Signature can be used for signing general employment contracts and commercial documents in China. E-signatures can also be used in many documents issued by the government. 

Some of the agreements, contracts, and documents that can be confirmed with e-signature in China: 

· Documentation of company employee benefits

· Recruitment paperwork

· Sales contracts

· Service contracts

· User guides for products and services

· Service Policies

· Confidentiality agreements

· Purchase orders

· Software licenses

· Government Filings

· Real estate, Banking, Insurance contracts 

With ESL, e-signature is not valid for documents and documents prepared for the following transactions. In order for such transactions to be officially valid, the parties must sign manually.

· Documents related to adoption.

· Marriage certificate

· Documents that will cause the cancellation of public services

· Documents containing the sale and transfer of immovables, such as residences and land 

Electronic Signature Reliability and Authentication

An electronic signature is data attached to a document in the electronic environment to determine who the signer is. Verifying e-signatures is done through trusted certificate authorities (CAs) or trusted service providers (TSPs). Information showing the verification details of each digital signature is listed below the signature. 

ESL does not contain a standard for certifications required for an e-signature to be considered valid in China. However, third-party providers offering digital certificate services must meet the requirements of Chinese law and be approved by Chinese authorities in order to provide digital certificate services. 

ESL defines e-signatures as electronic data to identify the signer and show that the signer recognizes what is in the message. According to ESL, contracts or documents prepared with e-signatures that do not meet the reliability standards will be deemed invalid. For this reason, the minimum qualification requirements for reliable e-signatures are listed below:

· Signature creation data should only be linked to the signatory. It does not cover third parties.

· E-signature creation data is accepted exclusively under the control of the electronic signature owner at the time of signature.

· The e-signature should be able to detect if a change is made after it is issued. 

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