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Virto Commerce has deployed B2B ecommerce platforms in China for global manufacturers, handling data sovereignty, ICP compliance, and integration patterns where support from others is often limited. This expertise from real-world rollouts—like optical equipment manufacturers replatforming after 13 years—guides our insights.
Can you just extend your global ecommerce platform into China?
No.
Most of the time, with the rarest of exceptions, the answer to that would be No. Unless you’re willing to go through significant architectural challenges, make operational compromises, and extend your project timeline by at least two times the original plan.
But frankly, the challenge with China ecommerce rollout is not so much about the technical capabilities, but rather the regulatory requirements, the technical infrastructure, and unique local business practices. All that creates a fundamental conflict with how ecommerce operations are typically structed globally.
This creates a tension for every B2B enterprise.
So how do you maintain global operations while meeting China’s rigid requirements?
The answer lies in architecting a system that accommodates both.
Tip: China’s ecommerce market offers massive opportunities, but as outlined in our guide “Launching eCommerce in China: Everything B2B Enterprises Need to Know”, success demands more than localization. It's about navigating ICP licenses, data sovereignty, and local infrastructure from day one. Read the full guide for deeper insights into B2B launch requirements.
Data localization requirement in China creates a unique unification challenge.
According to the Personal Information Protection Law (PIPL) and Data Security Law, all data collected in China must stay in China. Cross-border transfers are possible, but require an official explicit permission, and even then, it’s scrutinized and limited.
Your ecommerce platform in China collects customer data (names, contact information, payment details, browsing history). Under PIPL, this data is stored on servers that are physically located in China. A simple data replication or transfer to your global CRM for analytics, customer service, or reporting is not possible.
This isn’t a theoretical tension.
Data-localization measures bloom around the world and have more than doubled between 2017 and 2021, leading to a drop in global productivity by 0.7%.
In China, only 25% of all cross-border data export applications were approved in 2024, creating a serious data fragmentation challenge despite available technology. The regulatory framework creates an inherent conflict between business integration needs and localization rules.
The sovereignty-integration tension manifests in specific operational challenges that affect daily business.
China is such a unique case that many enterprises tend to underestimate how much more and the level of investment the Chinese market requires.
It’s tempting to treat it like any region, but the plug-it-with-minimal-modification method fails consistently. According to Japan’s Research Institute, foreign company withdrawals exceed new investments. Floship reports that as many as 48% of foreign businesses fail in China within first two years.
While each business has its own reasons why Chinese expansion doesn’t work, the failure to properly unify Chinese and global operations is a common pitfall.
Here is the business case for proper unification.
There are four architectural patterns that companies choose from when planning ecommerce launch in China. Each comes with its own tradeoffs.
|
Pattern
|
Description
|
Advantages
|
Disadvantages
|
Best For
|
|
|---|---|---|---|---|---|
|
Complete Separation (2 Platforms) |
Standalone Chinese instance: minimal global connections, own databases, logic, and UI.
|
Simplest compliance path. No data violation risk. Optimized performance. Local customization freedom.
|
Duplicate maintenance and development. No global visibility. Manual financial reconciliation. Inconsistent multinational UX.
|
Cautious market entry. Testing fit. Limited integration needs.
|
|
|
Hub-and-Spoke (Controlled Transfers) |
Separate platforms with approved integration points. Anonymized or aggregated data flows via consent mechanisms.
|
Compliance and essential integrations: consolidated BI/reporting, multinational account support, global visibility balance.
|
Complex governance. Data latency. Ongoing compliance burden. Needs middleware or classification.
|
Mature compliance teams. Defined integration needs justifying complexity.
|
|
|
Global-First (China Exceptions) |
Unified platform with China-specific modules and data segmentation. Swap payments and search via composables.
|
Single codebase. Consistent logic. Easier global features. Lower TCO.
|
Must architect residency upfront. Performance compromises. Complex infra. Compliance enforcement risk.
|
Cloud-native platforms. Strong residency features. Standardized processes.
|
|
|
Micro-Services (Regional Deployment) |
Independent services per region. APIs with data controls. China services handle local data.
|
Max local optimization. Natural residency enforcement. Independent scaling. Best performance.
|
Highest design/ops complexity. Needs advanced DevOps/mesh. Distributed challenges (latency/consistency). High upfront investment.
|
Advanced engineering. Complex needs. Long-term China commitment
|
A global optical equipment manufacturer recently faced this exact challenge when launching e-commerce operations in China as part of a full platform replatforming. After 13 years on a home-built system, they needed a solution that could handle both their global operations and a completely separate China instance.
The customer needed extreme flexibility for complex business rules that varied by market, tight integration with their existing ERP systems, and—critically—a fully isolated China deployment that maintained data sovereignty while still enabling essential business processes globally.
Rather than attempting to extend their global platform into China with data transfer compromises, Virto and the customer chose to deploy a separate China instance on local hosting with sophisticated synchronization pipelines between global and China systems.
This ensured unified customer experience across borders—Chinese users see their global orders, and vice versa—while respecting compliance boundaries.
This decision was driven by:
No other platform could deliver the extreme flexibility this manufacturer needed for China-specific pricing, isolated data residency, and ERP integration while supporting global operations.
By choosing complete separation with the right platform foundation, the customer achieved compliance certainty, optimal performance in both regions, and the ability to iterate on each market independently.
While they maintain separate operations, the shared underlying platform architecture means learnings and capabilities can be adapted between regions without duplicate foundational work.
This case illustrates that "separation" doesn't mean starting from scratch in each region.
It means deploying the same platform foundation with region-specific configurations and data boundaries. The manufacturer avoided both the compliance risks of forced unification and the inefficiency of truly independent systems by choosing a composable platform that could support both patterns.
The right architecture gives you options. You're not locked into one integration pattern forever. As your operations mature and compliance frameworks evolve, you can adjust your approach without rebuilding everything.
Despite the wealth of ecommerce platform options, not all of them can effectively support unified operations across the globe plus China.
Key ecommerce platform capabilities for China launch include:
Tip: Virto addresses these requirements directly. Virto Commerce’s platform is built on modular and API-first principles, fully supporting deployment of the same platform logic to regions with geographic data boundaries and allowing for easy component swap for China-compliant alternatives.
B2B enterprises that successfully unify global and China operations often follow a phased approach.
Phase 1: Define requirements. Before any solutions are designed, creat a list of data and processes that must integrate between China and the rest of the world. Think about reports, customer scenarios, operational workflows that might require cross-border coordination. Once you have the list, filter through it and be ruthless with prioritization.
Phase 2: Design the framework for data governance. Create a data classification and specify which parts stay in China, what can be transferred under special conditions, and what’s not affected by data residency rules. Map the results against our business workflows and consult with legal experts to make sure the framework aligns with Chinese regulations.
Phase 3: Build an MVP. Starting with the simplest architecture that meets your core requirements. Prove the concept before you invest in more complex solutions. For example, for financial consolidation you can get away with periodic aggregated exports first. Once you’re confident that it works, move to real-time integration.
Phase 4: Validate compliance. Launch with a pilot customer segment or product category to validate architecture against compliance rules under real operating conditions.
Phase 5: Iterate, scale, repeat. Expand capabilities once you gain confidence, add more sophisticated integration patterns, optimize performance, and expand customer coverage. As you scale, maintain strict data governance to avoid compliance risks.
Virto Commerce's composable platform supports multi-region deployment with built-in data residency capabilities, flexible integration patterns, and the modular architecture needed to swap China-specific components without compromising global consistency.
Book a call with one of our team to learn more about Virto’s experience with ecommerce launch in China and discuss your unified operations strategy.