The new tax policies on cross-border online business will also affect private overseas e-business.  

Private overseas online retailers usually do business in two ways. One is to purchase goods overseas in person, and take the goods back, and sell them on China's e-Bay-like platform Taobao.

The other way is to make purchases on overseas e-commerce platforms, and mail to China through overseas parcel transfer companies. Now private online purchases not conducted via online cross-border retailers will be taxed. 

"Personal overseas parcels will be subject to personal postal articles taxes. Before there were 4 levels of this kind of tax, at 10, 20, 30 and 50 percent. Now there are just 3 levels. The highest level will be taxed at 60 percent of the goods value," said Zhang Li, Deputy Director, E-Commerce Research Dept., Ministry of Commerce.

Food, drink, and books will be taxed at 15 percent, a 5 percent increase on the previous policy. Luxury watches will be taxed at 60 percent, a 30 percent increase. The new policy means the cost of many expensive overseas online purchases will rise by quite a large amount.