On March 25th, 2016, the Ministry of Industry and Information Technology (MIIT) officially posted its revisions to the “Chinese Measures for the Administration of Domain Names” (2016 edition) for public comment. A decade has gone by since the latest administration measures were introduced in 2004 (2004 edition). Registries and registrars have been longing to see this update for a while, and it is therefore no surprise that the new edition has drawn substantial attention at home and abroad.

It is understandable that different stakeholders of the domain name industry—registries, registrars, registrants, and even hosting providers—may have different opinions and concerns regarding the new regulation. This article will focus on the provisions for registry licensing. First and most important, the establishment of registry operators in the territory of the People’s Republic of China must obtain a license from MIIT, which has not changed in the 2016 edition from the original 2004 regulation. Second, when it comes to application requirements for MIIT approval, the 2016 edition lists them in detail in Article 11, while the 2004 edition does so in Article 12. It is worth also noting that Article 11 combines some items listed in Article 14 of the 2004 edition. The following table compares the similarities and differences between the two editions.

Excepting for subtle differences in statements, word selection and the order of the sentences, any overseas registry operators intending to enter into the Chinese market should pay special attention to essentially four aspects. First, one million CNY in registered capital is no longer a requirement for registry approval. Second, the “TLD management system”, a term with broader scope in the new edition, replaces “TLD name server” in the old regulation. The exact meaning of the term is defined for the first time. The TLD management system, according to the regulation, includes the shared registration system, registration database, domain name system, WHOIS system, and real name verification system, etc. Third, registry operators are explicitly required to have the capacity for real name verification. This is a confirmation of the practices that have already occurred in reality. Fourth, the new edition states that a registry license will be valid for 5 years (Article 16). Overall, the revised edition of the regulation provides a more explicit and specific guideline for registry license applications. The requirements are not only reasonable but also practical for all applicants.

Over the past half a year or so, all overseas applicants we know have prepared their application materials strictly in accordance with the new edition of these regulation. The release of the request-for-comments regulation will ensure that what they have done is correct. As we have emphasized in other places, the most critical thing for foreign registry operators is to find the right partner in China that can satisfy the requirements of the TLD management system. As the number one New gTLD market, the Chinese domain name market is still booming. We have no doubt that new registry players will be allowed to engage in it soon, which will certainly make it a better place.