A taxing issue for online shops

E-commerce may lose its competitive edge, report Yang Wanli and Chen Limin in Beijing.

It started a year ago, when China issued its first regulation targeting online trade and services. Then, last month, Wuhan city officials collected more than 4.3 million yuan ($665,000) in tax from a company that sells clothing online.

Rumors flourished: Is the government going to start taxing online sales? What does that mean to my business - or my shopping habits?