The country's first e-commerce legislation is being drafted to regulate a market that boasts 1.1 trillion yuan ($175 billion), according to government sources.

Legislation covering online transactions and services was put on the agenda by two legislative bodies under the 12th National People's Congress, said Liu Hongliang, head of the department of market regulation at the State Administration for Industry and Commerce.

The law is expected to tackle malpractices such as unfair competition, lack of intellectual property rights protection and tax evasion, Liu said. He did not disclose a timetable for the legislatiion.