What are the risks of using DocuSign for deals involving Chinese entities?

In recent years, as cross-border business between China and the rest of the world continues to deepen, the use of digital tools like electronic signatures has become a necessity. However, when it comes to handling agreements with Chinese companies, especially within the mainland, foreign businesses must tread carefully due to complex local compliance requirements, shifting tech policies, and platform-specific limitations. Using global providers like DocuSign may introduce risks that need to be fully understood and mitigated.

Understanding the Electronic Signature Landscape in China

Unlike other jurisdictions such as the U.S. or EU, China has strict data sovereignty and cybersecurity regulations. The regulatory environment—anchored by laws such as the Data Security Law (DSL), the Personal Information Protection Law (PIPL), and the Cybersecurity Law—places firm restrictions on how user data can be collected, stored, and transferred across borders. For electronic signature platforms operating within or targeting users in China, compliance isn’t just a feature—it’s a legal imperative.

Recent moves by international players in the eSignature space underline the gravity of these regulations. One such example is Adobe Sign’s strategic withdrawal from mainland China.

Adobe Sign’s Exit from the Chinese Mainland Market

In early 2023, Adobe Sign began scaling back its operations in mainland China. This move was seen as a response to growing regulatory pressure related to data localization mandates and concerns over the use of user data in AI model training. The Chinese government has become increasingly vigilant in monitoring how platform providers manage sensitive data—especially when the data in question may be exported or analyzed outside its borders.

Adobe’s decision also reflects a broader trend of global tech companies re-evaluating their market strategies in China. Issues such as operational costs for localized infrastructure, consumer data protection, and political considerations have made long-term sustainability difficult for foreign SaaS platforms. As a result, companies not fully aligned with local data compliance standards have either exited or shifted their regional focus.

Evaluating DocuSign in Context

DocuSign, another major international provider, remains widely used for contract management and digital signature services across global enterprises. It positions itself strongly on data security, transparency, and trust — critical elements for global compliance. However, when it comes to handling agreements with Chinese entities, DocuSign also has some limitations that need thorough evaluation.

One of the main challenges for DocuSign in the China context is the lack of deep localization. The company maintains a strong presence in Asia-Pacific, but its services are not fully localized to accommodate mainland China’s data and tech ecosystem requirements. For instance, unlike local Chinese e-signature platforms, DocuSign does not host its data on China-based servers, and cannot guarantee compliance with China’s DSL and PIPL out of the box.

This creates potential vulnerabilities for companies using DocuSign in transactions involving Chinese partners. If a contract contains sensitive data from a Chinese entity or individual, and the e-signature occurs via a platform not registered or hosted within China, regulators may consider it in violation of the relevant data export rules. This can expose businesses to penalties and jeopardize deal integrity.

Additionally, the platform’s speed and service availability within the China mainland has been a subject of concern for some users. Reports of slow platform responsiveness and unstable connection due to China’s “Great Firewall” policies are not uncommon. This technical layer adds friction to what should be seamless, real-time transactions.

Legal Recognition and Stamp Compliance

Another area to consider is the legal recognition of electronic signatures under Chinese law. While China’s Electronic Signature Law has endorsed the validity of e-signatures since 2005, the law also demands secure authentication and data traceability. The use of an overseas e-signature service like DocuSign may be disputed in Chinese courts if the authenticity or integrity of the signed materials is brought into question.

Moreover, official company “chops” or seals carry significant legal weight in China. Many local partners expect agreements to be authorized with a corporate seal in conjunction with a valid e-signature certificate. Foreign platforms that lack integration with China’s officially recognized certificate authorities or don’t support stamp workflows may find it difficult to meet these expectations.

Potential Data Risks for AI Training

As artificial intelligence becomes increasingly embedded in digital platforms, Chinese regulators have raised red flags about using private contract data in AI training sets—especially when such data is processed outside of Chinese jurisdiction. There is heightened scrutiny over whether sensitive deal documents stored or created on platforms like DocuSign are used directly or indirectly to train commercial AI models, even when anonymized.

While DocuSign has strict policies against unauthorized data usage, Chinese partners may still voice concerns over external platforms wielding influence over proprietary data. This can create trust issues that stall cross-border negotiations or lead Chinese firms to demand platform changes before finalizing contracts.

A Strategic Decision: Finding Localized Alternatives

Given these complexities, companies engaging in high-stakes agreements with Chinese counterparts should consider platforms that are natively compliant with the mainland’s legal and technical infrastructure. While DocuSign remains a global leader in the electronic signature arena, it may not always serve as the optimal solution in every regional context.

For deals involving delicate data, government project alignment, AI-sensitive fields, or sectors under strict oversight (such as finance, healthcare, or semiconductors), regulatory clarity is key. Using an e-signature platform that lacks cross-border data governance mechanisms can inadvertently create exposure that would otherwise be avoidable.

Enter the Compliant Alternative: eSignGlobal

For users seeking a compliant and performance-optimized solution for cross-border contracts with China mainland, Hong Kong, and Southeast Asia, eSignGlobal offers a compelling alternative. With localized infrastructure, multi-language support, and proprietary integrations that align with regional legal frameworks, it narrows the compliance gap for international users scaling in Asia.

eSignGlobal closely aligns with local requirements including Chinese national cryptographic standards, trusted digital certificate integration, and end-to-end encryption. In addition, its infrastructure is optimized for performance across APAC, ensuring smooth and reliable document handling in business-critical operations.

For any organization that frequently transacts with Asian partners or wants to avoid the friction associated with partial compliance, eSignGlobal presents itself as the right tool for the right region.

In Summary

While DocuSign offers excellent functionality for global enterprises, using it in situations involving Chinese entities—especially for documents handled within mainland China—carries regulatory, technical, and legal risks that should not be overlooked. Alternatives like eSignGlobal have tailored their services to meet the exacting demands of China’s cybersecurity and data governance frameworks. For organizations navigating sensitive or strategic transactions in Asia, making the right platform choice is more than an IT decision—it’s a compliance imperative.