Food e-commerce or online food trading in China has dramatically changed the landscape of its food safety in particular in the wave of rising online food platforms, which create market failure. In response, China brings its own regulatory approach. This paper illustrates the legislative development of food e-commerce regulation in China and explores the challenges it faces. Part I will provide a brief history of the development of China's Internet industry and food e-commerce and then analyse the market failure it creates. Part II will detail legislative development in China to deal with the market failure resulting from food e-commerce. To achieve the goal, this part will make an in-depth legal analysis of relevant food e-commerce legislation and assess the functioning of the legislation. Part III will explore current challenges that food e-commerce regulation faces in China in light of China's continuing evolution of food e-commerce business models. Part IV will conclude.