context: Platform-based services, including consumer- and industry-facing applications, are growing rapidly as part of the digital economy. State Council called for improved legislation and enforcement at its 17 Jul 2019 executive meeting, and it now issues guiding opinions for platform economy development, emphasising a balance of innovation and regulation.
State Council General Office issued ‘Guiding opinions on promoting the platform economy’ on 8 Aug 2019, aiming to boost stable and healthy development. The Opinions stress
- innovative, inclusive and prudent supervision
- regulations to be consistent with new business models and conducive to fair competition
- platform responsibility defined in a 'scientific and rational manner'
- fair and competitive market order, focusing on
- online transactions
- market manipulation
- 'internet+regulations'
- new areas of growth
- new business models, such as
- 'internet+service industry'
- 'internet+production'
- ‘internet+entrepreneurship and innovation'
- latest information infrastructure such as 5G
- new business models, such as
- optimising market entry conditions
- optimising development environment, including enhancing data sharing between government agencies and platform companies
- protecting market players’ and consumers’ legal rights
Relevant government agencies will strengthen policy support within their portfolios, including
- National Development and Reform Commission (NDRC) on
- industry development
- digital silk road
- Ministry of Industry and IT (MIIT) on
- industrial internet
- internet infrastructure
- telecom industry regulations
- Ministry of Transportation (MoT) on
- new transportation services business models, including ride-hailing services
- Ministry of Commerce (MofCOM) on e-commerce
- State Administration for Market Regulation (SAMR) on market development
Platform companies such as Didi are largely optimistic about the regulations, reports Caixin, adding that experts say specific clauses, such as restricting market abuses, will require further clarification.