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Support welcomed for platform economy

By FAN FEIFEI and LIU WEIFENG | China Daily | Updated: 2022-06-14 07:16
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A delivery worker of Meituan picks up food from a restaurant in Beijing on May 2. [Photo/Agencies]

Healthy future

Experts said the top leadership's attitude toward regulated and healthy development of the platform economy has been consistent, guaranteeing its growth is on the right track and that it has a healthy and sustainable future.

Shi said, "The problem is that our theoretical research in past years has failed to keep up with the fast development of the platform economy."

Rectification and completion of the platform economy is in line with the nation's high-quality development concept-with more efficient, equitable, sustainable and secure features-a key principle of Xi Jinping Thought on Socialist Economy with Chinese Characteristics for a New Era.

On April 29, a key meeting of the CPC Central Committee's Political Bureau sent a strong signal for the need to boost healthy development of the platform economy, Shi said.

According to Vice-Premier Liu He, China will support sustained and healthy development of the platform economy and the private sector. It will also formulate measures to boost the orderly and sound development of the platform economy, and encourage platform-based enterprises to take part in major national sci-tech innovation projects.

Liu made the remarks on May 17 at a symposium organized by the National Committee of the Chinese People's Political Consultative Conference in Beijing. The CPPCC is China's top political advisory body.

The government will increase direct investment in the digital economy and support the listing of technology companies on domestic and overseas financial markets, Liu said.

Zhou Hongyi, founder of cybersecurity company 360 Security Group and a member of the 13th CPPCC National Committee, attended the May 17 meeting. He said the authorities' support for development of the platform economy and the private economy gave him confidence and hope. "The latest statements are full of positive energy. At this time, confidence and hope are more precious than gold," Zhou added.

According to the high-level meeting on April 29, rectification of the platform economy will be completed, regular supervision will be launched and specific measures introduced to support its standardized and sound growth.

Pan Helin, co-director of the Digital Economy and Financial Innovation Research Center at Zhejiang University's International Business School, said, "After two years of special rectification of the platform economy in terms of information protection, antimonopoly work and a crack down on unfair competition, illegal and unfair practices hindering development of industries and harming personal privacy have been removed.

"The latest moves indicate that rectification of the nation's platform economy is nearly complete, while more concrete measures will be taken to achieve regular supervision of platform-based enterprises."

Pan said the platform economy is playing an increasingly important role in driving China's economic development amid the COVID-19 pandemic and a complex external environment. He said more efforts are needed to give full play to the advantages of the platform economy, which is vitally significant in improving livelihoods and increasing employment.

The authorities should bolster development of the platform economy to improve resource allocation efficiency, as well as create new business models, new economic growth points and more jobs, while better regulating the sector, Pan said.

According to a meeting of the State Council's Financial Stability and Development Committee on March 16, governance of the platform economy should abide by the principles of market orientation, the rule of law, and internationalization in a stable manner.

It was decided at the meeting that rectification work should be completed on large platform companies as soon as possible through regulated and transparent supervision.

The meeting also called for "red lights" and "green lights" to be introduced for the platform economy in China to boost its stable and healthy development and raise its international competitiveness.

At an executive meeting late last month, the State Council, China's Cabinet, announced 33 additional measures to stabilize growth, including promoting healthy development of the platform economy.

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