The platform economy seen as a reliable engine of growth

The photo shows the headquarters of the People’s Bank of China in Beijing. [Photo/Xinhua]

According to industry experts, China’s increased focus on supporting healthy growth of the platform economy will further boost the innovation and vitality of platform-based enterprises, better stabilize investor confidence and will promote high-quality development.

Regulations covering the platform economy should be applied in a standard, transparent and predictable manner and follow the rule of law principle and market orientation, they said.

Their comments came after a meeting of the Political Bureau of the Communist Party of China Central Committee on April 29 called for efforts to promote the regulated and healthy development of the platform economy.

Turnarounds of the platform economy will be completed, regular supervision will be initiated, and specific measures to support its standardized and healthy growth will be rolled out, the meeting agreed.

The China Banking and Insurance Regulatory Commission stressed that it will complete the rectification of major platforms, set up both “red lights” and “green lights”, and implement regular monitoring to stimulate the healthy growth of the platform economy.

The People’s Bank of China, the country’s central bank, also said in a statement on Wednesday that it would improve its capital governance capacity and carry out regular supervision of the financial activities of companies on the platform.

“The latest measures indicate that the most recent rectifications of the country’s platform economy are nearly complete, while more concrete actions will be taken to ensure regular supervision of platform-based businesses in the future,” said Pan Helin, co-director of the Digital Economy and Financial Innovation Research Center at the International Business School of Zhejiang University.

Noting that the platform economy is playing an increasingly crucial role in China’s economic development amid the COVID-19 pandemic and complex external environment, Pan said more efforts are needed. necessary to take full advantage of the benefits of the platform economy, which is of vital importance in improving people’s livelihoods and developing employment.

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

The platform economy refers to the trend of commerce moving towards and increasingly favoring business models based on digital platforms. These platforms allow consumers, entrepreneurs, businesses, and the general public to connect, share resources, and sell products or services.

The platform economy remains an important driving force for promoting high-quality economic development, said Long Haibo, senior researcher at the State Council Development Research Center, adding that related supervision will become more predictable in the future.

Long said the latest statements mean China will strike a balance between incentivizing and regulating the platform economy, sending positive signals to the market in a bid to stabilize investor expectations and confidence.

He added that the country’s efforts to facilitate the sustainable and healthy development of the platform economy are conducive to further boost innovation of platform-based enterprises amid the pandemic and enhance their competitiveness in the global arena. .

At a meeting held by the Financial Stability and Development Committee under the aegis of the State Council, the National Cabinet, on March 16, it was decided that the governance of the platform economy should respect the principles of market orientation, the rule of law and internationalization.

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