Strengthening Governance and Promoting Healthy Development of Internet Platform Industry in China

Published : 26 Sep 2021 08:02 PM | Updated : 27 Sep 2021 03:02 PM

In the Business Report of World Bank, China ranked 31st in 2020, making it one of the top 10 economies with the largest improvement in business environment. A continuously improved business environment is not only an important cornerstone for China to take new advantages in international cooperation and competition, but also an indispensable environmental support for building a new development pattern of dual circulation at home and abroad. This will play a positive role in promoting the environment and the healthy development of digital economy.

A sound environment for the Internet platform economy: China encourages and creates a sound environment for the development of the Internet platform economy. As a new way of organizing productivity, Internet platform economy is a new driving force for economic development. It plays an important role in optimizing resource allocation, promoting cross-border and integrated development, innovation and entrepreneurship, promoting industrial upgrading, expanding the consumer market, and especially increasing employment. With the continuous improvement of digital business infrastructure including technology, logistics and supply chain in the whole society, the cost of entrepreneurship and innovation of Internet platform operators is constantly reduced, and business efficiency is also constantly improved.

Strengthen anti-monopoly supervision of Internet platform companies: How to strengthen the building of digital society and digital governance capacity and improve the effectiveness of public services and social governance is a major challenge to optimize the business environment. China has intensified its anti-monopoly supervision over Internet platform companies, and some of them have been investigated for their monopoly and unfair competition. The anti-monopoly issue of Internet platform companies has drawn great attention from all sectors of the society. China adheres to the principle of placing equal emphasis on development and regulation, grasping the law of Internet platform economic development, establishing and improving the Internet platform economic governance system, clarifying rules, drawing a clear bottom line, strengthening supervision and standardizing order, which is the basic spirit of Internet platform economic regulation.

Antitrust and fair competition policy: In recent years, China has paid more attention to anti-monopoly and fair competition policies. In the previous stage, China intensified anti-monopoly supervision, investigated and dealt with monopoly and unfair competition of relevant Internet platform companies in accordance with the law, and achieved initial results in preventing disorderly expansion of capital. The order of fair competition in the market has steadily improved. In the process of development, all industries will experience three stages including savage growth, standardized pains and orderly development. As a new form of business, Internet platform enterprises are also experiencing the pain stage of standardization. Capital that were speculating and aiming to make a quick buck while the industry was under regulatory age, will certainly be restrained to a considerable degree.

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Innovation driven by fair competition: From the perspective of industrial characteristics, the Internet platform economy has the leverage effect of cross network effect and cross-border influence, and its industrial maturity cycle is constantly shortening. If the disorderly development of the Internet platform economy is allowed without intervention, the situation of "the stronger the stronger, the weaker the weaker" will be more prominent. The Internet economy supported by digital technology needs not only innovation driven by fair competition, but also competition driven by innovation. Monopolistic behavior will gradually make Internet platform enterprises lack innovation motivation. An enterprise lacking innovation motivation will suffer setbacks in its development in the long run.

New stage of Internet platform economy development: China's Internet platform economy is in a critical period of development. It is expected that the Internet platform economy can better serve the industry, activate innovation, and enable more people to share the digital dividend. People expect that the Internet platform can bring more efficient allocation of resources, more fair opportunities for display, and more flexible working methods. All these mark a new stage of better and healthier development of the Internet platform economy.

Sustained and high-quality economy development in China: At present, the Chinese economic governance focuses on inner loop as the main body based on the binary, enhances the reform of traction, strengthens open support, increases innovation drive, promotes the entrepreneurial spirit. Enterprises become the real source of innovation to provide strong support for the new development pattern, as the economy continues to develop with high quality. Under the new development pattern, China's economic growth is no longer based on speed, and the development of Internet platforms is simultaneously entering a healthy new era.

The Chinese government's policy of anti-monopoly supervision and improvement of fair competition environment on Internet platform economy is completely correct and conforms to the operation principle of market economy based on the rule of law. This will be conducive to the sustainable and healthy development of China's Internet platform economy. Through the operation mode of "Internet plus", it will drive other industries to take an intelligent and innovative path, and achieve high-quality leapfrog and development. It also means that the Chinese government is creating a fairer and more effective market operation environment, which will certainly attract more market players from all over the world to participate in the feast of China's economic development.

The writer is Economic & Commercial Counsellor, Embassy of the People's Republic of China

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