BEIJING, June 21 -- A guideline to further boost the blossoming of sharing economy was approved at a State Council executive meeting chaired by Premier Li Keqiang on Wednesday.
According to the guideline, the sector will enjoy easier access, greater policy transparency, and better protection of legitimate rights of platform companies, resources providers and consumers. The guideline is aimed to create an enabling environment for sustained innovation.
"We should give credit to the sharing economy as a reinvigorating force in China's economic growth," Li said.
"The country's sharing economy enabled by the Internet Plus has been instrumental in absorbing excess capacity and creating new jobs through its various new business models," he said.
China's sharing economy is likely to sustain a 40 percent annual growth momentum in the coming years, according to a report released in February.
According to the report, the market turnover of the country's sharing economy in 2016 reached 3.45 trillion yuan (about 505 billion U.S. dollars), up by 103 percent on a year-on-year basis.
In 2016, sharing economy served around 600 million people in China. There were 5.85 million people who were on the payroll of sharing economy platforms, 850,000 more than 2017.
"The regulation of sharing economy should be tolerant while prudent, as there is still much yet to be learnt about new business models. We should avoid simply applying traditional methodology on sharing economy," Li said.
Going forward, the authorities are tasked to improve public services in terms of data sharing, government service procurement, urban planning and resources management innovation, the guideline said.
Financial institutions are encouraged to provide innovative financial services and products tailored to the demand of companies in the sector.
Companies with cutting edges are encouraged to go global, establish their presences and build brand names.
In the meanwhile, malpractices including illegal disclosure or abuse of personal information of consumers and illegal competition means will face the full weight of law.
"China is a country vast in size with diversified demands, still industrializing and urbanizing. There are a lot of resources and capacities that could be better used," Li said.
"Governments at different levels should take the initiative with the big picture in mind, striking a balance between 'enabling' regulation and risk preparedness, in an effort to build a level playing field for all to compete and excel," he added.
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