In a report on the development of the digital economy he made to the country's top legislature on Friday, He Lifeng, minister of the National Development and Reform Commission, the country's major economic planner, pointed out that the commission will introduce a number of "green light" investment cases to explain to market and industry supervisors how to avoid hindering the sustainable development of the internet platform enterprises.
To resolve the problems of monopoly and boost healthy competition in the industry, the supervision departments have markedly strengthened their regulation of the sector.But some have taken it as a signal that the government seems to be determined to pick the low-hanging fruits of the booming industry to bail out the economy, if not to rob the rich to assist the poor.
▲ A staff member of the Bank of Communications Beijing Branch instructs a visitor to open a digital RMB wallet on a mobile phone, on June 16, 2021. Photo/Xinhua
A series of documents and policies have been released recently that prove the contrary, and He's report represents the central authorities' latest efforts to boost the healthy development of the platform companies by regulating the supervision of them.It aims to make the regulation of companies in the digital economy more preemptive, better targeted and more predictable according to the law, so as to promptly prevent the formation of monopolies and bubbles without hurting their growth potential and market confidence or stirring misunderstandings.It is not common for the central authorities to regulate market and industry supervision by issuing specific reference "cases". But these are expected to cover almost all the scenarios the frontline watchdogs might encounter so that their law enforcement actions can become more standardized and rational. In doing so, the reference cases will help guide the investment path of capital, as both companies and watchdogs will be on the same page.China's digital economy grew from 11 trillion yuan ($1.51 trillion) to 45.5 trillion yuan over the past decade, and it now ranks second in the world. With the regulation of the industry becoming more transparent, predictable and law-based, the digital economy will have more favorable conditions to play a bigger role as a robust engine for high-quality development.The government has demonstrated it is playing its part in promoting the healthy development of the digital economy, now companies in the sector must shoulder their responsibilities by strengthening self-discipline and cherishing the rich business opportunities created by the huge domestic market.
