China’s small independent developers see local innovation being stifled by Beijing’s new app registration rule

The Ministry of Industry and Information Technology requires all mobile app providers to submit their business details to the government or face punishment
It indicated that the new filing process aims to clamp down on rampant scams online

Apps

Ben Jiangin Beijing

Published: 7:03pm, 18 Aug 2023

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The latest ruling from Beijing that requires all mobile app providers to submit their business details to the government has raised concerns at some independent Chinese software developers, who expect this move to stifle local innovation and hinder access to advances created overseas.

The Ministry of Industry and Information Technology (MIIT) last Tuesday said in a notice that failure to register during the period from September to March next year will be punished, without elaborating.

“For developers who already have apps released, this is a hurdle that would increase their expenses,” Li An, who runs a five-person app development studio on the mainland, said in an interview on Thursday. “But for small firms still toying with innovative ideas, the filing process would be a great deterrent [in terms of time and cost].”

The MIIT, which indicated that the new regulation aims to clamp down on rampant scams online, said operators of all apps – including mini-programs distributed via so-called super apps like Tencent Holdings’ WeChat and Ant Group’s Alipay – must file a range of information that comprise details about the app and its provider.

The facade of the Ministry of Industry and Information Technology’s headquarters in Beijing. Photo: Handout

The filing process, which could take up to 20 days, would prevent local providers from doing quick launch and rapid iteration, app developer Li said. “This is an important advantage for our software industry,” he added.

It is a common practice for developers, according to Li, to initially test the market by doing a soft launch of their app idea and then turn around with a full-fledged iteration of the software based on user feedback.

The MIIT’s latest initiative highlights how the Chinese government continues to keep all online content on a short leash via rigid measures.

The Cyberspace Administration of China, for example, vowed to clamp down on disorder in every part of the internet, from app search and rankings to downloads and usage, according to new guidelines that it published last December.

China stops reporting data metrics of vast domestic apps market

Last July, the MIIT temporarily halted reporting data metrics of domestic apps without explanation, which made it difficult for outside analysts to assess the health of this industry in the world’s largest internet and smartphone market.

In the early 2000s, Beijing introduced an internet content provider registration scheme that required all China-based website operators to file and obtain a licence from the regulatory authority.

“Previously, it took from one to two weeks to crank out an app, followed by one or two more days to distribute it through various app stores [in mainland China],” the developer Li said. “With the new filing procedure, the cost of releasing an app will increase since the information must be submitted by an incorporated entity. For individual developers, registering a company is a lengthy procedure by itself.”

Unlike small developers, large app operators are not expected to experience any trouble complying with the MIIT’s new filing process.

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WeChat, which hosts more than 4 million mini-programs as of 2022, said last Wednesday that it will follow the MIIT’s new rule.

There has been a public outcry by other independent developers on social media site X.com. Two developers have lodged a complaint to the State Council that MIIT’s latest regulation might impede the development and growth of the private sector, according to a post published last Wednesday.

The new rule might even force some overseas developers to abandon the Chinese market, according to Li.

The total number of apps in China – an indicator of the health of the country’s digital economy – has already declined in the past few years. Following Beijing’s regulatory crackdown on the major internet firms, there were 2.6 million apps operating in China last year, which was down 25 per cent from the 3.5 million total in 2020.