More prudent regulations to come for China’s sharing economy, says Premier Li Keqiang
- The country’s 3 trillion yuan sharing economy has been hit hard by troubles in the ride-hailing and bike-sharing markets
Chinese Premier Li Keqiang says more prudent regulations will need to be adopted to help grow the country’s sharing economy, which has sparked public concern after years of being a magnet for major venture capital investments.
“Like any new business, [the sharing economy] has its ups and downs,” said Li in a press conference on Friday to mark the conclusion of the annual gathering of China’s parliament. “But in general, it creates jobs, brings convenience to people and drives the development of relevant industries.”
He said the government’s focus will be on increased public security and safety, while assuring there will be no arbitrary rules that could potentially impede progress in the sector.
The premier’s comments come amid rising concerns over how China’s 3 trillion yuan (US$446 billion) sharing economy could manage sustainable growth amid recent high-profile controversies.
The sector has been hit hard by a safety crisis at Didi Chuxing, operator of China’s largest ride-hailing services platform, as well as the collapse of bike-sharing firm Ofo and lay-offs at rival Mobike.
Beijing-based Didi started a major overhaul of its operations in January to enhance safety and efficiency, as the company sought to regain public confidence rocked by two passenger deaths last year.
