China to enhance supervision of platform economy

China will introduce new policies to strengthen the supervision of the platform economy to foster a healthier market and support platform firms to play a bigger role in competing globally, said the country's top market regulator at the sidelines of the ongoing two sessions on Wednesday.

Luo Wen, head of the State Administration for Market Regulation, said the country plans to step up the introduction of a regulatory rule for online trading platforms to establish a long-term mechanism and safeguard the rights of all parties within platforms.

The regulator will take steps to prevent platforms from engaging in price wars—where businesses are forced into unsustainable price-cutting to stay competitive, he said, adding that a compliance guideline for online trading fee will be launched.

"Such efforts aims to introduce clearer pricing rules and push platforms to optimize their fee structures, helping small and medium-sized businesses lower costs and improve efficiency," Luo said.

He emphasized that the moves are part of the country's strong efforts to support platform enterprises in their roles of driving growth, creating jobs, and competing internationally.

Currently, some gig workers, such as food delivery riders, and consumers have reported concerns over opaque algorithms, price discrimination driven by big data, and fake orders that manipulate rankings by platforms.

To address this, Luo said the regulator will work with relevant departments to enhance comprehensive governance, urging platforms to increase algorithm transparency, optimize algorithmic decision-making, and genuinely protect the rights of gig workers and consumers.

"We will push platforms to optimize algorithmic decision-making and ensure 'platforms for good' and fair treatment for all participants," he emphasized.

On Wednesday, Luo also disclosed that the administration will also step up launch of a rule to supervise the booming livestreaming sector to address concerns over false advertising, counterfeit goods, and exploitative marketing practices.