Support or regulate? Beijing seeks delicate balance towards its platform economy
People’s Daily commentary and pledge from Premier Li Qiang offer support for platform economy, coincides with algorithm regulation
Chinese authorities have voiced support for the platform economy, while also tightening regulation on tech operators, with analysts saying Beijing is seeking to strike a delicate balance between exerting the economic significance of the sector and curbing online disorder.
The People’s Daily, the Communist Party’s mouthpiece, in a commentary on Monday urged more effort to turn online traffic into economic growth.
It came two days after Premier Li Qiang pledged more support for platform companies, acknowledging their role in empowering the real economy and developing new productivity at a State Council meeting.
But on Sunday, the nation’s cyberspace watchdog unveiled a three-month campaign targeting system providers for recommendation algorithm issues that have disrupted the industry.
And the seemingly contradictory messages underscored Beijing’s fear for over interpretation of the campaign, as meeting its economic growth target of “around 5 per cent” is its top priority, analysts said.
“They’re afraid that the emphasis on strict regulation will go to extremes … but they can’t just ignore the problems, on the other hand,” said Shi Lei, a professor of economics at Fudan University.
