Chinese regulatory authorities have proposed new insurance policies to additional regulate the nation’s Internet giants and platform financial system.
Nine ministries and commissions together with the National Development and Reform Commission, the State Administration of Supervision, the Cyberspace Administration of China, and the Ministry of Industry and Information Technology collectively issued a doc on Wednesday.
“Several Opinions on Promoting the Standardized, Healthy and Sustainable Development of the Platform Economy” offers steerage on points reminiscent of anti-monopoly and anti-competition regulation enforcement, knowledge and algorithm safety, platform interconnection, and the gig financial system.
The doc takes a optimistic tone in supporting platform firms together with Alibaba, Tencent, and Baidu, who’ve obtained harsh punishments and fines throughout the previous yr on anti-competition and anti-monopoly grounds.
The new proposal clearly states Beijing’s help for platform expertise innovation, whereas encouraging enterprise mannequin innovation and enhancing globalization.
It additionally proposes to help main platform firms to steer the formation of innovation consortia to advertise Beijing’s new focus of innovation, together with underlying structure of the economic Internet, industrial software program expertise, synthetic intelligence, public algorithms, and blockchain expertise.
It helps platform firms to advertise digital services and products to “go global”, to actively take part within the formulation of related worldwide guidelines reminiscent of cross-border knowledge circulate and digital financial system taxation, and take part in worldwide coordination of anti-monopoly and anti-unfair competitors.
It particularly mentions that platform firms ought to be inspired to develop cross-border e-commerce, actively promote the development of abroad warehouses, enhance the extent of digitalization, intelligence and facilitation, and promote small and medium-sized enterprises to depend on cross-border e-commerce platforms to broaden the worldwide market.
Below is the translated doc in full.
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Relevant departments of all provinces, autonomous areas, municipalities immediately underneath the Central Government and Xinjiang Production and Construction Corps:
The platform financial system is a brand new financial type with the Internet platform as the primary provider, knowledge as the important thing manufacturing issue, new era data expertise because the core driving drive, and community data infrastructure because the necessary help.
In current years, our nation’s platform financial system has developed quickly, and its standing and position within the general financial and social improvement has change into more and more outstanding. It is critical to stick to the steerage of Xi Jinping Thought on Socialism with Chinese Characteristics for a New Era, totally implement the spirit of the nineteenth National Congress of the Communist Party of China and all earlier plenary periods of the nineteenth Party Congress, totally implement the choices and deployments of the Party Central Committee and the State Council, base itself on the brand new improvement stage, implement new improvement ideas, and construct new improvement sample, promote high-quality improvement, proceed from the strategic peak of constructing new nationwide aggressive benefits, adhere to the equal emphasis on improvement and regulation, adhere to the “two unswerving”, observe the legal guidelines of the market, concentrate on the long-term, keep in mind the present, make up for shortcomings and strengthen weaknesses, adapt to the legal guidelines of platform financial improvement, set up and enhance guidelines and laws, and optimize the surroundings for platform financial improvement.
In order to additional promote the wholesome and sustainable improvement of the platform financial system, the next opinions are hereby supplied.
1. Improve the principles and laws
(1) Improve governance guidelines.
Revise the Anti-Monopoly Law and enhance the supporting guidelines of the Data Security Law and the Personal Information Protection Law. Formulate and promulgate laws prohibiting unfair competitors on the Internet. Refine the platform enterprise knowledge processing guidelines. Formulate and challenge worth habits guidelines within the platform financial system discipline to advertise the orderly and wholesome improvement of the trade. Improve the regulatory guidelines system within the monetary sector, insist that each one monetary actions are included in monetary supervision, and monetary companies have to be licensed to function.
(2) Improve the system and norms.
Clarify the boundaries of platform accountability and strengthen the accountability of super-large Internet platforms. Establish a platform compliance administration system, and type an efficient exterior supervision and analysis system for platform compliance. Increase the event of nationwide requirements associated to the platform financial system. Establish an Internet platform data disclosure system, improve the transparency of platform operations, and strengthen credit score constraints and social supervision. Establish and enhance the platform financial system truthful competitors supervision system. Improve the “graded classification + negative list” supervision system for cross-border knowledge circulate, and discover the formulation of an algorithm safety system for Internet data providers.
(3) Promote collaborative governance.
Strengthen the coordination of departments, adhere to the precept of “integrated supervision of online and offline”, and the competent departments of assorted industries with supervision capabilities are answerable for offline supervision and on the similar time assume the tasks of corresponding on-line supervision, in order to comprehend the unification of powers and tasks of approval, supervisor and supervision. Promote the mutual recognition of random inspection and appraisal outcomes amongst varied regulatory departments, keep away from repeated random inspections and testing, and discover the institution of a case session, joint regulation enforcement, and joint punishment mechanism to realize pre-event, in-process, and post-event full-chain supervision. Promote trade self-discipline, urge platform firms to function in compliance with legal guidelines and laws, and encourage trade associations to take the lead in formulating group requirements and trade self-discipline conventions. Strengthen social supervision, discover a supervision mechanism involving the general public and third-party skilled establishments, and promote the openness and transparency of platform firms’ compliance operations.
2. Improve the power and degree of supervision
(4) Improve competitors supervision and regulation enforcement.
For key industries and fields which can be strongly mirrored by the individuals, strengthen the whole-chain competitors supervision and regulation enforcement. Investigate and punish acts reminiscent of monopoly and unfair competitors within the platform financial system in accordance with the regulation. Strictly examine and cope with monopoly agreements within the platform financial system, abuse of market dominance and unlawful implementation of focus of operators. Strengthen platform advertising-oriented supervision, and strengthen supervision of promoting in key areas. Focus on regulating points reminiscent of deceptive shoppers by lowering and degrading merchandise, platforms failing to evaluate the market entry {qualifications} of offered merchandise, and many others., and implementing on-line operators’ product recall obligations for faulty client merchandise. Increase the crackdown on the unlawful operation of platform firms within the journey discipline. Strengthen tax help obligations reminiscent of reporting tax-related data of platform firms, strengthen tax supervision of platform firms, and examine and punish tax-related violations reminiscent of false invoicing and tax evasion in accordance with the regulation. Strengthen the administration and supervision of platform deposit, prepayment, safety deposit and different bills.
(5) Strengthen the supervision of the monetary sector.
Strengthen the supervision of the cost discipline, disconnect the improper connection between cost devices and different monetary merchandise, govern the unique or “choose one” habits within the cost course of in accordance with the regulation, strengthen the supervision of the abuse of the market dominance of non-bank cost providers, and research and introduce non-bank cost providers. Bank Payment Institution Regulations. Standardize using platform knowledge, strictly supervise the credit score reporting enterprise, and guarantee authorized and compliant operations. Implement the monetary holding firm supervision system, strictly study the {qualifications} of shareholders, strengthen penetrating supervision, and strengthen complete danger administration and associated occasion transaction administration. Strictly regulate platform firms’ funding in monetary establishments and native monetary organizations, and urge platform firms and their holding and shareholding monetary establishments to strictly implement capital and leverage ratio necessities. Improve the monetary client safety mechanism, strengthen the supervision of selling habits, make sure that the knowledge disclosed is true and correct, and shall not induce extreme consumption.
(6) Explore knowledge and algorithm safety supervision.
Conscientiously implement the ideas of legality, legitimacy, and necessity for the gathering and use of private data, and severely crack down on unlawful acts reminiscent of platform firms gathering private data past the scope and calling private data past their authority. Strictly management the habits of pointless knowledge assortment, and crack down on knowledge abuse reminiscent of black market knowledge transactions and massive knowledge killing in accordance with legal guidelines and laws. Under the premise of strictly defending industrial secrets and techniques reminiscent of algorithms, help third-party establishments to hold out algorithm analysis, information platform firms to enhance the transparency and interpretability of algorithms, and promote algorithm equity. Seriously examine and cope with unlawful and unlawful actions reminiscent of using algorithms to falsify data content material, disseminate detrimental dangerous data and vulgar and inferior content material, visitors hijacking, and faux account registration. Promote platform enterprises to deeply implement the community safety degree safety system, discover and perform knowledge safety danger scenario monitoring and reporting, and set up an emergency response mechanism. State organs shall acquire and use private data in accordance with the regulation in regulation enforcement actions to guard knowledge safety.
(7) Improve and enhance supervision methods and means.
Strengthen digital supervision help, set up non-contact supervision mechanisms reminiscent of on-line discovery, circulation, investigation and dealing with of unlawful clues, enhance supervision capabilities reminiscent of monitoring and early warning, on-line regulation enforcement, and knowledge publicity, and help areas with mature situations to hold out digital supervision pilot innovation. Strengthen and enhance credit score supervision, and strengthen the administration of the checklist of the untrustworthy with critical violations of the regulation within the platform financial system. Give play to the position of trade associations, information Internet firms to strengthen the alternate, interconnection, and mutual recognition of credit score evaluations associated to lists of great violations of regulation and untrustworthiness, and promote platform firms to implement joint prevention and management of unlawful acts by community operators.
3. Optimizing the event surroundings
(8) Reduce the working prices of platform financial contributors.
Continue to advertise the facilitation and standardization of the registration of market entities associated to the platform financial system, and help the provincial individuals’s authorities in coordinating the pilot venture of separate registration of residence and enterprise premises in accordance with related necessities. Further clear up and standardize guidelines and laws reminiscent of platform financial entry that don’t have any foundation in regulation and broaden powers with out authorization. Improve {the catalogue} of prohibited licenses for Internet market entry. Guide platform firms to fairly decide service charges reminiscent of cost and settlement, platform commissions, and supply high-quality small and micro retailers with sure visitors help. Platform service costs ought to be constant in high quality and worth, truthful and affordable, and ought to be negotiated and totally communicated with operators on the platform, and the order of truthful competitors shouldn’t be compromised.
(9) Establish an orderly and open platform ecology.
Promote cooperation between platform enterprises, construct a appropriate and open ecosystem, stimulate the vitality of platform enterprises, and domesticate new momentum for the event of platform financial system. Advocating truthful competitors, inclusive improvement, and open innovation, platforms ought to promote ecological opening up in an orderly method in accordance with legal guidelines and laws, present providers pretty and externally in accordance with unified guidelines, and should not be maliciously incompatible, or set unreasonable procedural necessities. Platform operators shall not make the most of knowledge, visitors, expertise, market, and capital to limit the unbiased operation of different platforms and functions. Promote the formulation of system migration and interconnection requirements between cloud platforms, and speed up enterprise and knowledge interconnection.
(10) Strengthen the safety of the rights and pursuits of staff in new types of employment.
Implement insurance policies and measures associated to the safety of the rights and pursuits of staff in new employment varieties reminiscent of on-line supply workers and on-line automotive drivers. Improve the identification requirements for labor relations between staff in new types of employment and platform firms and labor cooperative enterprises, discover and make clear the identification requirements for conditions that don’t totally meet the institution of labor relations, and fairly decide the rights and obligations of enterprises and staff. Guide platform firms to strengthen negotiations with staff in new employment varieties, and rationally formulate techniques and algorithm guidelines that immediately contain staff’ rights and pursuits, reminiscent of order allocation, piece-rate unit worth, and fee ratio, and publish them publicly to make sure that the system and guidelines are open and clear. Improve the minimal wage and cost assure system to make sure that staff in new employment varieties obtain affordable labor remuneration. Carry out a pilot program of occupational harm safety for individuals with versatile employment on the platform, and discover mechanisms reminiscent of the acquisition of business insurance coverage by employers. Implement a nationwide insurance coverage plan to advertise the participation of staff in new types of employment in social insurance coverage. Strengthen security consciousness and authorized consciousness coaching for staff in new employment varieties.
4, improve the power of innovation and improvement
(11) Support platforms to strengthen technological innovation.
Guide platform enterprises to additional leverage the platform’s market and knowledge benefits, actively perform technological innovation, and improve core competitiveness. Encourage platform enterprises to repeatedly improve the depth of R&D funding, and speed up technological analysis and improvement breakthroughs within the fields of synthetic intelligence, cloud computing, blockchain, working techniques, and processors. Encourage platform enterprises to speed up the innovation, analysis and improvement and software of digital inexperienced integration expertise, and assist construct a zero-carbon industrial chain and provide chain. Create a good coverage surroundings for technological innovation, and additional enhance the mental property safety system that adapts to the innovation and improvement of platform enterprises. Support highly effective main enterprises or platform enterprises to steer the formation of innovation consortia, and promote key software program expertise analysis across the underlying structure of the economic Internet, industrial software program root expertise, synthetic intelligence open innovation, public algorithm units, and blockchain underlying expertise.
(12) Improve the extent of globalization improvement.
Support platform firms to advertise digital services and products to “go global”, improve their worldwide improvement capabilities, and improve their worldwide competitiveness. Actively take part within the formulation of related worldwide guidelines reminiscent of cross-border knowledge circulate and digital financial system taxation, take part in worldwide coordination of anti-monopoly and anti-unfair competitors, give full play to the position of pilot free commerce zones and free commerce ports, and promote the development of mutually helpful and win-win worldwide financial and commerce cooperation Rules to create a superb surroundings for the worldwide improvement of platform enterprises. Cultivate skilled middleman providers reminiscent of mental property rights, industrial coordination, and authorized counsel, pilot and discover handy judicial coordination, funding safety and aid mechanisms, strengthen abroad mental property danger early warning, rights safety help, dispute mediation and different working mechanisms, and defend my nation’s platform enterprises and operations the reliable rights and pursuits of the particular person overseas. Encourage platform enterprises to develop cross-border e-commerce, actively promote the development of abroad warehouses, enhance the extent of digitization, intelligence and facilitation, and promote small and medium-sized enterprises to depend on cross-border e-commerce platforms to broaden the worldwide market. Actively promote the development of abroad financial and commerce cooperation zones, and domesticate cross-border e-commerce trade chains and ecosystems reminiscent of warehousing, logistics, cost, customs clearance, and overseas alternate settlement.
(13) Encourage platform enterprises to hold out mannequin innovation.
Encourage platform enterprises to make full use of their benefits in expertise, expertise, capital, channels, knowledge, and many others. underneath the premise of compliance with legal guidelines and laws, play a key position in innovation and management, and promote the event of “Internet +” in a wider, deeper and extra environment friendly route . Encourage the mixing and innovation of components primarily based on the platform, strengthen the gathering, evaluation and mining, and complete utilization of trade knowledge, and promote the marketization of knowledge components in key industries on a pilot foundation. The pilot explores a brand new useful resource sharing mannequin of “separation of ownership and use rights”, revitalizes idle sources in cloud platforms, improvement instruments, workshops, and many others., and cultivates new types of sharing financial system. Platform enterprises are inspired to hold out crowdsourcing of progressive enterprise, and extra open and share sources to small and medium-sized enterprises.
5. Enabling financial transformation and improvement
(14) Enabling the transformation and upgrading of the manufacturing trade.
Support platform firms to depend on market and knowledge benefits to empower manufacturing and manufacturing hyperlinks, and develop new manufacturing fashions reminiscent of on-demand manufacturing, sales-based manufacturing, and personalised customization. Encourage platform enterprises to strengthen cooperation with main enterprises within the trade, enhance their built-in digital manufacturing and operation capabilities, promote the digital and clever upgrading of provide chains, and drive the general digital transformation of conventional industries. Explore and promote the cooperation between platform enterprises and industrial clusters, make up for the shortcomings of regional industrial transformation and improvement, and promote the advance of regional industrial competitiveness. Guide platform enterprises to actively take part within the industrial Internet innovation and improvement venture, perform key expertise analysis, public platform cultivation, and promote the development of a multi-level and systematic industrial Internet platform system. In-depth implementation of the inclusive “cloud data empowerment” motion to help small and medium-sized enterprises to regularly improve their knowledge to the cloud to administration and enterprise cloud. Implement a particular marketing campaign for digital empowerment of small and medium-sized enterprises, and encourage the promotion of fantastic practices in digital, inexperienced, and clever conventional industries.
(15) Promote the digital transformation of agriculture.
Encourage platform enterprises to innovate and develop good agriculture, promote the digitalization of planting, animal husbandry, fishery and different fields, enhance the digitalization degree of all hyperlinks within the industrial chain of agricultural manufacturing, processing, gross sales, logistics, and many others., and enhance the standard traceability system of agricultural merchandise. Help obtain high-quality and high-quality agricultural merchandise. Standardize the buying and selling habits of agricultural merchandise and agricultural supplies of platform enterprises, buy and promote agricultural merchandise, pesticides and veterinary medication residues shall not exceed the usual, don’t buy or promote substandard agricultural supplies, successfully guarantee the standard and security of merchandise, and help the acquisition and gross sales of natural licensed agricultural merchandise. Guide platform enterprises to deploy in rural areas, speed up the event of rural e-commerce, and promote “Internet +” agricultural merchandise from villages to cities. Further information the platform financial system to empower the event of “agriculture, rural areas and farmers”, speed up the development of a rural credit score data system, use digital means to innovate the best way finance helps agriculture and rural areas, and domesticate new momentum for complete rural revitalization.
(16) Improve the platform’s skill to create consumption.
Encourage platform enterprises to broaden “Internet +” consumption eventualities, present high-quality services and products, promote the popularization and software of good merchandise reminiscent of good residence, digital actuality, and ultra-high-definition video terminals, and develop new retail strategies reminiscent of good procuring guides, good replenishment, and virtualized expertise. , promote telemedicine, on-line workplace, data sharing and different functions. Guide platform enterprises to hold out on-line promotion actions reminiscent of model consumption and high quality consumption, and domesticate new development factors of consumption. Encourage platform enterprises to assist optimize public providers, and enhance the extent of inclusiveness, comfort, and personalization of providers reminiscent of medical care, social safety, and employment. Encourage platform firms to offer barrier-free providers, and improve the comfort for particular teams such because the aged and the disabled to take pleasure in clever services and products. Guide platform enterprises to hold out digital help and promote the advance of digital expertise and digital literacy.
6. Safeguards
(17) Strengthen general planning and coordination.
Fully counting on current mechanisms, strengthen departmental coordination, central-local linkage, and strengthen collaborative analysis and judgment on main points within the platform financial system. Strengthen the general coordination of regulatory actions and insurance policies, totally hearken to the opinions of all events, particularly the opinions of administrative counterparts, keep away from affecting and interrupting the conventional enterprise actions of platform enterprises, and stop unanticipated dangers brought on by the superposition of insurance policies. Strengthen the general planning of the central authorities, the provincial general accountability, and the native implementation of territorial administration tasks, and cling to the natural unity of accountability division, analysis and analysis, and accountability.
(18) Strengthen coverage ensures.
Encourage enterprise capital, fairness funding (funds), and many others. to extend funding within the discipline of technological innovation, and help technological innovation of enterprises. Encourage counting on varied schools and universities, vocational schools and analysis establishments to strengthen the cultivation of high-end abilities and sensible abilities within the digital financial system. Strengthen digital expertise training and coaching for all. All localities ought to actively promote the event of the platform financial system, enhance the coverage system for selling the event of the platform financial system, and research and clear up main issues within the improvement of the platform financial system in a well timed method.
(19) Carry out pilot exploration.
Relying on the National Digital Economy Innovation and Development Pilot Zone, Comprehensive Innovation and Reform Pilot Zone, National Intelligent Social Governance Experimental Base, National Network Market Supervision and Service Demonstration Zone, National E-commerce Demonstration Base, Free Trade Demonstration Zone, Free Trade Port, and many others., discover the institution of adaptive The supervision mannequin for the event of the platform financial system is to construct an institutional surroundings that’s appropriate with the innovation and improvement of the platform financial system.