The official emphasized the need to tackle abusive practices and to accelerate the development of a legal framework that reinforces platform economic governance.
Chinese Vice Premier and Politburo member Zhang Guoqing has issued a stern warning against the misuse of market dominance by online-platform companies.
During a tour of Guangdong Province from June 15 to 17, Zhang emphasized the need to tackle abusive practices such as unreasonable fees, excessive extraction of commissions and the unfair distribution of traffic by platforms.
His remarks form part of a broader government initiative aimed at ensuring that the digital economy remains healthy, competitive and fair, while recognizing the crucial role it plays in reducing costs, smoothing economic activity and stabilizing employment.
“Platform enterprises must shoulder their responsibilities by setting reasonable commission rates, ensuring transparent pricing and bidding rules, and optimizing order-allocation algorithms,” Zhang said during a visit to Internet freight platform enterprises.
The platforms were also urged to strengthen their screening operations and safety management, safeguarding the rights and interests of both freight drivers and consumers.
Zhang further called on regulators to accelerate the development of a legal framework that reinforces platform economic governance — covering platform rules, algorithms, fee collection and emerging areas such as live-streamed online sales.
He also pledged to strengthen regulatory enforcement against self-destructive competition characterized by excessive price cuts and declining service quality.
Since last year, China's central leadership has repeatedly warned against "involution-style" competition, including mentions in Politburo meetings and this year's Government Work Report.
In Guangdong, Zhang also visited companies in the steel and chemical sectors, along with a scientific institution specializing in nanotechnology, to survey industrial innovation — another key focus of his trip.
He emphasized the need to establish a virtuous cycle wherein technological breakthroughs drive industrial upgrading, while market demand fuels further tech innovations.
Source: MLex
