China's internet industry has thrived in the past two decades but governance is essential over the powerful sector to maintain market order and ensure information security, experts said at the China Internet Conference that kicked off Tuesday in Beijing.

China's internet business has made remarkable achievements, including trillions of yuan in revenue and a group of world-class giants, including Alibaba and Tencent, Huang Qifan, former mayor of the southwestern municipality Chongqing and vice chairman of a government think tank, said at the conference.

However, there are four major problems in the internet-based consumption, including burning cash to seek expansion, designing products for users' addiction, over-collecting private information through monopoly position and big data-enabled price discrimination, he pointed out.

Profit models based on these four defects cannot last long when the country's legal system and governance get improved, Huang said.

Compared with regulations in Europe, China has been prudent and tolerant to the development of internet business, giving them opportunities to make attempts, Wu Hequan, academician of the Chinese Academy of Engineering, said at the conference, noting the governance over the field is set for better development.

Now, when the internet has penetrated into all aspects of our economy and society, many improvements should be done in terms of enterprises' self-discipline, respect to consumers, and data protection, Wu said.

China's Data Security Law, which was introduced last June, is open to public opinions in its draft version and is set to be implemented in September.

It requires information infrastructure and data operators that process critical data to conduct risk assessments and the procurement of network products and services that pose risks to national security to be subjected to cybersecurity review.