Editor's note: Cheng Le is a professor and doctoral supervisor at Guanghua Law School and School of Cyber Science and Technology, Zhejiang University, and executive dean of Academy of International Strategy and Law, Zhejiang University. The article reflects the author's opinions and not necessarily the views of CGTN.

The platform economy has been instrumental in spurring technology innovation, revitalizing traditional industries, and bolstering China's global competitiveness. However, to ensure its healthy and sustainable growth, a balance between regulation and support is essential.

Li Qiang, a Member of the Standing Committee of the Political Bureau of the CPC Central Committee and Premier of the State Council, emphasized in a recent meeting that the platform economy has opened up new possibilities for expanding demand, emerged as a driving force for innovation and development, and provided diverse opportunities for employment, entrepreneurship, and public service delivery.

To effectively integrate the platform economy into overall economic development and assume a leadership role, it is essential to follow a comprehensive approach consisting of at least four key steps.

Firstly, continuous promotion of innovation and breakthroughs is crucial. This involves increasing investments in research and development, particularly in key core technologies such as underlying technologies, and exploring new fields and tracks to stay ahead in the competitive landscape.

Secondly, empowering the real economy is essential. Optimizing and developing consumer Internet platforms can stimulate domestic demand, while vigorously developing industrial Internet platforms can foster joint innovation among small and medium-sized enterprises, driving their growth.

Thirdly, actively fulfilling social responsibilities is vital for sustaining a healthy platform ecosystem. This entails strengthening industry self-discipline and compliance operations to maintain a positive platform environment. Additionally, efforts to create new employment opportunities based on the platform and active participation in social welfare undertakings are essential for societal well-being.

Lastly, boosting international competitiveness is imperative. This requires expanding efforts on the global stage, enabling more Chinese manufacturing and services to venture abroad, and establishing a strong presence in international markets.

In line with Li Qiang's emphasis on supporting the platform economy, governments at all levels should actively work towards creating a fair and competitive market environment. This can be achieved by enhancing policies related to investment access, security assessments for new technologies and businesses, and establishing a transparent and predictable regulatory system. Moreover, efforts should be made to reduce the operational compliance costs for businesses and foster a healthy industry development.

To ensure the sustainable growth of the platform economy, it is essential to establish a consistent communication mechanism with platform enterprises. By staying informed about the challenges and needs of these enterprises, relevant policies and measures can be improved to address their requirements effectively. Through these endeavors, the platform economy can be promoted to flourish in a healthy and sustainable manner.

The platform economy, being a novel form of economy, has exhibited certain shortcomings during its early stages of evolution. It is essential to recognize that without prior experience to draw from, platform enterprises may encounter challenges, stumble, or even inadvertently breach laws during their initial development. Nevertheless, these early deficiencies should not hinder the growth of the platform economy, provided they operate within a legal framework, leveraging their potential to contribute to the overall economic advancement.

In this context, the regulation and development of the platform economy play crucial roles, much like the wings of a plane or the wheels of a vehicle – both indispensable and interconnected. Striking a balance between regulation and development is imperative for the platform economy to progress in a robust and sustainable manner.

As an integral component of the digital economy, the platform economy holds significant importance in supporting and serving the real economy. Its extensive application scenarios and seamless connectivity, along with a robust governance mechanism, play a pivotal role in fostering entrepreneurship by enhancing cost-effectiveness and efficiency.

Moreover, the profound integration of the digital economy with the real economy relies heavily on the pivotal role played by platform enterprises. These enterprises are equipped with service ecosystems built on Internet and information technology, which streamline the flow of products, information, and personnel, facilitating global-scale transactions and information exchange for products and services. In this way, platform enterprises empower diverse stakeholders to participate more actively in the global value chain, fostering inclusive trade and service trade and driving innovation within the global industrial chain in the digital economy era.

From an international perspective, platform enterprises are catalysts for transformative changes in the global industrial chain and international division of labor. Their transformative capabilities have far-reaching impacts, stimulating fresh ways of conducting business, promoting a more inclusive approach to global trade, and fueling innovation in the digital economy era.

As a pivotal driver in expanding both domestic and international economic cycles, the platform economy strategically engages with the domestic market while simultaneously venturing into overseas markets to enhance global competitiveness. Platform enterprises achieve this by seamlessly integrating domestic and foreign service resources, collaborating with partners from different countries, and constructing comprehensive service ecosystems that facilitate international business expansion.

The integration of digital technology across the cross-border platform supply chain enables the introduction of a wide array of digitalized cross-border services. This shift towards digitization allows for greater efficiency and accessibility in conducting cross-border transactions. 

Recognizing the crucial role of platform enterprises, it becomes essential to incentivize their involvement in cross-border transactions, actively fostering overseas economic and trade cooperation. This can be achieved through nurturing the growth of industrial chains and ecological circles, as well as enhancing international trade facilitation.

However, amid the globalized economy, platform enterprises face unexpected challenges and regulatory issues that may vary across jurisdictions, particularly in the digital realm. Overcoming these hurdles requires a concerted effort to address and harmonize competing regulations, fostering a conducive environment for platform enterprises to thrive in the international arena.

As a transformative force shaping the global landscape, the platform economy has immense potential to usher in a new era centered around the digital economy. Acknowledging that global rules and orders concerning the digital economy are still evolving, responsible states should actively engage and take the lead in formulating international rules related to digital economy, encompassing aspects such as digital markets, digital services, and digital taxation. This active participation is essential for enhancing the participation and influence of relevant entities, notably platform enterprises, in shaping international regulations.

The platform economy acts as a catalyst for economic recovery and improving people's lives, bridging the gap between individuals and broader societal benefits. Therefore, it is crucial to reinforce policy support for the digital economy, including the platform economy, and promote the application of digital technology in various aspects of people's lifestyles and material well-being. As the digital economy expands, it becomes vital to strengthen risk prevention and control measures related to digital technology. This includes emphasizing the core value of technology serving industries at the market level and enhancing digital technology security at the elemental level. Regulatory systems for data collection, cross-border flows, and other critical elements of the digital economy should also be improved to facilitate global flow and marketization of innovative technologies and data.

Cooperation among all countries worldwide is imperative to stimulate economic recovery and create an environment conducive to the accelerated development of digital technology. By working together, the international community can leverage digital technology as a powerful catalyst for achieving a shared future and fostering a more interconnected and prosperous global community.