China issues guidelines on the sharing economy

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China just issued guidelines on the sharing economy.

According to the National Development and Reform Commission (NDRC) and other seven government departments on Monday, the government will encourage innovation in sharing economy while regulating the sector in a tolerant and prudent manner.

More sophisticated regulations will govern different sectors of sharing economy, in order to reduce barriers to market entry and to guard against potential economic risk.

China issued guidelines on the sharing economy. /NDRC Website

There will be well-defined rights and responsibilities for stakeholders and third-party platforms, which are conducive to address consumer complaints better, said the NDRC.

The government expects and encourages orderly competition in the market. In order to expand international influence of Chinese brands overseas, firms with good market competitiveness will receive more support from the government.

Meanwhile, the guideline pointed out that China will open more data to the public as well as the market, to improve the efficiency of government agencies. Specific employment and taxation policies will be developed to assure the sharing economy's growth.

China’s sharing economy is expected to grow at an average annual rate of 40 percent. /VCG Photo

The trading volume of China's sharing economy rose to 3.45 trillion yuan (about 508 billion US dollars) last year, according to a report released by the State Information Center.

Under the guideline, China’s sharing economy is expected to grow at an average annual rate of 40% and to account for more than 10% of the country's GDP by 2020.