China's Ministry of Transport released a draft ordinance on Monday to encourage and regulate the development of the bike-sharing industry. The ordinance also aims to gather feedback from the public over the next two weeks in a bid to provide input for future bike-sharing laws. 

The draft ordinance outlines that local governments have a legal responsibility of regulating the bike-sharing industry and coordinating the sector's development. 

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Local governments also have to prioritize developing public transport in accordance with each city's traffic conditions. In a bid to ensure public order, the draft rules state that governments must designate parking zones near areas such as transportation hubs, commercial centers, main business districts and residential areas. Companies will also be required to mark out parking lots, no-park zones and designated bike-sharing areas in applications to local governments. 

The draft ordinance requires bike-sharing companies to have a general policy of online and offline services. Firms also have to buy personal accident insurance and third party liability insurance for users, ensure customers register using their real names, and prohibit children under the age of 12 from using shared bikes. 

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The ordinance proposes that bike-sharing firms will no longer be able to take a deposit from customers. This is to ensure funds are not misappropriated by companies. Governments could also be required to include users' bike-sharing credit on record to ensure transparency.

The draft ordinance not only aims to increase the protection of consumer rights, but also prevent companies from passing on their business risks onto consumers.