Policy digest
China will take measures to encourage the development of the platform economy as a new form of industry in order to nurture new economic drivers, according to a guideline published on Thursday.
The guideline, issued by the General Office of the State Council, said the internet platform economy has made an important contribution to optimizing resource allocation, promoting industrial upgrading, expanding consumption and boosting employment.
The platform economy refers to the use of the internet and advanced technologies in business.
Examples include shared bikes, online shopping, food delivery services and online medical care.
In order to improve market access to the platform economy, registration of locations and names will be made more convenient, the guideline said.
Efforts will also be made to explore supervision rules that can adapt to the development of the platform economy and ensure fair competition.
While security should be the bottom line, enough space should be provided for the development of new forms of industry.
The construction of the latest information infrastructure, such as 5G, will also be encouraged to reduce average broadband charges for small and medium-sized enterprises and provide support for the development of the platform economy.
The guideline also called for protection of the legitimate rights and interests of participants in the platform economy, including operators and consumers.
New Shanghai FTZ area to bolster opening-up
A new area of the China (Shanghai) Pilot Free Trade Zone will be built into a special economic zone with global influence and competitiveness to better serve the country’s overall opening-up strategy, a notice published on Aug 6 said.
The State Council has sent a comprehensive plan for the Shanghai FTZ’s new Lingang area to departments and governments at all levels, it said.
Under the plan, the new area will be set up to the south of Dazhi River, east of Jinhui Port, and south of Xiaoyangshan Island and Pudong International Airport.
The first phase will cover an area of 119.5 square kilometers.
The new section will match the standard of the world’s most competitive free trade zones, and opening-up policies with strong global market competitiveness will be implemented there, the plan said.
According to the plan, by 2025, the Lingang area will have a relatively mature institutional system of investment and trade liberalization and facilitation.
By 2035, it will be built into a special economic zone with strong global market influence and competitiveness, becoming an important platform for the country to integrate with the global economy.
It will be supported in promoting investment and trade liberalization and facilitation, with a focus on the free flow of investment, trade, capital, transportation and employment, according to the plan.
Income tax shall be levied at a reduced rate of 15 percent for the first five years for qualified new enterprises engaged in manufacturing and research and development in key fields including integrated circuits, artificial intelligence, biomedicine and civil aviation, the plan said.