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Premier Li Offers Cautiously Optimistic Message About Future of China’s Sharing Economy

By Qian Tong and Zhao Runhua / Mar 15, 2019 08:04 PM / Politics & Law

Photo: VCG

Photo: VCG

Premier Li Keqiang expressed cautious open-mindedness toward the future of China’s sharing economy during a Friday press conference of the Two Sessions, China’s highest-level annual political gathering.

In his speech, Li acknowledged the sharing economy’s positive impact on employment opportunities and life in China. He also said that internet-related businesses and the sharing economy would not be used to “camouflage” fraud.

As China’s internet user base and online consumption habits grow, sharing-economy projects can attract sizable investment, but are often risky. Shared-bike company Ofo’s fall from grace raised doubts recently regarding the sharing economy models’ profitability.

Li said that the market would test new sharing-economy models and naturally eliminate some, and that “fair” governance can further guide the industry’s “healthy development.”

Ultimately, he said, the sharing economy still offers “very big potential.”

Related: Investors Grow Wary of Sharing Economy Plays

 


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