Internet economy to also get green lights, not just red ones

The dramatic rebound of China-concept stock listed on the Hong Kong and US stock exchanges on Wednesday last week, particularly some Chinese IT companies, is not only because of the positive signals the central authorities sent out that day but also due to the market's confidence in China's digital economy and the development of its internet industry.

The reassuring message from the Financial Stability and Development Committee under China's State Council has undoubtedly responded to the market's worry that the administrative departments' tightening of their supervision of IT companies would affect the development of the sector as a whole.

In a statement, the committee urged relevant departments to make their supervision more law-based, transparent, predictable and compatible with market law and international conventions, so that not only red lights but also green lights are in place to promote the healthy development of the platform economy and improve the international competitiveness of the industry.

The committee also stressed that relevant departments should earnestly shoulder their responsibilities and respond promptly to hot issues of market concern. Policymakers should coordinate with the financial regulatory authorities in advance to ensure the stability and consistency of policy expectations.

These directives show that the central authorities have drawn some lessons from the past and they intend to take concrete moves to consolidate the market's confidence in the Chinese economy and Chinese enterprises.

Striking a balance between new technology and its supervision is always tricky. If the regulation is too tight, technological progress might be stifled, and if the regulation lags behind the advancement of technology, public interests might be harmed.

China is trying to ensure the healthy development of technology that serves the public, and guarantee healthy competition in the marketplace so that innovators rather than monopoly tycoons thrive.

The digital economy has become a new driving force for the high-quality development of China's economy. China will continue to support the internet-based economy and relevant industries, which have spurred China's technological progress, boosted its international competitiveness and created large numbers of jobs.

Putting in place red and green lights will promote the stable and healthy development of the platform economy and improve the international competitiveness of Chinese internet companies.