Alibaba Photo: VCG

China's top economic planner has emphasized the important role of platform companies in driving technology innovation, transforming traditional industries, and enhancing the nation's global competitiveness. The authorities have pledged to provide further support to platform companies as part of China's ongoing efforts to regulate and promote healthy and sustainable development of the industry.

Platform enterprises are increasingly investing in technological innovation, which is empowering the real economy, according to the National Development and Reform Commission (NDRC) based on an in-depth investigation into the development of platform enterprises. 

In the first quarter of 2023, China's top 10 platform companies saw a 15.6 percent quarter-on-quarter increase in investment in chip technology, automatic driving, new energy, and agriculture. 

From 2020 to 2022, the top 10 Chinese platform companies, based on market capitalization, invested over 500 billion yuan ($69.7 billion) in research and development (R&D), with an average annual growth rate of 15 percent. They also obtained more than 50,000 patents, establishing themselves as a key force in digital technology innovation.

Among notable investment cases, Tencent is increasing its investment in chip company Enflame to support the research of high-end domestic AI chips. Meituan, on the other hand, is supporting Rong Semiconductor Co to strengthen wafer manufacturing for 12-inch chips and conducting research into image sensors used in Meituan's delivery drones, automatic distribution vehicles, data centers, and other businesses.

The NDRC also highlighted the role of platform companies in driving the integration of digital and brick-and-mortar industries, improving efficiency, and promoting high-end intelligent development. For example, Alibaba-backed Huitongda Network Co., an e-commerce platform serving rural areas, has helped over 27,000 rural stores digitize and enabled nearly 1,000 types of agricultural products to reach urban consumers.

Furthermore, platform enterprises are actively participating in international competition and expanding their influence in the global market. Meituan's investment in VisionNav Robotics has resulted in the sale of unmanned forklift truck products to more than 15 countries and regions. Tencent's investment in Yunji Technology has led to the development of internationally competitive service robot products, serving more than 20,000 users across 41 countries and regions.

These investments have not only generated substantial returns and enhanced the competitiveness of platform enterprises but have also driven high-level technological self-reliance, improved the efficiency of the real economy, and contributed to the construction of a modern industrial system and high-quality development, according to the NDRC.

The NDRC has expressed its commitment to continue supporting platform enterprises in playing a more active role in leading development, creating jobs, and competing internationally. 

Chinese authorities have stepped up their efforts to boost the healthy development of platform economies and the country’s private sector.

Chinese regulators on Friday announced a fine of 7.12 billion yuan on Ant Group, while declaring an end to the rectification of most of the outstanding problems in the financial business of platform enterprises that started in November 2020. 

The fines came as part of the efforts to further regulate the nation's platform economy and create a healthy and sustainable development for the industry to progress, experts said.

In a bid to shore up private companies, the NDRC organized two meetings with private sector leaders from July to learn about the operation and development of private enterprises, difficulties faced and opinions and suggestions.

The move showed that Chinese authorities attach great importance to the current development of the private economy, and will do its best to help enterprises solve practical difficulties through pragmatic and effective policy measures, experts said, expecting more concrete measures to be announced in near future.

Private enterprises in China serve as the backbone of the economy, making a significant contribution to the country’s economic development. They account for over 50 percent of tax revenue, more than 60 percent of GDP, over 70 percent of technological innovation, more than 80 percent of urban labor employment, and more than 90 percent of the total number of enterprises.