CREATING THE SOIL FOR NEW ECONOMY
The country's robust economic expansion was the strongest force behind the latest sharing wave.
After more than 30 years of rapid growth, the Chinese economy has entered a key stage of economic transformation and restructuring, according to Zhuang Jian, a senior economist with the Asian Development Bank.
With the economy growing, the number of Chinese netizens reached 730 million last year, of which over 690 million access the Internet through mobile phones.
At the same time, the "Internet Plus" initiative and mobile payment technology like Alipay and WeChat wallet make sharing services easier for everyone.
Without the location technology, there would never be bike-sharing and car-sharing businesses, said Xu Zhaoyuan.
According to a guideline on China's Information Strategy released last year, the sharing economy has become an important part of China's information strategy.
In June, an executive meeting of the State Council arranged measures to further prompt the sound development of the sharing economy under the principles of inclusive and prudent regulation.
Entrepreneurs are encouraged to explore the sharing economy, while authorities aim to adjust administrative approval and business registration procedures in light of new business models, it said, promising tax and welfare policies and employment support.
"We should give credit to the sharing economy as a reinvigorating force in China's economic growth," Premier Li Keqiang said at the meeting.
Yet, like all industries witnessing breakneck growth, the sharing economy is facing challenges such as in urban management, market disorder and trust issues between users and service providers.
For example, haphazardly parked shared bikes have led to congested city sidewalks, while the handling of broken bikes is creating headaches for urban management.
"The regulation of the sharing economy should be tolerant while prudent, as there is still much yet to be learnt about new business models. We should avoid simply applying traditional methods in the sharing economy," Li said.
The sharing economy will grow at an average annual rate of 40 percent over the next few years and will account for more than 10 percent of the country's GDP by 2020, according to the State Information Center report.
Zhuang believes that China's sharing economy will serve as an example for other countries.
"There is broad prospect for the future of sharing economy," he said.
