China's draft anti-monopoly rules 'timely and necessary', says Alibaba CEO

China's draft anti-monopoly rules 'timely and necessary', says Alibaba CEO

People wearing protective face masks walk past office buildings in Lujiazui financial district in P
People walk past office buildings in Lujiazui financial district in Pudong, in Shanghai, China, Jun 4, 2020. (Photo: REUTERS/Aly Song)

WUZHEN: China's move to draft rules aimed at preventing monopolistic behaviour by Internet platforms is "timely and necessary", Alibaba Group CEO Daniel Zhang said on Monday (Nov 23).

Speaking at the World Internet Conference, Zhang said Chinese Internet companies have moved to the forefront of the global industry with the help of government policies, but regulations need to evolve.

The industry's "development and government supervision is a relationship that promotes and relies on each other, so that platform enterprises cannot only develop well themselves, but also serve the sustainable and healthy development of the whole society", he said.

READ: China's banking regulator urges enhanced anti-monopoly scrutiny in financial sector

The annual event from Nov 23 to 24 organised by the Cyberspace Administration of China takes place as the country's Internet giants including Alibaba, Tencent Holdings and Meituan face increasing government scrutiny.

Earlier this month the planned US$37 billion share market listing of Alibaba affiliate Ant Group was suspended after regulators warned its lucrative online lending business faced tighter scrutiny.

READ: Ant Group fiasco reflects battle for China's financial soul

Alibaba's e-commerce marketplaces and payment services are also expected to face greater oversight under the draft rules published on Nov 10 by China's market regulator, which said it wanted to prevent platforms from dominating the market or from adopting methods aimed at blocking fair competition.

Zhang is one of the few Chinese technology chiefs to appear publicly at the event after it was scaled down due to the COVID-19 pandemic. Other chief executives such as Qualcomm's Steve Mollenkopf delivered remarks via video.

Source: Reuters/dv

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