China's Zhejiang province calls for oversight of tech giants' 'traffic power'

In a commentary published in the Communist Party's theoretical journal Qiushi, Beijing criticized major platforms for practices such as algorithmic discrimination, predatory pricing, and escalating fees that negatively impact merchants and gig workers. The critique highlighted that some platforms prioritize expanding scale and traffic over technological innovation, service quality, data security, privacy protection, and workers' rights. Authorities also noted that certain platforms have exploited their market positions for unfair competition and have shown "fierce resistance to law enforcement measures."

Instead of focusing solely on commercial algorithms for services like food delivery or e-commerce, Beijing wants digital platforms to increase investment in foundational technologies such as artificial intelligence, cloud computing, blockchain, operating systems, and semiconductors. Policymakers believe that leading internet companies possess the resources to significantly contribute to developing critical technologies and strengthening China's national innovation capabilities. Furthermore, Beijing plans to overhaul its regulatory framework for digital platforms, acknowledging existing problems stem from shortcomings in current oversight mechanisms. Regulators are advocating for stronger legal tools to combat data abuse, deepfakes, and privacy violations, alongside tougher enforcement against antitrust violations and unfair competition. Tighter scrutiny of algorithms, data flows, and platform governance rules is also anticipated.