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September 2016
First there is the sheer size and success of the sharing economy
China. As of 2015, the sharing economy in China is valued at
US $299 billion (RMB 1.956 trillion) and is expected to grow 40
percent over the next five years, eventually making up 10 percent
of China’s total GDP. Several of the biggest sharing economy
success stories have come out of mainland China, such as Didi
Kuaidi, which has been valued at U.S. $7 billion in 2015. The
report further indicated that in the near future, 5-10 new large
scale sharing economy companies on par with Didi Kuaidi or
even Alibaba will be developed in China.
Secondly, the report is significant because it is a symbol of the
Chinese central government’s willingness to embrace the shar-
ing economy and actively play a role in its development. While
western governments have seen the development of the sharing
economy as a challenge to be controlled, it would appear that
Chinese authorities view the sharing economy as a tool for eco-
nomic development.
This report shows initiative on the part of the authorities to get see more and more resources becoming “sharable.” Once you
out ahead of the economy’s development in terms of policy. start looking for it, excess supply is everywhere. Recently Lenovo
Reports have suggested that China could be one of the first has expressed interest in creating a sharing platform that would
countries to establish consistent and appropriate tax codes for utilize the company’s facilities and distribution channels to help
the sharing economy, as well as create legislation for tracking start-ups in their product development. Baidu CEO Robin Li also
and punishing abuses related to consumer safety and fraud, such has spoken about sharing the firm’s AI technology and big data
as the 2015 report by the Ministry of Transport regarding ride capabilities with other firms to fuel tech development.
sharing services. Large companies also stand to play a role in
developing the Chinese sharing economy, with Tencent, Lenovo, New technology and applications are a constant threat to disrupt
and LinkedIn all recently indicating their support for the Com- the sharing economy, and the regulatory landscape can change
mission on the Sharing Economy in China (CSEC). rapidly. As such, foreign firms need to be keenly aware of the
development of the sharing economy, and consider how they can
Opportunities for Foreign Companies use the various sharing platforms to their advantage.
Pony Ma, the founder of Chinese online leader Tencent, has This article was first published on China Briefing. http://www.china-
recently pointed out that China’s sharing economy may be on the briefing.com.
verge of a golden age. He very well may be right, as the Chinese
sharing economy is filled with potential. China is home to 620 Since its establishment in 1992, Dezan Shira & Associates has been
million cellphone users, and when surveyed, 94 percent of people guiding foreign clients through Asia’s complex regulatory environment
said they are willing to share online – the highest rate among all and assisting them with all aspects of legal, accounting, tax, internal
countries surveyed. The Chinese economy still has many new control, HR, payroll and audit matters. As a full-service consultancy
consumers entering the middle class for the first time who do not with operational offices across China, Hong Kong, India and emerging
have to readjust from a traditional ownership-based consump- ASEAN, we are your reliable partner for business expansion in this
tion model. This represents a very fertile environment for the region and beyond.
growth of the sharing economy.
As the Chinese sharing economy matures and receives continued For inquiries, please email us at info@dezshira.com. Further informa-
government support to develop, it is very possible that we will tion about our firm can be found at: www.dezshira.com.
5
First there is the sheer size and success of the sharing economy
China. As of 2015, the sharing economy in China is valued at
US $299 billion (RMB 1.956 trillion) and is expected to grow 40
percent over the next five years, eventually making up 10 percent
of China’s total GDP. Several of the biggest sharing economy
success stories have come out of mainland China, such as Didi
Kuaidi, which has been valued at U.S. $7 billion in 2015. The
report further indicated that in the near future, 5-10 new large
scale sharing economy companies on par with Didi Kuaidi or
even Alibaba will be developed in China.
Secondly, the report is significant because it is a symbol of the
Chinese central government’s willingness to embrace the shar-
ing economy and actively play a role in its development. While
western governments have seen the development of the sharing
economy as a challenge to be controlled, it would appear that
Chinese authorities view the sharing economy as a tool for eco-
nomic development.
This report shows initiative on the part of the authorities to get see more and more resources becoming “sharable.” Once you
out ahead of the economy’s development in terms of policy. start looking for it, excess supply is everywhere. Recently Lenovo
Reports have suggested that China could be one of the first has expressed interest in creating a sharing platform that would
countries to establish consistent and appropriate tax codes for utilize the company’s facilities and distribution channels to help
the sharing economy, as well as create legislation for tracking start-ups in their product development. Baidu CEO Robin Li also
and punishing abuses related to consumer safety and fraud, such has spoken about sharing the firm’s AI technology and big data
as the 2015 report by the Ministry of Transport regarding ride capabilities with other firms to fuel tech development.
sharing services. Large companies also stand to play a role in
developing the Chinese sharing economy, with Tencent, Lenovo, New technology and applications are a constant threat to disrupt
and LinkedIn all recently indicating their support for the Com- the sharing economy, and the regulatory landscape can change
mission on the Sharing Economy in China (CSEC). rapidly. As such, foreign firms need to be keenly aware of the
development of the sharing economy, and consider how they can
Opportunities for Foreign Companies use the various sharing platforms to their advantage.
Pony Ma, the founder of Chinese online leader Tencent, has This article was first published on China Briefing. http://www.china-
recently pointed out that China’s sharing economy may be on the briefing.com.
verge of a golden age. He very well may be right, as the Chinese
sharing economy is filled with potential. China is home to 620 Since its establishment in 1992, Dezan Shira & Associates has been
million cellphone users, and when surveyed, 94 percent of people guiding foreign clients through Asia’s complex regulatory environment
said they are willing to share online – the highest rate among all and assisting them with all aspects of legal, accounting, tax, internal
countries surveyed. The Chinese economy still has many new control, HR, payroll and audit matters. As a full-service consultancy
consumers entering the middle class for the first time who do not with operational offices across China, Hong Kong, India and emerging
have to readjust from a traditional ownership-based consump- ASEAN, we are your reliable partner for business expansion in this
tion model. This represents a very fertile environment for the region and beyond.
growth of the sharing economy.
As the Chinese sharing economy matures and receives continued For inquiries, please email us at info@dezshira.com. Further informa-
government support to develop, it is very possible that we will tion about our firm can be found at: www.dezshira.com.
5
