Current Status and Challenges of China’s Platform Economy: A Macroeconomic Perspective

Research Article
Open access

Current Status and Challenges of China’s Platform Economy: A Macroeconomic Perspective

Yihan Wang 1*
  • 1 Institute of Economics, Santa Monica College, Santa Monica, USA    
  • *corresponding author 77elvasweeney@gmail.com
AEMPS Vol.187
ISSN (Print): 2754-1177
ISSN (Online): 2754-1169
ISBN (Print): 978-1-80590-173-0
ISBN (Online): 978-1-80590-174-7

Abstract

China’s platform economy refers to the constituent system of digital platforms facilitating monetary transactions of goods, services, and information. This form of digital network economy has gradually turned into a large macroeconomic pillar of the current Chinese economy. It is shown that digital platforms facilitate the growth of China’s gross domestic product (GDP), alter the form of consumption, create new sources of employment, and promote industrial upgrading by deeply penetrating various sectors in society. It shows that platform-driven digital activity made up about 39 percent of China’s GDP as of 2021, which indicates deep economic penetration and a new engine for growth. At the same time, the rapid development of platforms brings about policy issues in fair competition, market regulation, and labor protection. The study explores these issues in market concentration and gig labor precarity and discuss regulatory measures taken recently. The significance of this research is to inform high-quality economic development and well-balanced policy in the digital era. The findings imply that the platform economy is a significant contributor to China’s economic expansion and structural change, yet it calls for prudent governance to maintain sustainable and inclusive development.

Keywords:

Platform economy, digital economy, macroeconomic impact, employment

Wang,Y. (2025). Current Status and Challenges of China’s Platform Economy: A Macroeconomic Perspective. Advances in Economics, Management and Political Sciences,187,45-51.
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References

[1]. China Academy of Information and Communications Technology (CAICT). (2021). White Paper on the Growth of China’s Digital Economy. Beijing: CAICT Press.

[2]. Chen, Y., Xu, S., Lyulyov, O. and Pimonenko, T. (2023) China’s Digital Economy Development: Incentives and Challenges. Technological and Economic Development of Economy, 29, 518–538.

[3]. Yang, G., Deng, F., Wang, Y. and Xiang, X. (2022) Digital Paradox: Platform Economy and High-Quality Economic Development—New Evidence from Provincial Panel Data in China. Sustainability, 14, 2225.

[4]. Parker, G.G., Van Alstyne, M.W. and Choudary, S.P. (2016) Platform Revolution: How Networked Markets Are Transforming the Economy and How to Make Them Work for You. New York: W. W. Norton & Co.

[5]. Pan, W., Xie, T., Wang, Z. and Ma, L. (2022) Digital Economy: An Innovation Driver for Total Factor Productivity. Journal of Business Research, 139, 303–311.

[6]. Xinhua News Agency. (2023). China’s online retail sales up 4% in 2022. China Daily

[7]. Van Eck, L. (2024) China’s Gig Economy: Key Data and Insights. BenCham Shanghai – Belgian Chamber of Commerce in China.

[8]. Liu, S. (2022) Anti-monopoly Supervision Model of Platform Economy Based on Big Data and Sentiment. Frontiers in Psychology, 13, 953271.

[9]. Colino, S.M. (2022) The Incursion of Antitrust into China’s Platform Economy. Antitrust Bulletin, 67, 237–258.

[10]. Li, C., Li, H. and Tao, C. (2023) Evolutionary Game of Platform Enterprises, Government and Consumers in the Context of Digital Economy. Journal of Business Research, 167, 113858.

Cite this article

Wang,Y. (2025). Current Status and Challenges of China’s Platform Economy: A Macroeconomic Perspective. Advances in Economics, Management and Political Sciences,187,45-51.

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About volume

Volume title: Proceedings of ICMRED 2025 Symposium: Effective Communication as a Powerful Management Tool

ISBN：978-1-80590-173-0(Print) / 978-1-80590-174-7(Online)
Editor：Lukáš Vartiak
Conference website: https://2025.icmred.org/Bratislava.html
Conference date: 30 May 2025
Series: Advances in Economics, Management and Political Sciences
Volume number: Vol.187
ISSN：2754-1169(Print) / 2754-1177(Online)

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References

[1]. China Academy of Information and Communications Technology (CAICT). (2021). White Paper on the Growth of China’s Digital Economy. Beijing: CAICT Press.

[2]. Chen, Y., Xu, S., Lyulyov, O. and Pimonenko, T. (2023) China’s Digital Economy Development: Incentives and Challenges. Technological and Economic Development of Economy, 29, 518–538.

[3]. Yang, G., Deng, F., Wang, Y. and Xiang, X. (2022) Digital Paradox: Platform Economy and High-Quality Economic Development—New Evidence from Provincial Panel Data in China. Sustainability, 14, 2225.

[4]. Parker, G.G., Van Alstyne, M.W. and Choudary, S.P. (2016) Platform Revolution: How Networked Markets Are Transforming the Economy and How to Make Them Work for You. New York: W. W. Norton & Co.

[5]. Pan, W., Xie, T., Wang, Z. and Ma, L. (2022) Digital Economy: An Innovation Driver for Total Factor Productivity. Journal of Business Research, 139, 303–311.

[6]. Xinhua News Agency. (2023). China’s online retail sales up 4% in 2022. China Daily

[7]. Van Eck, L. (2024) China’s Gig Economy: Key Data and Insights. BenCham Shanghai – Belgian Chamber of Commerce in China.

[8]. Liu, S. (2022) Anti-monopoly Supervision Model of Platform Economy Based on Big Data and Sentiment. Frontiers in Psychology, 13, 953271.

[9]. Colino, S.M. (2022) The Incursion of Antitrust into China’s Platform Economy. Antitrust Bulletin, 67, 237–258.

[10]. Li, C., Li, H. and Tao, C. (2023) Evolutionary Game of Platform Enterprises, Government and Consumers in the Context of Digital Economy. Journal of Business Research, 167, 113858.

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