The headquarters of DiDi in Beijing Photo:VCG

China has recently noticeably stepped up the supervision over its internet companies. Some leading internet firms are being scrutinized for different reasons. It is believed the series of governance actions are of great significance to the regulation of the market, and should not be misunderstood as a signal that the country wants to punish those companies as a warning. 

Relevant enterprises should see China's determination to strengthen market supervision, and bid goodbye to the previous mind-set that internet companies could develop at their own will. It's time to jointly prepare to usher in an era of orderly and sustainable development of internet firms. 

Previously, China's state-owned enterprises went through a series of governance steps, including anti-corruption campaign and compliance with laws and regulations. Private enterprises have played an increasingly important role in the country's development. Regulations on them should also be strengthened to further coordinate with China's major policies to create solid conditions for better serving the country and the people. For some time, there have been many controversies over Chinese private enterprises, especially internet companies. This ranges from the so-called 996 work culture - working from 9 am to 9 pm six days a week, to executive scandals, customer murders, suspected monopoly disputes, and so on. Information security has particularly caused people's concerns.

Each company has its own different situation. But it is believed that the society has some basic expectations for private internet enterprises.

First, private internet companies should, like all business entities, follow the trend within the moral and legal framework of our society, especially some enterprises that have become a foundational platform for our digital society. The bigger they grow, the more they should realize that they have to shoulder more responsibilities. It is important for them to remember that they are private enterprises under socialism, so they need to keep promoting social justice and core social values always. These companies have to not only protect our governance system, which is socialism with Chinese characteristics, but also become a loyal and organic part of it.

Second, internet and tech companies are usually at the forefront of both technological use and business models. They are also often ahead of management measures. In this case, every successful company should help the government fill in the gaps in the rules as fast as possible. They should not use these gaps to do things that are clearly contrary to the basic spirit of the law and harm China's state governance. The more advanced these enterprises are, the more they should help build the system. They should not increase the difficulty of state regulation by creating a fait accompli, which could lead to unreasonable monopolies or competitive disruptions.

Third, as the US constantly upgrades its strategic containment of China, China's national security is now facing unprecedented challenges. Chinese internet and tech companies need to be aware of the importance of protecting the country's national security more than ever before. There can't be any loopholes in national security because some companies' shares are held by foreign capital, or these enterprises get listed outside the country. We all need to realize the urgency of such a problem from the US' increasing precautions against China's information technology.

Fourth, there are many young people in internet companies, new business forms are concentrated, and internal information and public opinion are highly interactive. This impacts young people's work and lifestyle balance. Every company should strive to ensure that these guidance and demonstrations are positive. They should avoid subversive tendencies that are contrary to the mainstream values of society. For example, the appearance of 996 work schedule and the controversy surrounding it have a strong negative impact on the society. Internet companies have their own distinctiveness, but this should be avoided.

Generally speaking, China's internet companies are developing relatively fast on the global scale. Together, they have built a center of internet economy in China, the only one outside the US. They have further strengthened competitiveness and made collective contributions to the rise of the China's comprehensive strength. However, individual network giants should not be too proud of this, and must not use the "too big to fail" thinking to play games with the national regulatory system. They cannot influence the overall rule construction of the country with their own business interests. We believe that several recent aggressive actions have created a jolt that has re-established the gravity of regulation.

This is by no means aimed at cracking down on private internet companies. Rather, it is aimed at genuinely establishing rules, building an environment conducive to protecting competition and accelerating the overall development of internet companies. It means better coordination the development of internet companies with the interests of the people and national security. 

We hope that relevant internet companies will actively cooperate with all regulatory measures, and cooperate with the country to create a win-win situation for the whole society.