Regulation of Digital Platforms and the State's Use of Platform Technologies in China

Abstract

Platform technologies (Artificial Intelligence and Data Analytics) are not only used in the West but also in autocratic countries. While the major players in the West are privately-owned big tech firms, in autocratic countries the government assumes a much more active role. China is the most advanced of these countries. This report takes stock of China's current state of digital platform markets and regulation of platform technologies, including a series of recent governmental interventions and a description of the Chinese Central Bank Digital Currency. It also offers a view on the current use of platform technologies by the Chinese government and the Chinese Communist Party (CCP), including Social Credit Systems and the surveillance state. Based on these insights, we identify key challenges for EU policy makers and formulate crucial questions for future (more quantitative) research.

Keywords: China, platform markets, regulation, social credit system, central bank digital currency. JEL-codes: D04, L51, L86, P52