China wants to work with foreign peers on antitrust issues: central bank vice-governor

[SHANGHAI] China's regulators want to step up exchanges with international counterparts and strengthen co-operation on anti-trust issues, data treatment and consumer protection, China's central bank vice-governor said in a Financial Times opinion piece.

Pan Gongsheng said authorities wanted to ensure fintech regulation was effective, measured and would guard against cross-border regulatory arbitrage and contagion.

Fintech was still finance in essence, so the principle of "same business, same rules" should apply," he added in the piece published on Wednesday.

"We need regulation that emphasises the substance not the form of a company. The aim is to align business rules and standards with regulation to fend off arbitrage."

His comments come as China has tightened scrutiny over its tech giants in recent months, particularly those that have expanded into financial services, by drafting new anti-monopoly rules and guidelines and reversing a once laissez-faire approach.

Mr Pan said that Chinese regulators were addressing regulatory gaps and trying to mitigate financial risks posed by internet businesses, noting that a practice by some big companies to use profits from their other businesses to unfairly grab fintech market share was a global issue.

"When we insist on good supervision, equal access and fair competition, fintech will develop in a way that balances capital expansion, innovation and public interests, and develops technology for good," he said.

"It's not an easy task. We need to try hard and work together."

REUTERS

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