New labor rules to bolster consumption

As workers in new forms of employment have grown into a major force in the country's labor market and income growth, strengthened efforts to protect such workers are expected to significantly help standardize labor practices and bolster domestic consumption in the long run, industry experts said.

The comments came after Chinese authorities recently carried out administrative employment guidance for 16 major platform economy and courier companies, urging the companies to fully assume their responsibilities as employers, improve labor management and effectively safeguard the rights and interests of workers in new forms of employment.

"This round of administrative guidance is an institutional innovation through which the government uses flexible law enforcement to steer companies toward compliant employment practices and prevent labor disputes," said Pan Helin, a member of the Expert Committee for Information and Communication Economy, which is part of the Ministry of Industry and Information Technology.

"Its core lies in policy communication, greater transparency of rules — such as order allocation, payment of remuneration and disclosure of algorithmic rules — and compliance guidance, so as to encourage companies to proactively identify and defuse employment risks," Pan said.

"It marks a crucial step toward the standardization and rule-of-law-based development of employment in new forms," said Chen Liteng, a senior analyst at the Internet Economy Institute, a domestic consultancy.

By turning policy requirements into concrete corporate actions, the move further consolidates and standardizes the primary responsibilities of platform enterprises in new forms of employment, Chen added.

Workers in new forms of employment mainly refer to those who accept delivery, ride-hailing, transportation and housekeeping service orders released via online platforms and provide services in accordance with platform requirements in exchange for remuneration.

These new forms of employment have become increasingly important for job creation and income growth in China. According to a national survey on workforce conducted by the All-China Federation of Trade Unions in August, the number of workers in new forms of employment has reached 84 million, accounting for 21 percent of the total workforce.

"Such workers often face practical challenges in safeguarding their rights. For example, algorithmic rules are frequently opaque, with order allocation, pricing and performance assessments dominated by platforms," Chen said.

According to the guidance, key areas include standardizing employment contracts, ensuring fairness in algorithms, safeguarding workers' income and rest rights, and improving access to social security.

Such systematic improvements in protecting these workers' rights would generate sustained momentum for domestic consumption, Chen noted.

"With a more stable income and stronger social protection for this vast group of workers, their disposable income and consumer confidence will rise accordingly, directly translating into greater demand for consumption," Chen said.

"More important, the enhanced sense of social fairness and security brought about by such measures will strengthen the overall willingness of residents to consume, reduce concerns about spending and help shift the market from passive to proactive consumption," he added.

In fact, some companies in question have already rolled out measures to better safeguard workers' rights.

Major delivery platform Meituan has announced a special Spring Festival support and subsidy program for couriers who stay on the job during the holiday. Starting Wednesday, eligible riders who remain on duty in different regions can receive extra order-based subsidies. The platform has also distributed more than 300,000 festive shopping vouchers and provided daily necessities and household goods for its riders.

In the ride-hailing sector, major platforms including Didi, T3 and Caocao Mobility all pledged in August to further protect drivers' rights and interests by lowering commission rates. Didi said that in 2024, the average commission rate on all orders across the platform stood at 14 percent. By the end of 2025, it would have reduced the maximum commission per order from 29 percent to 27 percent, with any portion exceeding 27 percent to be refunded to drivers on an order-by-order basis.