China introduces tough regulations for bike-sharing firms

APD NEWS

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China has tightened the regulation for bike-sharing companies, as startups boom.

The authorities, including transport, cyberspace watchdog, financial regulators, etc., co-released guidelines for the industry on Wednesday.

Over the past year, several Chinese start-ups have deployed tens of millions of colorful bikes in cities across the country that could be rented cheaply.

With charges paid via digital wallets and GPS-tracking devices, users can leave the bikes anywhere at the end of a ride.

A designated parking area fenced by Bluetooth is put into trial in Shanghai.

However, the conveniences are ensued by serious problems of random parking which usually block the sidewalks.

The new guideline made it clear that the service operators are responsible for managing their bikes. It also stipulated that municipal governments are entitled to ban entry of shared bicycles into certain city areas.

And the concept of virtual fences, a Bluetooth covered area designated for sharing bicycle parking which voids any parking out of the reach of the signal, is advocated and encouraged by the guideline.

It also required that users should register with real names. However, no mandatory identity checks other than mobile phone number are required for registration.

Another concern clouding over the industry is about the financial risks which the significant growth may breed.

The guideline discouraged the mandatory deposit charged by most of the operators at the first-time users (approximately 200 yuan) and said that if indispensable, the fund should be deposited in an account under the control of local regulators.

As it comes to cyber security, the authorities demand that the servers of the bike sharing companies should be located upon Chinese territory. Any collection of extra user data beyond necessity is strictly forbidden to prevent potential infringement of privacy.

(CGTN)