China has taken a major step toward regulating the rapidly expanding gig economy by unveiling a comprehensive policy targeting "involution-style" competition and practices that infringe upon the legitimate rights and interests of the country's new employment groups.

The policy, released by the general offices of the Communist Party of China Central Committee and the State Council on Sunday, comes as the number of flexible workers in China stands at more than 240 million, with about 84 million people engaged in new forms of employment — working as food delivery riders, ride-hailing drivers, couriers and livestreamers, among others, according to the National Bureau of Statistics.

The document sets a target that by 2027, gig workers will enjoy the benefits of standardized labor practices, improved working conditions and protected rights. It says that within three to five years, the system will mature, delivering more harmonious labor relations, higher occupational recognition and progress in the all-around development of workers.

For the first time, the policy has introduced a mandatory algorithm filing system and requires platforms to conduct regular reviews and verification of their algorithms. It guarantees gig workers the rights to be informed about, to participate in and to choose algorithm-related rules. When platforms adjust algorithms — including rules on income distribution, pricing and estimated delivery times — they must consider the views of trade unions and representatives of gig workers.

The document calls for a crackdown on "involution-style" competition — intense price and efficiency competition that can drive down pay and increase pressure on workers. Authorities have been urged to "strictly prevent damage to the legitimate rights and interests of new employment groups" and to investigate unfair commission structures, unequal distribution of traffic and abuse of market dominance.

The policy also promotes the provision of basic public services based on place of habitual residence, with coverage following workers as they move across regions. It calls for a stronger social security system, including expanding pilot programs for work-related injury insurance and the gradual inclusion of gig workers in the housing provident fund system.

Tang Daisheng, a professor at Beijing Jiaotong University's School of Economics and Management, said the policy is a major institutional innovation in labor governance.

The policy, Tang said, aims to replace the old ecosystem of unbridled capital expansion and aggressive algorithmic evolution with a new environment — one where platforms operate in compliance, algorithms are transparent and fair, and gig workers enjoy decent work.

"The policy directs its blow at the current phenomenon of platform companies seizing market share through subsidy wars, which leaves workers with meager incomes and damaged rights," he said. "This will force platforms to compete on service quality and user experience rather than by squeezing gig workers."

Tang said the mandatory algorithm filing system requires platforms to submit their basic algorithm logic, data sources and decision-making rules to regulators before deployment. "This shifts the old reactive model — fixing problems only after rights are violated — toward proactive governance," he said.

He added that regulators can now trace violations back to their source and hold platforms accountable.

In July 2025, the State Administration for Market Regulation summoned three major food delivery platforms — Ele.me (now called Taobao Instant Commerce), Meituan and JD.com — urging them to abide by e-commerce, anti-unfair competition and food safety laws. The summons came amid a price war involving low-threshold coupons, free delivery vouchers and even zero-yuan tea promotions.

Yan Dongjian, a Beijing-based Meituan rider, said that he works 12 hours daily during the slack season, earning about 400 yuan ($59) a day. In the peak winter season, with platform incentives, his daily income can reach 500 to 600 yuan.

"The biggest difficulty is traffic safety," Yan said. "Accidents often happen on the road. We're all here to make a living, but the delivery time limits are too tight." He said a typical order involves waiting for several restaurants to finish cooking, leaving little buffer time. "One order takes 25 to 26 minutes. If a restaurant is slow, you easily run late. The whole process is highly stressful."

Yan said the new rules will help curb arbitrary fines. "Platforms used to deduct money arbitrarily. Now they can't do that easily. But they also limit the number of orders — about 13 a day, with no more than two orders at a time," he said.

Yang Bin, a taxi driver in Beijing who now takes almost all orders through ride-hailing apps, expressed concerns about dispatch fairness.

On the new policy, Yang said implementation is key. "If the new rules are truly enforced, and every driver is treated fairly with more balanced dispatch, it will be good for us."

Guo Yuhe contributed to this story.

zoushuo@chinadaily.com.cn