The market logic behind the controversy over electric business vie

As a new business model, the Internet has been constantly subverting the traditional consciousness and norms since its birth. And because it is new things, the internet and inevitably appear all kinds of imperfect, it will inevitably produce a variety of disputes. During the national "two sessions", the controversy over the structural development of variable interest entities (VIE) has once again become a hot topic of concern for industry insiders. Regardless of the outcome of the debate, they are looking at solutions to various problems, which will play an active role in the construction of the new Economy (310358, the Fund bar) and the newly established order.

Is "loose" is the "tight" debate

"Under the VIE structure, the large number of E-commerce transactions in China are free from the existing legal supervision, there is a serious lack of supervision, law enforcement vacancy phenomenon, so we must strengthen the supervision of vie." "Suningyun, chairman of the Jindong in the national" two sessions "proposal to throw out such a view.

Robin Li, Baidu's chief executive, apparently disagreed, saying: "Companies should be encouraged to develop with the VIE structure, and the government should also remove the restrictions on the VIE in the electronic payment licences and mergers and acquisitions review, that is, to give full national treatment." ”

Two members of the Council, one emphasizing regulation, one loosening of ideas, two distinct views have caused a stir on the internet.

Since the controversy is on the internet, and Robin Li is the voice of the Internet, its support rate is very high.

Internet analyst Gockai said: "More than 10 years ago, the Internet industry has just emerged, the state has no corresponding support policy." China's Internet enterprises to give full play to intelligence, the introduction of the shareholding structure of vie, not only to obtain the development of the valuable funds, but also cleverly evade policy restrictions. VIE structure for the development of China's internet industry, the work must be done. Jindong It is not necessary to strengthen the regulation of the vie for E-commerce. ”

Yanping, founder of Dcci Internet Data Center, said the same is to participate in the national "two sessions" of the representative members, Robin Li proposal vie untie, cancel wireless internet identity authentication, MA initiative to administer the network according to law, Lei proposed to improve the Internet entrepreneurial environment, and Jindong thought is a broken competitor's posterior, pinch the internet neck.

In the face of the internet, a criticism of the voice, Jindong appears very wronged and helpless. "My proposal is entirely in the industry development and national strategic perspective, but the relevant enterprises from a one-sided point of view to distort, mislead or even attack." "Jindong said that his proposal to strengthen the legal management of E-commerce industry, the aim is to create a normative, legalized business environment, to protect the sustainable development of the industry, not to suppress small and medium-sized businesses."

On the internet attack Jindong Voice, Suningyun, vice chairman of the electric power weimin can't see down. "Jindong's proposal expresses two core demands: first, the hope that the development of E-commerce into the legal track; second, in the development of e-commerce, online enterprises should implement a uniform scale of legal standards. A lot of comments on the internet clearly distort his meaning. Weimin explained.

Internet "unspoken rules" is not

The debate over the Internet over vie has been an unprecedented one, reflecting, to some extent, the many unresolved problems of the Internet, and the two people's proposals represent the voices of different interest groups. In this regard, Shanghai Jiao Tong University of Media and design lecturer Wei, Su Ning as a new internet in the field of traditional businesses, its competitors are Taobao, Jingdong Mall and so on. In Jindong's eyes, the entire electric business sector is showing a vicious competition that is rife with price wars, which stems from the company's goal of making a public listing rather than making a profit, while the VIE structure is the culprit in pushing the target, and he wants to tighten regulation of the vie.

"Baidu is not, the company is the use of VIE structure of the Chinese-controlled overseas listed companies, the real experience of the Vie path, coupled with the recent market has more Baidu on the domestic Internet company mergers and acquisitions rumors, Li asked for the VIE structure untie, there is a side on the Baidu position, But it is also objectively an appeal for other vie structures in the industry or for Internet companies that intend to grow through the VIE structure. Wei said.

Internet watchers believe that: "Jindong and Robin Li's proposal on the face of the contrary, but the actual point of view is different." The VIE structure has promoted the development of China's Internet in the past more than 10 years, and the government has mostly adopted the tacit attitude in the supervision level, but there are still some relative measures to formalize and institutionalize the VIE structure in China. To this end in 2011-2012, such as the payment of the Bo vie such a storm, and even triggered a "butterfly effect", so many internet companies have been hit. In this regard, it is necessary to regulate the VIE. ”

"The VIE structure itself is a strategy to circumvent policy constraints, it may be fine in the absence of a problem, but if there is a problem it will affect many enterprises." "An unnamed internet source said that their company is mainly mobile internet business, but also the use of VIE structure, the company's ultimate goal is to go public, so they are now mainly to do large-scale, attract more attention, in the market can have a good evaluation price." As for profit, not only business executives are not very concerned, investors are not very concerned. In his view, such a practice is dangerous.

Should let the market decide

Aside from their respective positions, should there be greater regulation or further loosening of the VIE structure?

In fact, Vie is the last resort in the rapid development of Internet in our country. For example, the portal needs the News publishing qualification (ie, Internet News Information Service license), but it is expressly stipulated in the regulation of Internet news Information Service that "No organization shall establish Sino-foreign joint ventures, Sino-Foreign cooperative operation and Internet News information service units of foreign capital operation". For example, video sites need network audio-visual license, but also excludes foreign investment in enterprises. Internet companies in China have come up with the structure of vie to make things more operable, even if they want to get a license and want to go overseas.

Wei said that at present 99% of the Internet companies need to inject external funds, the VIE structure has indeed played a positive role. He also hopes that the government can untie the vie: "In the overall situation, China's demand for overseas funds is still very strong, investment is still a local play, sustainable development or development, overseas funds is of course an important source." The loosening of VIE is beneficial to the introduction of foreign capital and advanced experience in China, especially in the new economic field of the Internet, the introduction of not only funds but also advanced management methods are very experienced. ”

"Whether the Vie is to be strengthened or loosened is a real reflection of whether the Government should step up supervision over the Internet or let it go, and in my opinion, the government should let go of the issue of market competition and let the market decide on the premise of complying with the law." Xu Xiaolan, president of the China Electronic Society, said that it is not only relying on regulation, but also relying on industry self-discipline and improving the quality of entrepreneurs to regulate their behavior.

In the past, there have been some problems in the field of electronic commerce, and the government has to solve the problem of the whole environment rather than the market. I think that the government should do what the government does, and the market should be done by the market instead of the government. Xu Xiaolan said that the internet is a new thing, there are many imperfect places, how to improve the need to follow the development of the market law, rather than the emergence of disputes require the government to intervene. What the Government should do is to create a good environment, to be and enforced, and to increase law enforcement from the legal level. "Not to say two people quarrel, I also want to come out to mediate, let you don't quarrel, let him don't price, this way is wrong."

Ziqiang, a researcher and communication technology expert at the Institute of Acoustics of the Chinese Academy of Sciences, also said that the development of the Internet is open, and under the current industrial environment, the strict supervision system will have some benefits to industrial development in the early stage of industrial development, but this is not conducive to the long-term development of the industry The relevant regulatory bodies should be relaxed about the internet without touching the law on the issue of market competition.