BEIJING, Sept 19 (Reuters) – China said on Tuesday it would require online companies with vague or misleading rules to disclose them and prevent them from taking over global companies such as Amazon and Apple .
The Beijing Securities News reported the draft regulations issued by the securities regulator, the China Securities Regulatory Commission (CSRC), and posted on its website, saying companies could only freely change the language they use on their websites, websites or social media and that companies should provide adequate notice to the public.
It said some firms had already complied with requirements, and most of the violations were related to the limitation of exemption rules for companies that provided services other than the company’s home.
The rules also said any resulting “unreliable entity” issue must be disclosed openly and reliable mechanisms to resolve it should be adopted.
Industry experts have warned that some Chinese firms are passing off services such as smartphone apps and micro-blogging platforms as “lifestyle products” and that in fact they operate alongside entirely legitimate businesses.
At a Shanghai briefing for investors last month, China’s Vice Finance Minister Yi Gang said foreign companies that flout the country’s domestic regulation are under more threat than domestic firms themselves.