The Ministry of Transport (MOT”) and seven other authorities jointly issued the Circular on Strengthening the Joint Regulation of Entities in the Online Car-Hailing Industry During and After the Course of Their Operations (“Circular”) on 5 June 2018.

The Circular focuses on regulating various unlawful activities, such as the unlawful operation of an online car-hailing business, fake drivers, tax avoidance, information leakage, unfair competition, unlawful payments and settlement. If a person or an entity violates the regulatory requirements and refuses to make corrections, the competent authorities may decide to report the situation to the higher competent authorities and suggest to them that they suspend or remove the app from the app market. The authorities may impose an administrative punishment, such as the termination of the person or entity’s network or business for up to 6 months, or record these administrative punishments under the entities’ name in the National Enterprise Credit Information Publicity System or other national credit information systems.

Please click here to read the full text (Chinese only) of the Circular.