Car-hailing business is a typical example of how sharing economy can thrive in China, says Cheng Wei, CEO of Didi Kuaidi. [Photo/IC]

Sharing Economy

The government will support the sharing economy and Internet-empowered innovations, said President Xi Jinping at the opening ceremony of the conference.

Xi's remarks boosted the confidence of the new-emerging business model, which also became a hot topic at the conference. Cheng Wei, CEO of Didi Kuaidi, China's largest car-on-demand service provider, said car-hailing business is a typical example of how sharing economy can thrive in China.

According to him, the company, which was founded in 2012 with an initial investment of 800,000 yuan ($123,760), has grown into the largest mobile-based transportation platform in the world with an estimated value of 100 billion yuan.

Sharing economy is the best way to solve the traffic jam in a long run, said Cheng, referring to Beijing's limited resources. About one in four of the 20 million living in the capital has their own vehicle. And the more than five million vehicles have brought down the average speed at rush hour to 12 km per hour.

The sharing economy will continue to thrive because it is much more than hailing a car or renting an apartment from those who have idle assets, said Charles Chao, CEO of Sina Corp, China's online media company. "Any areas that can match demand with supply can adopt this model," he said.