China on Thursday announced new rules governing ridesharing services, making clear for the first time that they are now legal in a giant market where US-based Uber is at loggerheads with local rival Didi Chuxing. China has become the world's largest online car-hailing market, vice transport minister Liu Xiaoming told a briefing. "The legitimacy of internet ride-booking services are clarified" in new regulations on taxi industry reforms and regulations on car-hailing apps, Liu said.
Didi Chuxing said it was "the first time" any government had legalised online car-booking services at the national level, hailing the move as a "milestone". Beijing's stance on the sector had been ambivalent because while the apps have won public support, they threaten old-style taxis - which often generate income for local authorities - and have been met with protests by cab drivers.
The services have been banned in some cities. Liu said the new rules will support the development of online car-booking platforms, adding that private cars were encouraged to provide ridesharing services to "promote the sharing economy" and "ease traffic jams in cities and reduce air pollution".