Study On Power Mechanism Of The Internet Finance In China

This paper, first of all, analyzes the power game in Chinese Internet finance from the base of the power mechanism, and briefly demonstrates that the power mechanism is generated by the socialization of political power, and then defines three main powers in the power mechanism of the internet finance, that is, capital power, political power and technological power. The operation of power mechanisms of the internet finance is based on the interaction of the three powers. Capital power and political power are involved in each other, political power and technical power permeate and constraint each other, and technological power reconstructs capital power. Finally, the power mechanism reaches the state of check-and-balance between the powers. However, through the analysis on the case of Central Bank regulation on Alipay and Yu’E Bao, these existing problems with the operations of power mechanism are found. In internet finance, because of the inertia of the traditional financial regulation and institutional advantages, the performance of political power is more powerful in the tectonic plates of powers; The different natures of capital is not equal in the terms of rights. The traditional financial capital forces, with four major state-owned commercial banks as representatives, have been under the protection of political power to share the dividends of regulatory policies for a long time, and their relative dominance will not be suddenly weakened; Due to the lack of regulatory policy and the dual risks of internet and finance, technological power is at a relative disadvantage position. Therefore, the effective operation of power mechanism should be based on the conditions:the separation of political power and capital, political power to protect the technological innovation, political power to be independent and public power to serve the public. On the basis of analyzing the institutional factors and non-institutional factors, this paper puts forward the principles of insisting on the moderate supervision under political power, the balance and consultations of multiple powers and ensuring financial consumers’ sovereignty, and argues that to improve the institutional constraints of powers, to adhere to the public nature of political power, to orderly reconstruct the financial power structure, and enhance the power of technology, finally achieving the balance of powers in the internet finance.Study on mechanism of powers of the internet finance in China with the characteristics of the times, is closely linked to the social reality. The exterior line of this paper is the ternary framework of dynamic relationship of State--Market -- Society, and the interior line of this paper is according to the politics principle of power-to-power. This study not only provides the political thinking for China to promote the good development of the Internet finance, but also brings important enlightenment for China during transition period in re-positing the relationship between the state, the market and the society, and promoting the harmonious development of the politics, economy and society.