China’s sharing economy could run into trouble

As more startups enter the market to share products that are less frequently used, it may be a signal that China’s sharing economy bubble is about to burst.

From homes, offices, bikes, power banks, umbrellas and even basketballs, start-ups in China are now taking the concept of sharing into a new level as the world’s second-largest economy embraces the new economic model much faster than any other countries.

China’s State Information Center estimated that the value of the so-called “sharing economy” could grow by 40% annually over the next few years, accounting for over 10% of the country’s gross domestic product by 2020, and create a number of business conglomerates across sectors.

Despite some initial scepticism, the concept of collaborative consumption has received a warm welcome from the public. The rapidly-growing popularity of taxi-sharing app...

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