Airbnb has ramped up operations in China, beginning with the creation of a business entity specifically to handle Chinese bookings and listings. This is part of the rapid expansion of the sharing economy in China, which is projected to account for about 40% of GDP by 2020. Despite this, Airbnb currently remains in something of regulatory limbo in China. Under local laws, private residences are not allowed to be used for commercial purposes, such as running a hotel. However, it’s debatable whether a short-term rental is the same as a hotel, and whether the two ought to be regulated similarly.
Airbnb has ramped up operations in China, beginning with the creation of a business entity specifically to handle Chinese bookings and listings. This is part of the rapid expansion of the sharing economy in China, which is projected to account for 10% of GDP by 2020. Despite this, Airbnb currently remains in something of regulatory limbo in China. Under local laws, private residences are not allowed to be used for commercial purposes, such as running a hotel. However, it’s debatable whether a short-term rental is the same as a hotel, and whether the two ought to be regulated similarly.