China Targets Addiction, Echo Chambers, and Pricing Abuse: Could the Algorithm Crackdown Work?

Leonard Sengere Avatar

You know how, despite your best efforts, you still find yourself mindlessly scrolling on your preferred social media platform? It’s not you.

Well, it’s you a little, but for the most part, you have no chance. The systems that serve you content (algorithms) have been expertly crafted to ensure you can’t put your phone down.

So, although we love to talk about a Terminator-style robot uprising in the future, we are already slaves to algorithms.

Reminder: Algorithms are like a set of rules or instructions that social media sites use to decide what content to show you. They help prioritize what you see based on what they think you’ll like or find interesting.

They are good at what they do, which is why you may feel powerless to fight the urge to put the phone down.

The Chinese government is trying to fight this.

China Cracks Down on the Use of Algorithms

China has set a deadline of February 14, 2025, for tech companies to rectify issues with their recommendation algorithms as part of a three-month campaign initiated on November 24, 2024.

The campaign targets the elimination of “echo chambers,” addiction-inducing algorithms, unfair pricing practices, and the protection of gig workers’ rights.

Addiction-Inducing Algorithms

I talked about how these tech companies’ algorithms are addiction-inducing above. However, the other problems that China is trying to fight are huge as well.

Echo Chambers

Echo chambers are situations where people are only exposed to opinions or information that match what they already believe.

This happens because they tend to follow or talk to others who share their views, and social media algorithms often show them similar content based on their preferences.

We’ve all encountered people who seem unaware of any views that differ from their own. If we’re honest, we can be that way on certain issues, too.

I guess some Zimbos are not too bad on this one. I know too many people who follow the likes of Jonathan Moyo on X despite being driven mad by every single post of his.

Some people, who think they are enlightened, tell these people to unfollow Moyo for their own sanity. However, the healthy thing is to constantly be exposed to thinking you don’t agree with. So, kudos to those who keep up with wild ideas they don’t agree with.

Unfair Pricing Practices

Unfair pricing practices refer to situations where companies use algorithms to charge different people different prices for the same product or service, based on factors like their location, browsing habits, or perceived willingness to pay.

The above and more are what the Chinese government is trying to fight.

The Crackdown

China has instructed tech companies to conduct self-examinations and improve algorithm security capabilities.

Businesses have until the end of 2024 to self-correct their practices, with local authorities set to assess compliance in January 2025 and a comprehensive government review expected by mid-February 2025.

China’s Cyberspace Administration mandates that tech platforms disclose how their algorithms rank content and prohibits the collection of excessive personal information for content recommendations.

On the issue of dynamic pricing, the directive bans targeted pricing based on user demographics such as age and occupation, presumably to ensure fair pricing practices across China’s e-commerce sector.

About Time or Scary?

While the regulation aims to address genuine issues like algorithmic fairness, addiction, and exploitation, it risks curbing innovation, increasing state control, and creating an environment of overregulation.

If history is anything to go by, the citizens of countries that follow China’s lead in regulating this will cry foul.

Overregulation

Balancing consumer protection with maintaining a free and competitive market is critical. However, China being China, these measures could lean more towards enhancing government oversight than empowering users.

Sort of like the WhatsApp Group fiasco in Zimbabwe—it’s more likely about enhancing government oversight than protecting Zimbos.

Requiring algorithm transparency could give the government detailed insight into how companies operate, leading to increased state control over the private sector.

Innovation Suffers

This will definitely stifle innovation, as companies may be reluctant to develop advanced algorithms if they fear excessive government scrutiny or forced disclosure of trade secrets.

I’ll tell you right now that companies outside China are salivating, thinking about Chinese companies being forced to reveal proprietary algorithmic techniques.

These competitors outside China could use this information to replicate or counter their innovations. Remember that TikTok is Chinese, and their algorithms are the source of envy across the world. Imagine the scenes if they are forced to reveal them.

There are other concerns when it comes to this, but I’ll end here. The algorithm crackdown sounds good on paper, but when you think about it a little, you realize you hope it doesn’t catch on.

Also read:

3 comments

  1. Ryan

    If Algorithms are making people addicted, I wonder what future generations will be like.

  2. CCP told CCP ‘Stop it!’

    Seems CCP wants to possess the One True AI to rule them all. They might also be trying to funnel limited resources like controlled GPUs and talent into CCP’s arsenal. As for Echo Chambers, I feel its once again to enhance control on what they already had in hand since they are the Echo Chamber!

  3. Ok

    I dont see anything bad about these regulations. I think they are good.

Join Waitlist We will inform you when the product arrives in stock. Please leave your valid email address below.