Global Financialization and Local Labour Acquisition in China's Platform Economy

Abstract

The emergence of digital platforms has been viewed in scholarly narratives as a “technological fix” of global capital, to use Beverly Silver's classic term. That is, capital continues to devise innovative strategies to restructure the labour process and avoid employer legal liabilities. This study reveals an important but somewhat overlooked “financial fix” aspect of the platform economy. Through a case study of a Chinese food delivery platform, the author shows that global speculative capital and its cash-burning games have generated a form of market-value fetishism in this sector. In response, platform companies have devised innovative labour acquisition strategies to expand their market share that have profoundly shaped the work and employment dynamics within the sector. In particular, the platform companies engaged in a subsidy rivalry with their competitors in order to attract crowdsourcing/gig workers for their regular services and at the same time established a highly structured subcontracting system to secure a more reliable and committed workforce to target the relatively high-end consumer market. The author argues that the interaction between global financialization and local capital's strategic choices accounts for the peculiar structure and employment dynamics in the Chinese platform economy.