“In recent years, the Internet, big data, cloud computing, artificial intelligence, blockchain and other technologies have accelerated their innovation and have increasingly integrated into the whole economy and society,” Shi said.
According to the head of state, China must strengthen its digital economy as part of its goal of national revival. The digital economy has identified China as one of the key drivers of its growth over the next few decades, making technological self-sufficiency a top national priority. Beijing has increased funding for strategically important industries such as semiconductors and artificial intelligence, as well as introduced legislation to join the country’s powerful technology giants. Bloomberg Report
Xi emphasizes “correct” practices that are detrimental to the public interest and detrimental to fair competition.
“The technology industry is so important that the government is trying to impose compliance regulations on the industry,” said Iris Pang, chief economist for Greater China at ING Bank. Bloomberg. “It actually highlights that the government is still embracing the growth of the technology industry.”
Financial technology has also come under discussion recently, with regulators closing Ant Group’s IPO last year. The new law would have to regulate fintech companies like traditional banks.
Guo Shuqing, chairman of the China Banking and Insurance Regulatory Commission, said it would implement the regulation more strictly and break the monopoly system that hinders the development of the financial sector. China’s state-owned media said in an interview with CCTV that China would have “zero tolerance” for illegal financial activities.