“In recent years, the Internet, big data, cloud computing, artificial intelligence, blockchain and other technologies have accelerated their innovation and are increasingly integrated throughout the economy and society” Xi said.
According to the head of state, China must strengthen its digital economy as part of its goal of national rejuvenation. The digital economy has been identified by China as one of its main growth drivers for the coming decades, making technological self-sufficiency a national priority. Beijing has increased funding for strategically important industries such as semiconductors and artificial intelligence, and introduced laws to get the country’s powerful tech giants to align, Bloomberg reported.
Xi stressed the need to “correct” practices prejudicial to the public interest and prejudicial to fair competition.
“The tech industry is so important that the government is trying to impose compliance rules on the industry,” said Iris Pang, chief economist for Greater China at ING Bank. Bloomberg. “It actually shows that the government continues to embrace the growth of the tech industry.”
Financial technology has also been in the spotlight recently, with regulators halting Ant Group’s IPO last year. New legislation has forced fintech companies to submit to regulations similar to traditional banks.
Guo Shuqing, chairman of China’s Banking and Insurance Regulatory Commission, said she would enforce regulations more strictly and break monopolies that hinder financial sector development. China will have “zero tolerance” for illegal financial activities, Guo said in an interview with state media CCTV on Tuesday.