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China’s Xi calls for measures against ‘unhealthy’ development of digital economy -Breaking

© Reuters. FILE PHOTO – A huge screen depicts Chinese President Xi Jinping at the sixth session of the 19th Central Committee of China’s Communist Party of China (CPC) in Beijing, China on November 11, 2021. REUTERS/Tingshu Wang

SHANGHAI, (Reuters) – President Xi Jinping called for better regulation and governance in China’s digital economy. This is as Beijing seeks to increase the sector’s contributions to its growth.

Xi, in a Saturday essay published by Qiushi, the Communist Party’s official publication, called for a focus on important areas such as integrated circuits and displays.

China needs to “cure a few enterprises that are international-competitive and top ecological companies, with industrial chains control, so as to build world-class digital clusters,” he stated.

We must recognize that China’s digital economy, when compared to large, powerful, countries within the global economy, is not big, strong or fast, nor superior to those of other nations.”

Xi also demanded regulation and standardisation in order to fill regulatory gaps and stop “monopolies or disorderly capital expansion” in the second largest economy.

He stated that China’s rapid digital development has led to some “unhealthy and unregulated seeds and trends” which not only threaten the health of its digital economy but also violate laws and regulations, and are a danger to the country’s economic and financial security.

China needs to improve its security system. This should include a strong digital economy early warning, prevention, and control system. These systems will ensure security for key technologies and important industries as well as strategic resources.

Xi’s essay was inspired by a China cabinet plan on Wednesday regarding the development of digital economies. It aims at increasing the sector’s share in national GDP and pushing technology like big data centres and 6G.

This plan identified several challenges such as a low innovation capacity and poor governance.

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Mike Robinson
Mike covers the financial, utilities and biotechnology sectors for Street Register. He has been writing about investment and personal finance topics for almost 12 years. Mike has an MBA in Finance from Wake Forest University.