The latest information on Chinese politics and policy
Sign up for myFT Daily Digest to get the first information on China’s political and policy news.
China has five years of blueprints to strengthen regulatory control over strategically important sectors, including technology and healthcare, in Beijing’s latest push to claim the Chinese Communist Party’s dominance over the world’s second-largest economy. I announced the photo.
The Communist Party’s central committee and the state legislature, or cabinet, jointly released a high-level policy document late Wednesday. It expands government legislation and creates a modern regulatory environment to “meet people’s ever-increasing demands for a good life.”
The announcement of the plan followed a series of regulatory measures: Stunned investor With Chinese business Knocked tens of billions of dollars From some assessments of the country’s largest technology group.
Beijing appeared to be using the blueprint release as a bid to provide direction on its width and duration. Regulatory reviewHowever, analysts said the crackdown would be tightened.
“Chinese regulators will continue to scrutinize companies in the Internet and technology sectors on issues such as listings, data security, consumer privacy, anti-competitive practices, and merger irregularities,” said the investigator. Bruce Pan says. At the investment bank China Renaissance.
Extensive documents emphasized the “urgent need” of additional legislation to govern technology education It solves antitrust issues that are essential for creating sectors and improving people’s lives.
Conduct timely research to build legal frameworks for digital economy, internet finance, artificial intelligence, big data, and cloud computing to ensure that “new business models develop in a healthy way.” is needed.
But Mr Pan said China’s technology sector will continue to face various pressures. Socio-economic issues Beijing feels it has to deal with it.
“With the risk of regulatory overhangs, short-term market sentiment turmoil and pressure on the valuation of offshore listed Chinese companies in related sectors are expected,” he said.
“Policymakers want to tackle and solve social problems effectively and efficiently to ensure social justice, justice, equality, national security and prevent risks.”
Various Chinese regulators say national security Social stability..
The Ministry of Industry and Information Technology announced the final version of the smart car guidelines on Thursday. The rules require that a company attempting to export user or vehicle data first undergo a data security review by a regulatory authority. Approval is also required before upgrading the vehicle’s autonomous driving software.
The Bank of China Insurance Regulatory Commission, a banking and insurance regulator, has also announced plans to reform the country’s online insurance industry.
According to the Financial Times notice, companies and intermediaries in this sector have been ordered to correct a number of concerns, including customer data security practices, marketing and pricing. Regulators called it an important political undertaking and said it would step up inspections.
China’s stock price fell sharply on Thursday after the announcement, and Hong Kong’s Hang Seng Index fell about 1%.
Thomas Gatley, a Beijing-based analyst at the research group Gavekal Dragonomics, said: Sudden regulatory intervention Perhaps moderate, but Beijing’s campaign is “not without hiccups.”
Gatley said reforms fall into two broad categories. Information management And “common prosperity guidelines”, or “how to care for middle-class people in both consumer and worker roles.”
China unveils five-year blueprint to strengthen control of economy Source link China unveils five-year blueprint to strengthen control of economy