The Great Hall of the People is seen after the closing meeting of the fourth session of the National People’s Congress (NPC) on March 11, 2021 in Beijing, China.
VCG | Visual China Corporation | beautiful pictures
BEIJING – President of China Xi Jinping Told top leaders to speed up work on new laws for the tech sector in a speech in early December, according to a bi-monthly magazine published by the Communist Party of China on Thursday. Private.
It’s a sign that regulation hasn’t gone away, even though the speech included little in the way of new facilities and Economists expect the worst of Beijing’s crackdown is over.
China must “accelerate the law in the fields of digital economy, internet finance, artificial intelligence, big data, cloud computing, etc.,” Xi said, according to a CNBC translation. about Chinese text.
He also called for more legislation to ensure national security, and called for increased use of the law for “international struggles” – including against foreign sanctions.
But much of Xi’s speech on December 6 to the top leaders of China’s Central Politburo focused on broad theoretical views such as disobedience to Western systems. blind way.
I think the use of regulations as a tool to shape the economy and society that China wants is not over yet.
Mattie Bekink
Director of China, Economic Company Network
Over the last year, a flurry of new rules aimed at tackling alleged monopolistic practices by technology companies, data security and other issues has shocked global investors. Regulations solve long-standing problemsbut their suddenness disrupted business and has prompted mass layoffs.
“We anticipate there will be continued developments in regulations especially in regards to technology,” said Mattie Bekink, China director at the Economist Corporate Network. She pointed out that Beijing has come up with a plan to build a “China’s socialist rule of law state” in 2035.
“I think the use of regulations as a tool to shape the economy and society that China wants is not over yet,” Bekink said.
She noted that law in the West tends to focus on the relationship between the individual and the state, while in China the focus is on commercial law – the relationship between the private sector and the state. .
A public summary of what was done
Mr. Xi’s speech – given more than two months ago but made public this week – is just one of many official statements made to the public in a country where information is tightly controlled. .
Reading between similar lines of official commentary, economists concluded last week that The worst of China’s regulatory crackdown is over as Beijing focuses more on growth. But they say that does not mean reversing or ending the new rules.
“Xi places a lot of emphasis on the use of the law,” said Chen Long, partner at Beijing-based consulting firm Plenum. “The Chinese government uses a lot of regulation to govern. His idea from 10 years ago was that he wanted to put a lot of regulation into the law, so you have a legal basis for these policies.”
Chen expects fewer tech regulatory surprises this year than last year.
But he stressed it was important not to read too much into Mr. Xi’s speech. “This speech is not something new,” he said, “but rather a summary of what they’ve done.”
Even as China uses the law to counter foreign sanctions, Beijing has passed such legislation in June. If the Chinese government considers individuals or organizations to be involved in discriminatory actions against Chinese citizens or entities, the law allows Beijing to freeze assets or deny entry, along with other countermeasures. other law.
“China wants to use the law to protect its interests in relations with other countries, including adding domestic power and have a say in shaping international legal norms. to better serve its own interests – which I don’t think is unusual for a country,” said Jeremy Daum, a senior fellow at Yale Law School’s Paul Tsai China Center.
Technology regulation has global implications
China’s crackdown on technology comes as the industry rapidly grows outside of existing regulations. It’s a balance that governments around the world are trying to strike as they consider how to regulate cryptocurrencies, data, and other new technologies.
In some fields such as algorithms, Beijing is acting faster than other governments and may even set global precedents, analysts said.
Meanwhile, on the political front, Chinese authorities have stepped up efforts to reduce poverty and develop the middle class – a move that no longer prioritizes economic growth at all costs.
Much of the change comes shortly after the ruling Communist Party of China celebrates its 100th anniversary on July 1. This fall, the party is expected to hand Mr. Xi a presidential term. unprecedented third citizenship.
