China leaders rev up Big Tech, letting internet platforms off leash to ‘explore and innovate’

First formal economic assessment by new leadership line-up offers insight into how China will support growth while addressing risks

Control and cultivation of AI tech like ChatGPT is also firmly on Beijing’s radar, and so is raising household income to support consumption

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China’s Politburo wants domestic internet platforms to help fuel economic growth in the country. Photo: AP

Published: 9:00pm, 28 Apr 2023

Beijing has locked its sights on advancing China’s tech sector to fuel economic growth, with leaders also vowing to break down “hidden barriers” long lamented by foreign investors and private entrepreneurs.

At a Politburo meeting chaired by President Xi Jinping on Friday, leadership said the “threefold pressure” that haunted China in the past couple of years has been alleviated following the nation’s reopening in recent months, but it also noted that there are still worrisome concerns over investor confidence and household income that are threatening the recovery’s sustainability.

“Economic growth is better than expected, market demand is improving, and economic operations have got off to a good start,” the official Xinhua reported after the meeting.

This marked Beijing’s first formal assessment of the economy since the new leadership line-up – including Premier Li Qiang and Vice-Premier He Lifeng – took office in March.

And their encouraging of leading internet platforms to “explore and innovate” appears to represent a sharp about-face following a regulatory storm over Big Tech that lasted nearly two years and slowed China’s economic momentum.

China’s primary decision-making body often convenes a conference after the release of quarterly data, to evaluate the state of the economy and discuss potential countermeasures to shore it up.

“The current economic improvement is mainly owing to recovery-driven growth, but the internal driving force is not strong, and demand is still insufficient,” the state-run news agency warned.

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