China’s tech giants off leash after years-long crackdown, as Beijing primes them to be the economic engine they once were
- China’s top economic planner on Wednesday endorsed projects by 10 leading internet giants, including Alibaba, Tencent and Meituan
- US technology curbs on China remain despite the resumption of bilateral talks, and there are ongoing concerns over slowing economic activities in the second quarter
China is sending its strongest signal yet that it supports the development of platform companies, putting an end to years of probes into tech firms at a time when Beijing is going all-out to prevent economic growth from sputtering.
Premier Li Qiang said on Wednesday that the government would cultivate a regular communication mechanism with platform companies to “stay up on corporate difficulties and concerns, improve relevant policies and measures, and push for healthy and sustainable development of the platform economy in line with regulations”.
Li’s comments came at a discussion with major platform companies such as Meituan, Alibaba Cloud and Douyin, after China’s top economic planner – the National Development and Reform Commission (NDRC) – earlier in the day endorsed the investment projects of leading platform companies, which Beijing sees as essential to fuelling growth and creating jobs.
Alibaba, Tencent and Meituan have all received hefty fines and undergone heavy business restructuring since October 2020 amid Beijing’s regulatory crackdown.
The trio were among 10 leading internet giants praised by the NDRC. Alibaba owns the South China Morning Post.
The top economic planner also laid out the initial boundary of China’s so-called green-light projects – where private internet giants can invest and receive government backing, pinning high hopes on their role in boosting the development of the real economy and shoring up headline growth.