China eyes ‘substantial economic impact’ from hi-tech innovation as regulators vow more support for industry

Sectors related to technology and innovation will receive more financial support as China prioritises ‘becoming a leading tech power’

Meeting of financial regulators offers a preview of what to expect at the upcoming central economic work conference, where officials will set China’s economic and policy direction for the coming year

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China intends to make technology and innovation critical cogs in its economic engine. Photo: Xinhua

Published: 9:00pm, 23 Nov 2023

China’s major financial regulators are rallying support to turn the nation’s tech industry into a bigger player in the economy, signalling that technology and innovation will remain high on the government’s agenda in the coming year.

Officials from the People’s Bank of China, the Ministry of Science and Technology, the National Administration of Financial Regulation, and the China Securities Regulatory Commission came together on Monday to discuss how they could better direct financial resources to the tech industry in a manner that would have a “substantial economic impact”.

“We need to put our full-fledged support behind the strategy to drive innovation, and to put more financial resources toward boosting tech innovation,” a post-meeting statement said on Wednesday, adding that authorities also need to “pay attention to shortcomings in the current financial services sector”.

The statement noted that representatives from more than two dozen banks and insurance companies attended the meeting with national and provincial regulators, and it was decided that financial institutions would help improve the fintech industry.

The meeting offered a preview of what can be expected at the upcoming central economic work conference – typically held in December – when officials will map out China’s economic and policy direction for the coming year.

Last month, during China’s twice-a-decade financial policy conference, “technology and innovation” were identified as one of five areas that are in need of more financial support.