Xi calls for smarter regulation of digital economy and highlights its key role in future national development
- According to Xi, the digital economy is vital for China to form a new ‘development pattern’ and ‘modern economic system’
- Xi said that China has unique advantages, including its socialism system, a ‘whole country approach’ and vast market size
China must embrace the digital economy to facilitate the country’s development and strike a balance between “regulation and promotion” of the tech sector, President Xi Jinping said.
The comments by Xi, which were made at a Politburo meeting on Tuesday and published by state news agency Xinhua, showcased Beijing’s desire to use the internet, big data, cloud computing and artificial intelligence to chart the country’s economic future despite a regulatory storm over Big Tech that has wiped more than US$1 trillion in value from Chinese technology stocks.
“Developing the digital economy is a strategic choice [for China] to grasp the new round of a technology revolution and new opportunities in industrial upgrading,” said Xi. As such, the ruling Communist Party must “get a handle on the digital economy’s development trends and patterns” and push for “healthy development” of the country’s digital economy, said Xi, as reported by Xinhua.
According to Xi, the digital economy is vital for China to form a new “development pattern” and “modern economic system”, and it is essential for China to forge “new advantages in national competition”.
The summary of Xi’s speech did not directly mention China’s technology rivalry with the US, but Xi said that China has its unique advantages, including its socialism system, a “whole country approach”, and its vast market size, to “take autonomy of the digital economy firmly in our own hands”.
In addition, Xi said China can be proactive in “international digital economy cooperation” to put “China solutions” on the table and to make “China voices” heard. Xi did not elaborate further on this area.