China’s State Council reiterates policy support to bolster country’s digital economy as tech war with US intensifies

The State Council has proposed an eight-pronged approach to shore up China’s digital economy

The proposal came days after a rout of Chinese tech stocks in Hong Kong and New York wiped out trillions of dollars of market value

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The policy support for the mainland’s digital economy signals Beijing’s response to the Biden administration’s recent moves imposing further restrictions against China’s tech industry. Photo: Shutterstock

Published: 5:59pm, 30 Oct 2022Updated: 3:22pm, 31 Jan 2023

The State Council, China’s cabinet, has pledged to bolster the country’s digital economy through major new policy commitments, signalling Beijing’s effort to overcome the disruptions caused by its tech and trade war with Washington.

He Lifeng, the minister in charge of the National Development and Reform Commission, reiterated the pledge as part of a digital economy development report that he delivered before the latest standing committee session of China’s top legislature, the National People’s Congress, on October 28.

The report proposed an eight-pronged approach to shore up the sector and increase the country’s international competitiveness. These include pooling resources to pursue breakthroughs in core technologies, ramping up construction of digital infrastructure, stepping up digital innovations and establishing an advanced industrial cluster.

Citing the report, He described China’s digital economy as having “infinite possibilities” and potential for massive growth, thanks to the nation’s vast digital population, various data resources, user applications and domestic demand.

He Lifeng, chairman of China’s National Development and Reform Commission. Photo: Reuters

The report also called for deeper integration of digital technologies into traditional industries to raise efficiency, enhancements in cyberspace and data security, and improved collaboration with economies around the world.

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