January 29, 2023

China has unveiled a five-year plan to strengthen control of the economy

Chinese Political & Policy Updates

China has unveiled a five-year plan to strengthen control over strategic sectors, including technology and health care, in a recent move by Beijing to establish Communist Party dominance over the world’s second-largest economy.

The party’s central committee and state council or cabinet jointly released a policy document late Wednesday that would expand government legislation and create a modern regulatory environment “to meet the growing demands of the people for a better life”.

The release of the plan followed a series of disciplinary actions Stunned investors In Chinese trade and Tapped billions of dollars Estimates of some of the largest technology groups in the country.

Beijing seemed to use the output to give direction to its width and time Regulatory Restructuring, Although the extensive document does not provide a list of specific instructions or actions. But researchers say the tests are likely to intensify.

“Regulatory agencies in China will continue to monitor foreign lists, data protection, consumer privacy, anti-competitive practices and connectivity scams in the Internet and technology related sectors,” said Bruce Pong. In the Chinese renaissance, the investment bank.

The extensive document highlights the “urgent need” for additional legislation to manage technology Education Solve the hopeless problems necessary to improve people’s livelihoods.

Research needs to be done in a timely manner to develop legal frameworks for the digital economy, internet finance, artificial intelligence, big data and cloud computing, “developing new business models in a healthy way”.

But Pang said China’s technology sector will continue to face pressure within a range Socio-economic challenges Beijing feels the need to address.

“We anticipate short-term disruption to market sentiment and pressure on the ratings of marine-listed Chinese companies in related sectors.

“Policymakers want to ensure and solve social problems effectively and efficiently to ensure social justice, justice, equality and national security and to prevent risks.”

Various Chinese regulators have issued a wide range of rules in recent weeks seeking to impose restrictions on many sectors and businesses in the name of protecting national security. Social stability.

The Ministry of Industry and Information Technology on Thursday released the final version of the guidelines for smart cars. The rules mandate that companies wishing to export user or vehicle data must first undergo regulatory data security review. Approval is required before upgrading the automotive driving software of vehicles.

The Banking and Insurance Regulatory Authority of China, the regulator of banking and insurance, has also announced plans to reform the country’s online insurance sector.

According to a report seen by the Financial Times, companies and intermediaries have been instructed to address a number of concerns, including customer data protection practices, marketing and fees. The regulator called it a significant political effort and said it would accelerate investigations.

Shares in China fell sharply on Thursday following the announcement, as the Hong Cheng Tech index in Hong Kong fell about 1 percent.

Thomas Cadley, Beijing-based researcher Kavekal Dragonomics, a research team, said its speed and intensity Sudden regulatory interventions Probably moderate but Beijing’s campaign “will not be without its hiccups”.

Gatley said the reforms would come in two broad categories: Control over information And “General Prosperity Guidelines”, or “Ways for Middle Class People to Consider Their Contribution as Consumers and Workers.”