China has five-year plans to strengthen regulatory control over strategically important sectors, including technology and healthcare, in Beijing’s recent push to maintain the Chinese Communist Party’s dominance over the world’s second largest economy. I announced the photo.
The Communist Party Central Committee and the state legislature or cabinet jointly released a high-level policy document late Wednesday. It expands state legislation and creates a modern regulatory environment in order to “meet people’s ever increasing demands for a good life”.
The announcement of the plan was followed by a series of regulatory measures: Stunned Investor with Chinese Business Knocked tens of billions of dollars from some estimates by the country’s largest tech company.
Beijing seemed to use the blueprint publication as an offer to give direction to its breadth and duration. Regulatory review, however, analysts said crackdowns would be tightened.
“Chinese regulators will continue to scrutinize companies in the internet and technology sector on issues such as listing, data security, consumer protection, anti-competitive practices and merger irregularities,” the investigator said. says Bruce Pan. At the investment bank China Renaissance.
Extensive documents emphasized the “urgent need” for additional laws regulating technology education. She solves antitrust issues that are essential to creating sectors and improving people’s lives.
Conduct timely research to establish legal frameworks for the digital economy, internet finance, artificial intelligence, big data and cloud computing to ensure that “new business models are developing in a healthy way”. is needed.
But Mr. Pan said China’s technology sector will continue to face various pressures. Socio-economic problems Beijing feels preoccupied with it.
“Given the risk of regulatory overhang, short-term market sentiment turmoil and valuation pressures of publicly traded Chinese offshore companies in related sectors are expected,” he said.
“Political decision-makers want to address and solve social problems effectively and efficiently in order to guarantee social justice, justice, equality, national security and to prevent risks.”
Various Chinese regulators say national security social stability …
The Ministry of Industry and Information Technology announced the final version of the smart car guidelines on Thursday. The regulations require that a company attempting to export user or vehicle data must first undergo a data security review by a supervisory authority. Approval is also required before the software for autonomous driving of the vehicle is updated.
The Bank of China Insurance Regulatory Commission, a banking and insurance regulator, has also announced plans to reform the country’s online insurance industry.
According to the Financial Times statement, companies and intermediaries in the sector have been directed to address a number of concerns, including customer data security practices, marketing and pricing. Regulators called it a major political endeavor and said they would step up inspections.
China’s share price fell sharply on Thursday following the announcement, and the Hang Seng Index in Hong Kong fell about 1%.
Thomas Gatley, a Beijing-based analyst with the Gavekal Dragonomics research group, said: Sudden regulatory interventions may be moderate, but Beijing’s campaign is “not without its hiccups.”
Gatley said reform falls into two broad categories. Information Management And “common prosperity guidelines” or “how to care for middle class people in consumer and worker roles”.
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China Unveils Five-Year Plan to Strengthen Economic Control China Unveils Five-Year Plan to Strengthen Economic Control