China’s Tech Regulator Takes on Big Tech Giants in High-Stakes Meeting
Last month, Didi recommenced accepting new users in China with the authorization of government authorities. This happened almost a year and a half after regulators demanded that the company stop enrolling customers and six months after the end of the cybersecurity investigation, which resulted in Didi receiving a fine of US$1.2 billion.
At the meeting that took place on Friday, attendees agreed that expediting the expansion of the digital economy and further consolidating it with the “real economy” (objectives set out by the top leadership of the Communist Party during the 20th national congress in October) will serve as the fundamental principles that will govern the growth of the internet sector, according to the MIIT.
The internet industry must enhance the nation’s digital infrastructure by introducing 5G networks, Gigabit Ethernet, and data centers. It must also strengthen innovation in essential technologies such as 6G, artificial intelligence, and quantum computing, and improve the regulatory framework that governs them, the meeting concluded.
The meeting takes place as Beijing reinforces its backing for the Big Tech industry to resuscitate the country’s deteriorating economy, after over 24 months of regulatory crackdown. On Friday, officials announced that the China Securities Regulatory Commission will be responsible for evaluating submissions by domestic firms for overseas listings, including in Hong Kong, beginning March 31, thus reestablishing the route of capital-raising that had been obstructed for 20 months, causing Didi’s proposal to offer shares in Hong Kong to be left in a state of uncertainty.
Additionally, governing bodies have loosened the limitations on the video gaming sphere, with authorities in Shanghai and Shenzhen promising to foster the growth of esports. In January, the National Press and Publication Administration authorized 88 new games, which exceeds the number of monthly approvals granted in 2022.