As economic stability becomes imminent, Xi Jinping comes in as economic advisor to allay anxiety
After the regulatory storm, nothing will change in anticipation, sober evaluation
Liu He, Deputy Prime Minister of China
[Reuters = Yonhap News file photo]
Correspondent Cha Dae-Woon = China is taking steps to appease the market, saying that it will be able to predict big tech regulations this year with Deputy Prime Minister Liu He, the economic advisor to President Xi Jinping.
At a time when the global capital market has suffered a huge shock, with the market capitalization of giant Chinese technology companies such as Alibaba shrinking by hundreds of trillions of won due to the harsh regulations of the Chinese authorities, expectations are forming that the regulatory typhoon will subside with this meeting.
However, there is also an assessment that Chinas strong regulatory stance will not change in the long term, Hong Kongs South China Morning Post reported on the 20th.
The Financial Stability and Development Committee of the State Council of China held a special meeting on the 16th and emphasized that it will surely stimulate the economy in the first quarter, emphasizing transparency and predictability in the regulation of Internet platform companies.
The Financial Stability Committee also demanded that government ministries take responsibility for themselves and actively implement policies favorable to the market, and be cautious in coming up with policies that can shrink the market. In particular, the part that emphasized the need to consult with the financial authorities in advance when implementing policies that could affect the capital market or corporate production drew attention.
On the 17th, the General Administration of Market Supervision and Administration, which acted as a behemoth of big tech, such as imposing a record fine of 3 trillion won on Alibaba last year for negligence, conducted transparent and predictable supervision while maintaining the principle of first priority on stability and pursuit of development in stability on the 17th. It announced that it would promote the stability of
Some experts say that as Chinas economic stability is urgently needed amid a rapid economic downturn and external environmental instability, the market-friendly financial sector, which has rapidly gained strength last year, such as the General Bureau of Market Supervision and Management and the National Cyber Information Office, is gaining strength and is more practical than the market-friendly financial sector. There are speculations that regulations could be relaxed.
Angela Chang, a professor at the University of Hong Kong, said that this meeting, chaired by Deputy Prime Minister Liu, shows that the unprecedented law enforcement campaign for big tech, which started at the end of 2020, is coming to an end. He predicted that he would be wary of engaging in a prominent crackdown.
The SCMP said Lius instructions contained subtle warnings for regulators to stay put, meaning that Chinese authorities had no choice but to launch another regulatory storm targeting big tech this year.
However, there are voices pointing out that the possibility of unexpected bomb-level regulations is only reduced in a situation where China has already completed various legal systems for regulating big tech by last year, and that the regulatory environment surrounding big tech is not changing in general.
Chinese authorities have compared last years tightening of big tech regulations to installing traffic lights in lawless areas and demanded that the industry accept it as a new normal as the regulatory environment for a fair environment is complete.
Henri Gao, a professor at Singapore Business University, said, “I dont think this will make a big difference in the long run,” said Deputy Prime Minister Liu.
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