SHANGHAI: President Xi Jinping has called for better regulation and governance of China’s digital economy to guard against its “unhealthy” development, as Beijing aims to boost the sector’s contribution to the country’s growth.
In an essay in the ruling Communist Party publication Qiushi on Saturday, Xi called for focusing on key areas such as integrated circuits, displays, communications equipment and smart hardware.
China should “cultivate a number of internationally competitive enterprises and leading green enterprises controlling industrial chains, so as to create world-class digital industry clusters”, he said. .
“We need to see that compared to big and powerful countries in the global digital economy, China’s digital economy is big but not strong, and fast but not superior.”
Xi also called for regulation and standardization to close regulatory loopholes and prevent “monopolies and the disorderly expansion of capital” in the world’s second-largest economy.
“During its rapid development, China’s digital economy has also exhibited unhealthy and erratic seeds and trends that not only affect the healthy development of the digital economy, but violate laws and regulations and pose a threat to national economic and financial security,” he added. he said.
China should also improve its national security system, with emphasis on strengthening the early warning, prevention and control systems of the digital economy to ensure the safety of key technologies, industries and facilities. important, strategic resources and leading companies.
Xi’s essay follows a plan released Wednesday by China’s Digital Economy Development Cabinet, which aims to increase the sector’s share of national GDP by pushing technologies like 6G and big data centers. .
This plan also highlighted challenges, including a lack of innovation capacity in key areas and weak governance.
(Reporting by Andrew Galbraith; Editing by Mark Heinrich)