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Xi Jinping Wants Steps to Combat the “Unhealthy” Development of the Digital Economy – Klik Asean

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Xi Jinping Wants Steps to Combat the “Unhealthy” Development of the Digital Economy

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SHANGHAI: As Beijing strives to encourage the sector’s contribution to the country’s growth, President Xi Jinping is pushing for improved regulation and administration of China’s digital economy to prevent the country’s “unhealthy” expansion.

In an essay on Saturday (January 15th) in the ruling Communist Party’s publication request, Xi called for a focus on key areas such as integrated circuits, displays, telecommunications equipment, and intelligent hardware.

“We need to foster a number of internationally competitive companies and leading ecology companies to manage the industrial chain to build a world-class digital industrial cluster,” China said.

 “We need to make sure that China’s digital economy is big, but not strong and fast, but not superior to the large and powerful countries of the world’s digital economy.”

“We must see that compared with large and powerful countries in the global digital economy, China’s digital economy is big but not strong, and fast but not superior.”

Xi also urged for more regulation and standardization in the world’s second-largest economy to eliminate regulatory gaps and avoid “capital monopoly and chaotic expansion.”

“China’s digital economy is a sick and unstable pathogen that not only threatens the nation’s economic and financial stability, but also breaches laws and regulations. Moreover, tendencies were revealed.”

China also focuses on strengthening early warning, prevention, and control systems for the digital economy to secure key technologies, key industries and facilities, strategic resources, and key companies. The national security system needs to be improved.

Xi’s article comes on the heels of the Chinese Cabinet’s announcement on Wednesday of the Digital Economy Development Plan, which aims to boost the sector’s part of the economy.

The plan also highlighted challenges such as lack of innovation capacity and weak governance in key areas.

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