The Great Hall of the People’s Assembly after the closing of the fourth session of the 13th National People’s Congress (NPC) on March 11, 2021 in Beijing, China.
VCG | Visual China Group | Getty Images
BEIJING – President of the People’s Republic of China Xi Jinping In early December, in his speech during a speech in early December, the Chinese Communist Party said that the bi-monthly magazine of the Communist Party of China is published every Wednesday.
This is a sign that regulation is not yet coming off, although it does not cover a little new and Economists expect the worst of Beijing’s repression to end.
China needs to “accelerate the pace of legislation in the digital economy, Internet finance, artificial intelligence, big data, cloud computing, etc.,” Xi said, according to a Chinese translation of the CNBC text.
He also called for more laws to ensure national security and called for more use of the law for “international struggle” – including countering foreign sanctions.
But much of Xi’s speech, delivered on December 6 at the Central Politburo of China’s top leaders, focused on broad theoretical points, such as not blindly following Western systems.
Last year, a number of new rules aimed at combating the alleged monopolistic practices of technology companies, data security and other issues shocked global investors. Rules solve long-standing problemsbut their sharpness disrupted the business and caused mass layoffs.
“We expect changes in regulations, especially in technology, to continue,” said Matthew Beckin, China’s director of the Economist corporate network. She noted that Beijing has published construction plans “Chinese Socialist Rule of Law” until 2035.
“I think the use of regulation as a tool for shaping the economy and society that China wants is not over,” Beckin said.
She noted that legislation in the West tends to focus on the relationship between individuals and the state, while in China the emphasis has been on commercial law – the relationship between the private sector and the state.
Xi’s speech, delivered more than two months ago but published this week, is just one of many official statements offered to the public in a country where information is tightly controlled.
Reading between the lines a similar official comment, last week economists concluded that The worst of China’s regulatory repression is over as Beijing focuses more on growth. But they said it did not mean repealing or ending the new rules.
“Xi pays a lot of attention to the use of the law,” said Chen Long, a partner at consulting firm Plenum in Beijing. “The Chinese government uses a lot of rules to govern. Since 10 years ago, it has wanted to make a lot of regulations in the law, so you have a legal basis for that policy.”
Chen expects fewer surprises in technical regulation this year than last year.
But he stressed that it is important not to take into account Xi’s speech. “This speech is not something new,” he said, “but a summary of what they did.”
Even as China uses the law to counter foreign sanctions, Beijing has done so such legislation was passed in June. If the Chinese government believes that individuals or entities are involved in discriminatory practices against Chinese citizens or organizations, the law allows Beijing to freeze assets or deny entry, among other measures.
“China wants to use the law to protect its interests vis-à-vis other countries, including both adding domestic power and having a voice in shaping international law to better serve its interests – which I don’t think is unusual for a nation , ”said Jeremy Daum, a senior fellow at the Paul Tsai Chinese Center at Yale Law School.
China’s repression of technology is due to the fact that the industry has grown rapidly beyond existing rules. This is the balance that governments around the world are trying to achieve when they consider how to regulate cryptocurrencies, data and other new technologies.
At the same time, on the political front, the Chinese authorities have promoted their efforts to eradicate poverty and middle-class growth – moving away from the priority of economic growth at all costs.
Most of the shifts came shortly after China’s ruling Communist Party celebrated its 100th anniversary on July 1. The party is expected to give Xi an unprecedented third term as president this fall.