Chinese President Xi Jinping called Monday for better regulation of the country’s $6 trillion technology sector as the digital economy develops.

In remarks before a study session on the digital economy of the Politburo of the Communist Party’s Central Committee, Xi vowed to correct practices that harm the interests of consumers and hinder fair competition, to prevent monopoly of platforms and disorderly capital expansion, to protect platform workers’ and consumers’ rights and interests and to strengthen tax supervision and inspection.

China’s digital economy grew to 39.2 trillion yuan ($6.07 trillion) in 2020, accounting for 38.6% of the country’s total GDP and up 9.7% year-on-year, according to an April white paper published by the state-backed China Academy of Information and Communications Technology. Beijing is speeding up efforts to expand the digital economy under the 14th Five-Year Plan, setting higher GDP contribution targets for digital industries.

Xi Jinping’s remarks on the sound development of China’s digital economy

Top financial regulator says China’s internet giants will fix more problems by year-end

China’s internet platforms need to do more to comply with regulators’ demands for changes ordered amid a wide-ranging campaign that started last year to tighten oversight of their financial businesses, the head of the country’s banking watchdog said.

“Financial regulators have raised more than a thousand questions during the regulatory moves targeting 14 internet platforms, and most of the questions have received responses (from those firms),” Guo Shuqing, chairman of the China Banking and Insurance Regulatory Commission (CBIRC), said. “About a half of the responses have led to actions, and more substantial progress will be made by the end of this year.”

Guo’s comments, in an interview (link in Chinese) with the official Xinhua News Agency published Tuesday, indicate that the internet and technology companies will announce more measures to restructure their financial services to address concerns that their activities could pose risks to the financial system and have also led to unfair competition.

Source: Caixin Global