- The five-year plan announced on Wednesday shows that China’s crackdown on technology may continue.
- New laws will be drafted in other areas, including national security, monopoly and education.
- China’s targeting of various industries frightened investors and hit the stock market.
- More stories go www.BusinessInsider.co.za.
China released Five-Year Blueprint On Wednesday, this showed that its blow to the technology industry will not fade anytime soon. It also hinted that new laws will be drafted for other key industries.
The authorities stated that they will actively work on national security, technological innovation, monopoly and education legislation, indicating that the recent crackdown on data privacy and anti-monopoly issues will continue.
The State Council of China and the Central Committee of the Communist Party of China stated in the document that artificial intelligence, big data, public health, Internet finance, cloud computing and foreign-related laws will also be strengthened.
The announcement indicated that after the global spread of the coronavirus, China is working hard to reshape its country. Appeared in Wuhan December 2019.
“The people’s increasing demand for a better life has put forward new and higher requirements for the construction of a government under the rule of law,” the relevant department said. “We must base ourselves on the overall situation, focus on the long-term, make up for shortcomings, forge ahead, and promote the construction of a government under the rule of law in the new era to a new level.”
China, the world once biggest Bitcoin mining center also cracked down on cryptocurrency, driving business out of the country U.S And the rest of Asia. The country’s major banks have been banned from providing encryption services.
The announcement on Wednesday is an update to the plan that ended earlier in 2020.
A series of regulatory measures in Beijing shocked investors and added Risks facing Chinese technology stocksAuthorities crack down on Jack Ma’s Alibaba and Ant Group Antitrust investigation At the end of last year, recently Mandatory cyber security review For Didi’s debut on the New York Stock Exchange and other overseas listings.
Wedbush analyst Dan Ives (Dan Ives) said that investors are struggling to cope with the upcoming prospect of more regulation in China. Ives said that the uncertain outlook has been the main factor hindering the holding of Chinese technology companies, which may be part of the reason for their underperformance so far this year.
In addition, the China Banking and Insurance Regulatory Commission Appointed insurance company To curb inappropriate marketing and pricing practices, and protect user privacy. The company was warned that if they did not comply with the regulations, they would face “severe punishment.”
