The Chinese People’s Political Consultative Conference (CPPCC), the country’s top political advisory body, is having a special symposium on Tuesday to promote the digital economy, a step that could lead to supportive policies for Big Tech firms.

The top consultative committee headed by Wang Yang, the party’s No 4 ranking member, is conducting a “special session of consultation” on Tuesday to help the “sustainable and healthy” growth of the digital economy, according to a front-page article from the conference’s official newspaper CPPCC Daily.

While there were few details of the plan in the article, titled “Firmly seizing the spring of digital economic development”, the high-profile meeting is fresh evidence that Beijing is paring back the flurry of regulatory activity that has left China’s technology sector reeling, as it works out a specific plan to support tech companies’ role in future economic development.

Hopes are high that Beijing will ease its control of the digital economy after an 18-month crackdown amid a slowing economy. The Politburo meeting at the end of April revealed positive signs for internet companies, as officials voiced support for measures assisting the “healthy development” of the platform economy.

The article did not name any Big Tech firms.

Chinese tech stocks in Hong Kong shot up on Tuesday morning, with Alibaba, the owner of South China Morning Post, rising 5 per cent, while Tencent gained 3.6 per cent.

According to the report, a special research team led by Gao Yunlong, vice-chairman of the CPPCC, conducted research via video conference and an on-the-ground meeting in eastern Zhejiang province and Beijing to prepare for the meeting. A number of Chinese tech bosses are CPPCC members, including NetEase founder William Ding Lei, Xiaomi founder Lei Jun and Baidu chairman Robin Li.

The digital economy, by China’s definition, is broader than just internet platforms, but those platforms are treated as key parts of it. Industry digitalisation will help the real economy grow and it will need to be promoted, the CPPCC Daily article said.

New measures will allow Big Tech firms to play a role in upgrading China’s manufacturing, promoting the digitalisation of agriculture, and stimulating consumer spending, according to a front-page editorial in state-run Communist Party newspaper Economic Daily earlier this month.

by Tracy Qu in SCMP, May 17, 2022
https://www.scmp.com/tech/big-tech/article/3178017/chinas-top-political-advisory-body-hosts-special-symposium-help?module=lead_hero_story&pgtype=homepage