China's No.2 gives boost shot to Big Tech

Li QIang sends the loudest, strongest endorsement from the Chinese govt to Internet companies so far.

The “platform economy,” a synonym for big tech companies in China, gets a booster shot from the very top of the government on Wednesday, July 12.

Li Qiang, China’s Premier and No.2 official in the Communist Party of China, meets representatives from leading internet companies and sings music to the ears of the trillion-dollar industry, a few days after China ends its “rectification” of Ant Group and Tencent with a heavy fine.

China’s top economic planner on Wednesday also endorsed projects by 10 leading internet giants, including Alibaba, Tencent, and Meituan.

Readout via Xinhua

李强主持召开平台企业座谈会

Li Qiang presided over a symposium with platform enterprises

On the afternoon of July 12th, Li Qiang, Premier of the State Council and member of the Standing Committee of the Political Bureau of the Communist Party of China (CPC) Central Committee, chaired a symposium with representatives from platform enterprises to hear their opinions and suggestions on promoting a well-regulated, healthy, and sustainable platform economy.

During the symposium, representatives from companies such as Meituan, Xiaohongshu (Little Red Book), HAIZOL, Huolala, Alibaba Cloud, XCMG HANYUN, Douyin, and Zhaopin spoke successively. Pinduoduo, JD.com, Ouyeel, BOSS Zhipin, CASICloud, and COSMOPlat submitted written statements.

Li Qiang pointed out that the platform economy had emerged from the tides of time, provided new space for expanding demand, become a new engine for innovation and development, explored a new channel for employment and entrepreneurship, and offered new support for public services. The role of platform economy in the overall development is now increasingly prominent.

The platform economy has great potential on the new journey to build China into a modern socialist country in all respects, said Li. He hoped that platform enterprises would move forward with firm confidence, focus on capacity-building, and overcome the "growing pains". It is through these efforts that platform enterprises can realize their full potential in spearheading development, creating more jobs, and staying ahead in international competition. He said

Efforts should be made to promote continuous innovation breakthroughs, increase R&D investments in key areas such as fundamental technologies, and open up new tracks of development.

Efforts should be made to empower the real economy, optimize the development of consumer internet platforms to further stimulate domestic demand, and vigorously develop industrial internet platforms to foster collaboration in innovation among SMEs.

Platform enterprises should actively fulfill social responsibilities, including strengthening self-discipline, compliance, and creating a good ecosystem for platforms, and at the same time provide new job opportunities, and actively participating in social public welfare undertakings.

Platform enterprises must step up efforts to enhance international competitiveness, have the courage to compete on the international stage, and promote more Chinese products and services to go global.

Li Qiang also emphasized that governments at all levels must ensure fair competition, improve policies such as investment access and safety assessments for new technologies and businesses, establish a normalized, transparent, and predictable regulatory system, reduce compliance costs for enterprises, and promote the healthy development of the industry.

It is necessary to establish and improve regular communication mechanisms with platform enterprises, promptly understand their difficulties and demands, improve relevant policies and measures, and promote the compliant, healthy, and sustainable development of the platform economy. (Enditem)