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Beijing’s promise of policy support for China’s Big Tech companies ‘too abstract’ as more action is needed, analysts say
- Concrete policies, instead of ‘abstract vocal support’ from China’s leadership, are needed by Big Tech firms to grow, analysts say
- The Central Economic Work Conference’s show of support comes months after the State Council pledged policies to help the country’s digital economy
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Ben Jiangin Beijing
China’s Big Tech companies are expected to receive much-needed policy relief to help bolster the country’s economic recovery efforts, according to analysts, after Beijing last week pledged its strongest support for the sector’s growth.
This positive development emerged at the conclusion on Friday of the two-day Central Economic Work Conference (CEWC) in Beijing, where the government leadership headed by President Xi Jinping said China’s “platform enterprises” – referring to large internet services operators like Alibaba Group Holding and Tencent Holdings – will be supported to “fully display their capabilities” in bolstering economic growth, job creation and international competition. Alibaba owns the South China Morning Post.
The closed-door meeting, convened annually by the Central Committee of the Chinese Communist Party, sets the tone for the roll-out of new policy guidelines in the world’s second-largest economy.
“I expect these platform technology companies to get some breathing room for growth,” said Iris Pang, chief economist for Great China at Dutch banking group ING.
The show of support comes months after the State Council, China’s cabinet, vowed to strengthen the country’s digital economy through major new policy commitments, signalling Beijing’s response to the Biden administration’s recent moves imposing further US restrictions against the mainland’s tech industry.
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