In further signs of easing a crackdown on the technology sector, Chinese Vice-Premier Liu He on Wednesday (May 18) said the country’s Communist Party supports the development of the sector.
During a meeting of the Chinese People’s Political Consultative Conference (CPPCC), Liu met with the founders of search engine giant Baidu Inc Robin Li along with mobile security software maker Qihoo 360 Zhou Hongyi.
State broadcaster CCTV quoted him as saying that China will look to “properly manage” the relationship between the government and market and battle for “key core technologies” to be fought well.
Calling the meeting a “healthy development” for the tech sector, top officials said it will fuel hopes among investors that a damaging state crackdown may ease.
According to the official Xinhua news agency, China’s top political consultative body concluded it was “necessary to promote the healthy development of the platform economy”.
Highlighting the need to “complete its rectification”, they said there was a need to “respond to market concerns in a timely manner”.
As a result of the “supportive attitude”, shares of major Chinese tech companies such as JD.com and Alibaba rocketed in Hong Kong.
The Chinese Communist Party had imposed a sweeping crackdown on the tech sector under a “common prosperity” drive as it was widening the wealth gap that threatened the legitimacy of its rule.
The coronavirus pandemic has adversely affected China’s economy as well as supply chains across a range of sectors.
To achieve the growth target of 5.5 per cent this year and avoid the shrinking of its economy, the Chinese Communist Party needs to show support to its key sectors.
(With inputs from agencies)
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