Turbulent times for China's Big Tech is far from over

China's tumultuous internet industry braced itself for another roller coaster ride when the Ministry of Industry and Information Technology (MIIT) announced a special rectification plan for the internet industry, targeting four aspects, eight problems and 22 typical violations in July this year. Though it is based on last year's APP rectification plan focused on APP infringements on users' rights and interests, it is more comprehensive. After introducing AI Algorithm-based regulations to rein in the Big Tech, Beijing is ready to set industry-wide blockchain standards. Last month, MIIT formed the National Technical Committee for Blockchain and Distributed Ledger Technology Standardisation, also known as the Blockchain Standards Committee, as the authority to standardise blockchains in China. During the 18th collective study session of the Politburo, Xi Jinping emphasised the use of blockchain as an essential breakthrough for independent innovation of core technologies and the need to accelerate the development of blockchain technology. During the inaugural meeting of the Blockchain Standards Committee, Wang Zhijun, Chairman of the Blockchain Standards Committee and Deputy Minister of the Ministry of Industry and Information Technology, said, “the establishment of the Blockchain Standardisation Committee is a key measure to implement the spirit of General Secretary Jinping's important speech.” The committee also aims to shape the international discourse on blockchain technology.

The establishment of the Blockchain Standardisation Committee is a key measure to implement the spirit of General Secretary Jinping's important speech.

Last month, the State Administration for Market Regulation (SAMR) issued for public comment two draft guidelines on classification of internet platforms and implementation of responsibilities of internet platforms. SAMR has proposed to classify internet platforms into six categories according to industry and size, such as online sales, life service, social entertainment, information, financial services, computational applications and super, large, and medium-and-small respectively. Super-platforms are defined as having more than 500 million annual active users, diverse business profiles, and a market value of more than RMB 1 trillion (US $156 billion). Super platforms are also expected to shoulder more responsibilities in terms of fair competition, data security, risk management, and innovation. Alibaba, Tencent, ByteDance, and Meituan fall in the category of super-platform as per the proposed classification. Tencent, Alibaba, and ByteDance, along with Baidu and NetEase have filed trademark applications for metaverse-related initiatives over the last few months. The new regulations to promote “balanced development of platforms” might complicate things for these super platforms, which have already been facing the heat of authorities since the onset of the tech crackdown.

A draft amendment of the law, suggesting to increase the penalties exorbitantly, was submitted to the Standing Committee of the National People's Congress.

China has been using various measures to rein in tech companies, including cybersecurity laws and antitrust legislation. Alibaba group and Meituan were fined heavily under the Anti-Monopoly Law. However, some believed the existing laws did not have enough deterrent effect. Now China is amending its Anti-Monopoly Law for the first time in 13 years to enrich the anti-monopoly regulatory force. Last month, c Last month, the only major US-owned social networking site LinkedIn announced to shut down its China operations because of a “significantly more challenging operating environment and greater compliance requirements.” Later on, Yahoo announced to leave China on the day the Personal Information Protection Law (PIPL) came into effect because of China's “increasingly challenging business and legal environment”. While foreign tech giants can somehow bear the loss of a large market, home-grown Chinese tech companies find themselves in a predicament when greater state control looms large.

• Cyber Security
• Cyber and Technology
• China
• Anti-Monopoly Law
• Big Tech
• cybersecurity laws
• MIIT
• PIPL
• SAMR
• Xi Jinping

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