Xi Jinping's Oct 2021 speech on China's digital economy
Xi Jinping's Oct 2021 speech on China's digital economy
"Stronger, Better, and Bigger"
Qiushi/Seeking Truth, the Party’s flagship biweekly magazine, on January 16, 2022, published the 习近平总书记2021年10月18日在十九届中央政治局第三十四次集体学习时讲话的主要部分 major part of General Secretary Xi Jinping’s speech at the 34th collective study session of the 19th Central Committee’s Political Bureau on October 18, 2021.
It is perhaps the most comprehensive speech on the digital economy by Xi in public view so far, and Pekingnology offers a full translation today.
Before we start, here are some earlier Pekingnology newsletters on tech that may be useful to you.
Former central bank governor Zhou Xiaochuan explains how digitalization, and in particular Fintech and Big Tech firms challenge China’s small banks.
A very detailed November 18, 2021 presentation of findings by a Peking University task force on China’s platform economy, the Chinese term for the "new economic form with internet platforms as the base and data as the driving force and supported by a new generation of information technology and internet infrastructure”.
The 关于加强交通运输新业态从业人员权益保障工作的意见 Opinions on Strengthening the Protection of the Rights and Interests of Workers in New Forms of Transportation Business by eight Chinese ministries led by the Ministry of Transportation published on November 30, 2021.
Overcoming the Baumol Effect with Digital Technology by Jiang Xiaojuan, currently Dean of the School of Public Policy and Management, Tsinghua University, and previously Deputy Secretary-General of the State Council/China’s government cabinet, published in October 2021.
The 关于维护新就业形态劳动者劳动保障权益的指导意见 Guidelines on protecting the rights and interests of workers in new forms of employment by eight central-level bodies led by the Ministry of Human Resources and Social Security addressing gig workers’ benefits, in August 2021.
Former central bank governor Zhou Xiaochuan’s explanation of China’s Digital Currency & Electronic Payment (DC/EP) at the 2021 Tsinghua PBCSF Global Finance Forum in May.
Please kindly note this newsletter has no authorization to represent anybody else. If you happen to find any views, they belong solely to your Pekingnologist. So are any inaccuracies and errors.
To help make Pekingnology sustainable, please consider buy me a coffee or pay me via Paypal.
Continue to grow our country’s digital economy stronger, better, and bigger
by Xi Jinping
Technology innovation in the Internet, big data, cloud computing, artificial intelligence, and blockchain accelerated in recent years and has become increasingly integrated into all aspects of economic and social development. Countries around the globe are competing to formulate their own digital development strategies and incentive measures. The speed of development, coverage, and influence of the digital economy is unprecedented. It is becoming a key force in restructuring global production factors and resources, reshaping the global economic structure, and altering the global competitive landscape.
I have always put emphasis on the development of digital technology and the digital economy. I proposed the building of “Digital Fujian” when I was working in Fujian in 2000, and proposed the building of “Digital Zhejiang” when I was working in Zhejiang in 2003.
Since the 18th National Congress of the Communist Party of China, I have underlined developing the digital economy many times. I emphasized supporting the digital economy to become bigger and stronger and expand the space for economic development at the 36th collective study session of the Political Bureau of the 18th CPC Central Committee in 2016. In the same year, I proposed boosting the digital economy at the G20 Hangzhou Summit, receiving universal endorsement by leaders and entrepreneurs from all countries. At the second collective study session of the Political Bureau of the 19th CPC Central Committee in 2017, I emphasized speeding up building a digital China, developing a digital economy with data as a key component, and promoting the integrated development of the real economy and digital economy.
At the Central Economic Work Conference in 2018, I stressed accelerating the construction of a new type of infrastructure such as 5G, artificial intelligence, and industrial Internet. In my congratulatory letter to the World Internet Conference Wuzhen Summit in 2021, I emphasized stimulating the vitality of the digital economy, improving the efficiency and capabilities of a digital government, optimizing the digital social environment, constructing a digital cooperation pattern, strengthening the shield of digital security, and enabling digital civilization to benefit people from all countries.
The CPC Central Committee has attached great importance to the development of the digital economy since the 18th CPC National Congress and upgraded it to a national strategy.
The Fifth Plenary Session of the 18th CPC Central Committee put forward implementing the national cyber development strategy and national big data strategy, expanding the space of the Internet economy, promoting the Internet’s integrated development with the economy and society, and supporting various Internet-based innovations.
The 19th CPC National Congress put forward promoting the deep integration of the Internet, big data, artificial intelligence, and the real economy to build a digital China and a smart society.
The Fifth Plenary Session of the 19th CPC Central Committee put forward developing the digital economy, advancing the digital industry and transforming the industry with digital technologies, promoting the deep integration of the digital economy and the real economy, and constructing an internationally competitive digital industry cluster.
We have promulgated the《网络强国战略实施纲要》Outline of the Implementation of the National Cyber Development Strategy and the 《数字经济发展战略纲要》Outline of the Strategy for the Development of the Digital Economy, which stipulates national plans to promote the development of the digital economy.
In recent years, our country has seen rapid development in the digital economy and made significant achievements. According to the data from the 2021 Global Digital Economy Conference, our country has ranked second in the world in terms of the scale of the digital economy for many years consequtively. Digital technology and the digital economy have played an important role in supporting the fight against the COVID-19 pandemic and resuming production and life.
At the same time, we must note that compared with countries big and strong in the digital economy, China’s digital economy is big but not strong, growing rapidly but not exceptionally. It should also be noted that some unhealthy and disorderly signals and trends have occurred in the rapid development of our country’s digital economy. These problems not only undermine the healthy development of the digital economy but also contravene laws and regulations and constitute a threat to the national economic and financial security. These problems must be resolutely rectified and put under governance.
Judged comprehensively, it is of great significance to develop the digital economy and it is a strategic choice for us to seize new opportunities presented by the fresh round of technological and industrial revolution.
Firstly, the healthy development of the digital economy aids the creation of a new development paradigm that aims to enhance the driving force of economic development and smoothen economic circulation. Digital technology and economy can facilitate the flow of various resources and production factors, the integration of market entities, the restructure of organizational models, so that the cross-sector expansion can be achieved, the chronological and spatial limits can be broken, the industrial chain can be expanded, and an unimpeded domestic and external economic circulations can be ensured.
Secondly, the healthy development of the digital economy helps the construction of a modern economic system. As a new factor of production, data has a significant impact on transforming traditional production methods. The digital economy has strong features of innovation, market penetration, and a wide coverage rate. It is a new breaking point of economic growth and a fulcrum for upgrading traditional industries, and can become a key engine for building a modern economic system.
Thirdly, the healthy development of the digital economy helps the country gain a new competitive edge. Today, digital technology and the digital economy provide early opportunities for technological revolution and industrial transformation around the world and are prime areas of the new round of international competition. We must take the initiative and seize the opportunity to climb to the vantage point for future development.
Looking ahead to the future, we must coordinate the big picture of the great rejuvenation of the Chinese nation with the changes unseen in a century, coordinate both domestic and international situations as well as development and security, capitalize on the advantages of massive data and rich application scenarios, promote the deep integration of digital technology and the real economy, empower the transformation and upgrading of traditional industries, spawn new industries, new business forms, and new models, and support China’s digital economy to become stronger, better, and bigger.
First, achieve breakthroughs in core technologies in key fields. We must ensure independent innovation of digital core technologies in key fields, give full play to our country’s advantages in the socialist system, the 新型举国体制 new type of national system with concentrated efforts and resources for important events or projects, and a super-large-scale market, improve the basic research and development capabilities in digital technology, secure a decisive victory in core technologies in key fields, build our country’s independence and strength in science and technology as soon as possible, and make sure that the right to independently develop the digital economy is firmly in our own hands.
Second, speed up the construction of new-type infrastructure. We must make the strategic layout and accelerate the construction of intelligent comprehensive digital information infrastructure that is high-speed, ubiquitous, intelligent, agile, low-carbon, secure, and controllable and features space-earth integration network and the cloud-network integration, starting with 5G network, national integrated data center system [Chinese], and national industrial Internet. It will open up the information “artery” for economic and social development. It is necessary to nurture globally influential large-scale software companies and comprehensively promote the industrialization and large-scale application of software, focus on breakthroughs in key software, promote the software sector to become bigger and stronger and improve innovation and supply capabilities in key software technology.
Third, promote the integrated development of the digital economy and the real economy. In light of the trend of digitalization, Internetization, and intelligentization, it is necessary to promote digitization in manufacturing, service, agriculture, and other sectors, employ new Internet technologies to transform traditional sectors comprehensively, improve total factor productivity, and give full play to the role of digital technology in maximizing economic development. It is necessary to apply the Internet, big data, and artificial intelligence deeply to industries, and move faster to cultivate a group of enterprises that produce new, distinctive, specialized, and sophisticated products, as well as “champion enterprises” in some subsectors in the manufacturing sector. Of course, it is necessary to be pragmatic and operate according to the reality of the enterprises, rather than digitize for the sake of digitization.
Fourth, promote the development of digital sectors in key areas. It is necessary to focus on strategic and frontier fields as well as vantage points. Based on major technological breakthroughs and major development needs, it is necessary to enhance the competitiveness of key links in the industrial chain, improve the supply chain system in key industries, and speed up product and service iteration. It is necessary to focus on key areas such as integrated circuits, new displays, communication equipment, and intelligent hardware, consolidate strengths while addressing weaknesses, cultivate a group of globally competitive large enterprises and business ecosystem-leading enterprises that have the capability to control the ecosystem of the sector they are in, and build an independent and controllable industrial ecosystem. It is necessary to promote cluster development and build world-class digital industrial clusters.
Fifth, regulate the development of the digital economy. To promote the healthy development of the digital economy, it is necessary to stress fostering development and supervisory regulation at the same time - promote development in the context of supervision, and supervise in the process of development. It is necessary to improve the market access rules, fair competition review rules, and fair competition supervision rules, establish an all-around, multi-level, and comprehensive regulatory system to realize supervision throughout the industry chain (of the digital economy) in all aspects, close supervision loopholes, and improve efficiency. It is necessary to put right and standardize conduct and practices that harm the public interests and impede fair competition in the development process, prevent monopoly by platform companies and disorderly expansion of capital, and investigate and punish acts of monopoly and unfair competition in accordance with the law. It is necessary to protect the legitimate rights and interests of workers in the platform companies and consumers. It is necessary to strengthen tax supervision and tax inspection.
Sixth, improve the governance system over the digital economy. It is necessary to improve laws and regulations as well as policy and institutions and modernize our country’s digital economy governance system and capabilities. It is necessary to define the responsibilities of the competent departments and regulatory bodies in more detail and ensure the sharing of work and collaboration. It is necessary to improve supervision techniques and means, as well as to incorporate supervision and governance in the full process of innovation, production, operation, and investment. It is necessary to clarify the responsibilities and obligations of platform enterprises as the first line of responsibility and put in place a sector-wide self-discipline mechanism. Social supervision, media supervision, and public supervision must be combined. We should improve the national security systems and institutions, focus on strengthening the early warning, prevention, and control mechanism for digital economy security risks as well as capacity building, and ensure core technologies, important sectors, key facilities, strategic resources, significant technologies, and leading enterprises are secure and controllable. It is also necessary to strengthen theoretical research into the development of the digital economy.
Seventh, actively participate in international cooperation in the digital economy. We should make close observations and act proactively, enter into negotiations over the digital economy in international organizations, foster bilateral and multilateral cooperation in digital governance, improve the multilateral digital economy governance mechanism, and put forward China’s blueprint and make China’s voice heard in a timely manner.
The digital economy concerns the big picture of national development. We must make good top-level planning and construct systems and institutions for the digital economy development in light of our country’s development needs and possibilities. It is necessary to increase efforts to assess and judge the situation, as well as seize opportunities and take initiative. Leading officials at all levels must enhance thinking capability in the digital economy, sharpen their ability to develop the digital economy, raise awareness in security, and enable the digital economy to better serve and integrate into the new paradigm of development. It is necessary to improve the digital literacy and skills of the general public and consolidate the social base for developing our country’s digital economy.
※这是习近平总书记2021年10月18日在十九届中央政治局第三十四次集体学习时讲话的主要部分。
※This is the major part of General Secretary Xi Jinping’s speech at the 34th collective study session of the 19th Central Committee’s Political Bureau on October 18, 2021.
***
To help make Pekingnology sustainable, please consider buy me a coffee or pay me via Paypal.
Again, some earlier Pekingnology newsletters on tech that may be useful to you.
Former central bank governor Zhou Xiaochuan explains how digitalization, and in particular Fintech and Big Tech firms challenge China’s small banks.
A very detailed November 18, 2021 presentation of findings by a Peking University task force on China’s platform economy.
The 关于加强交通运输新业态从业人员权益保障工作的意见 Opinions on Strengthening the Protection of the Rights and Interests of Workers in New Forms of Transportation Business by eight Chinese ministries led by the Ministry of Transportation published on November 30, 2021.
Overcoming the Baumol Effect with Digital Technology by Jiang Xiaojuan, currently Dean of the School of Public Policy and Management, Tsinghua University, and previously Deputy Secretary-General of the State Council/China’s government cabinet, published in October 2021.
The 关于维护新就业形态劳动者劳动保障权益的指导意见 Guidelines on protecting the rights and interests of workers in new forms of employment by eight central-level bodies led by the Ministry of Human Resources and Social Security addressing gig workers’ benefits, in August 2021.
Former central bank governor Zhou Xiaochuan’s explanation of China’s Digital Currency & Electronic Payment (DC/EP) at the 2021 Tsinghua PBCSF Global Finance Forum in May.