Big Tech set for starring role at Beijing’s ‘two sessions’ political gala amid regulatory heat and US tech war
- The tighter regulatory environment from Beijing has fanned speculation over whether Big Tech’s best days are over, after decades of rapid growth with less oversight than traditional industries
- Analysts are divided on whether being linked to the Communist Party will affect the global ambitions of Chinese tech companies amid ongoing US-China tensions
Tech entrepreneurs at China’s biggest annual political gala next week will be under pressure on two fronts as Beijing pushes its national strategy of technology independence while ratcheting up regulatory scrutiny of their business operations.
This year’s meetings, informally known as the “two sessions”, carry even greater importance because they not only kick off the nation’s latest five-year plan, but commemorate the centenary of the Chinese Communist Party too. The event will also be the first gathering of the country’s tech elite since China’s antitrust regulators began to investigate technology conglomerates for their market behaviour last November. The spate of investigations, including financial penalties and reprimands, have put everyone on notice.
The tighter regulatory environment from Beijing has fanned speculation over whether Big Tech’s best days are over, after decades of being able to rapidly grow their businesses with less oversight than traditional industries.
“Tech representatives will likely put their heads down and toe the [Communist] Party line at this year’s gathering ,” said Xiaomeng Lu, a senior analyst at Eurasia Group. “Chinese entrepreneurs will focus on showing support to the government’s agenda and put their loyalty to the party on display”