China is betting on technology companies in the face of slowing economic growth.
China's latest guidance to promote development of the private sector will give full play to the dynamic role of the country's internet and tech firms in making innovations and creating new jobs, which will further stimulate new growth drivers amid rising economic uncertainties, according to company executives and industry experts.
The comments were made as the Communist Party of China Central Committee and the State Council, the country's Cabinet, released a document in July detailing a total of 31 measures to drive the development of private enterprises, which include breaking down market barriers and protecting the rights of entrepreneurs abroad.
The guidance emphasized that more efforts will be made to support platform companies to develop in the direction of openness, innovation and empowerment, and to support platform companies in creating jobs, expanding consumption and engaging in international competition.
Pony Ma, chairman and CEO of leading tech company Tencent Holdings, said:
"China's platform economy has entered a brand-new development period, with the traditional business development model being transformed and renewed. The value of platform companies in driving (consumption) demand, innovative development, employment, entrepreneurship and public services is waiting to be fully tapped into. It sets clear the goal of platform enterprises to be open and innovative as well as enables future development."
Ma added that Tencent will develop in line with these directions to be a connector, a toolbox and an assistant, and promote its consumer internet business to boost domestic demand, enhance its industrial internet business to help drive innovative development of the country's modernization, and beef up the competitiveness of the company's overseas business.
The private sector has been a driver of the nation's economic growth and innovative development. Private firms contributed about 50 percent of the country's tax revenue, 60 percent of GDP, 70 percent of technological innovation and 80 percent of new jobs, said the Ministry of Industry and Information Technology.
Source: Ecns.cn
