Beijing is seeking closer integration between tech giants and the real economy, channeling their resources toward the development of technologies that are critical to the country's growth and global competitiveness.
China escalated pressure on its technology sector with a sweeping critique of platform companies' business practices, demanding they serve national industrial goals after President Xi Jinping outlined a disciplined approach to developing strategic technologies vital to geopolitical competition.
In a commentary published Sunday in the Communist Party's theoretical journal Qiushi, Beijing criticized major platforms for algorithmic discrimination, predatory pricing and escalating fees that squeeze merchants and gig workers. The critique appeared alongside Xi's previously undisclosed January speech outlining China's industrial priorities through 2030 — a pairing that underscores Beijing's two-track strategy of tightening control over existing digital businesses while mobilizing resources for emerging sectors.
"Some platform companies are obsessed with expanding scale and traffic, while neglecting technological innovation, service-quality improvements, data security, privacy protection and workers' rights," the commentary said. Authorities also argued that certain platforms had exploited their market position to engage in unfair competition, while some even mounted "fierce resistance to law enforcement measures,"
it said.
Instead, Beijing wants digital platforms to step up investment in artificial intelligence, cloud computing, blockchain, operating systems and semiconductors. The message reflects a broader effort to shift companies' focus away from refining commercial algorithms — such as those used for food delivery or e-commerce — toward the development of foundational technologies.
According to Chinese policymakers, innovation is the primary driver of the platform economy's long-term development. Leading internet companies possess significant technological, financial and human-capital resources, giving them the capacity to play a larger role in developing critical technologies and strengthening China's national innovation capabilities.
At the same time, Beijing intends to overhaul its regulatory framework for digital platforms, acknowledging that many existing problems stem from shortcomings in current oversight mechanisms. Authorities called for stronger legal tools to combat data abuse, deepfakes and privacy violations, while pledging tougher enforcement against antitrust violations and unfair competition. Regulators also signaled tighter scrutiny of algorithms, data flows and platform governance rules.
Beyond stricter oversight, policymakers expect platform companies to provide greater support for small businesses, make more effective use of accumulated data resources to improve economic efficiency and help modernize traditional industries through industrial digital platforms.
Six strategic sectors
In his January speech, Xi identified six sectors that will form the core of China's industrial strategy through 2030: quantum technologies, biomanufacturing, hydrogen and fusion energy, brain-computer interfaces, embodied artificial intelligence — including humanoid robotics — and sixth-generation wireless networks, or 6G.
While these sectors were already mentioned in the communiqué of the Communist Party's fourth plenum last year, the newly published speech offers the first detailed explanation of the rationale behind their selection and the mechanisms for their development. Xi described them as the "main direction of attack" for future industries under the current five-year plan.
According to a separate Qiushi editorial, the selection reflects a combination of three factors: global technological trends, national strategic requirements and the dynamics of industrial transformation.
The technologies are at markedly different stages of development. Fusion energy, 6G networks and brain-computer interfaces remain at an early stage. Hydrogen energy, quantum computing and humanoid robotics are experiencing rapid growth, while quantum communications and next-generation biopharmaceutical technologies are entering a phase of large-scale deployment.
Taken together, the sectors span manufacturing, information technology, energy and healthcare — industries that Beijing views as central to developing so-called "new quality productive forces," strengthening energy security and advancing the country's green transition.
Chinese policymakers also regard these technologies as critical to national security and China's future global leadership. Authorities expect them to give rise to industrial clusters worth hundreds of billions and even trillions of yuan, while generating technological spillovers that help modernize traditional industries.
Xi separately stressed the importance of coordination between traditional, emerging and future sectors of the economy. A strong industrial base, he argued, remains the foundation for sustainable growth in new industries, while attempts to develop individual sectors in isolation are unlikely to succeed.
"If we don't grasp technology trends and don't understand emerging fields, operating in a state of 'blind men groping an elephant' won't work,"
Xi told senior officials, demanding they strengthen technical expertise to make sound decisions on frontier tech.
Warning against waste
Xi also warned local governments against blindly following technology trends and overspending on projects in future industries, urging regions to take account of their own competitive advantages and resource endowments. Beijing fears that excessive enthusiasm at the local level could result in duplicated projects and inefficient capital allocation, undermining the long-term objectives of industrial policy.
The Chinese leader assigned a central role in developing future industries to state-owned enterprises, describing them as the country's "national team," while also calling for stronger support for innovative small and medium-sized enterprises, niche manufacturing champions and unicorn startups.
Xi further emphasized the need to balance technological development with security considerations, including stronger regulatory frameworks, risk-monitoring systems and controls governing the use of data
Source: MLex.
