Thursday, 28 Aug 2025
America Age
  • Trending
  • World
  • Politics
  • Opinion
  • Business
    • Economy
    • Real Estate
    • Money
    • Crypto & NFTs
  • Tech
  • Lifestyle
    • Lifestyle
    • Food
    • Travel
    • Fashion / Beauty
    • Art & Books
    • Culture
  • Health
  • Sports
  • Entertainment
Font ResizerAa
America AgeAmerica Age
Search
  • Trending
  • World
  • Politics
  • Opinion
  • Business
    • Economy
    • Real Estate
    • Money
    • Crypto & NFTs
  • Tech
  • Lifestyle
    • Lifestyle
    • Food
    • Travel
    • Fashion / Beauty
    • Art & Books
    • Culture
  • Health
  • Sports
  • Entertainment
Have an existing account? Sign In
Follow US
© 2024 America Age. All Rights Reserved.
America Age > Blog > World > China’s pledge to give green lights to more technology deals points to an easing of restrictions on Big Tech, analysts say
World

China’s pledge to give green lights to more technology deals points to an easing of restrictions on Big Tech, analysts say

Enspirers | Editorial Board
Share
China’s pledge to give green lights to more technology deals points to an easing of restrictions on Big Tech, analysts say
SHARE

Beijing’s pledge to give “green lights” to technology deals will likely lead to more targeted measures to regulate Big Tech’s investment activities, as China’s top leadership seeks to have internet platforms play bigger roles in helping prop up a slowing economy, according to analysts.

During the Politburo meeting chaired by President Xi Jinping on Thursday, the Chinese leadership concluded that the government should give “green lights” to a batch of investment deals in the tech sector, sending a signal that Beijing will be less restrictive on the activities of the country’s Big Tech firms after imposing many “red lights” on deals in the sector since late 2020.

The meeting’s suggestions around “green lights” means that Beijing could “set the boundary” for investment and merger and acquisition (M&A) activities by internet and platform companies, said Bruce Pang, JLL’s Greater China head of research and chief economist.

Do you have questions about the biggest topics and trends from around the world? Get the answers with SCMP Knowledge, our new platform of curated content with explainers, FAQs, analyses and infographics brought to you by our award-winning team.

Beijing had earlier proposed the “red light” and “green light” mechanism for the country’s Big Tech firms as part of a campaign to curb “disorderly expansion of capital”. Pang said that the Chinese authorities had focused on “red lights” by setting up rules and drawing up bottom lines, but it has now shifted its stance amid rising unemployment and weak demand.

“Green lighting” investment cases by the country’s Big Tech firms will be a wise choice to help address economic problems and enable platforms to create jobs and boost consumption, he said.

Regulators could potentially put out several examples of successful M&A cases, and give approval for some internet companies to become licensed financial holding companies based on rules released in 2020, Pang said.

The “green light” statement also suggests that authorities may promulgate an “investment list” for platform companies, and give them clearer guidance on areas they can invest in, Fu Tianzi, an analyst at Everbright Securities, wrote in a research note.

“Green lighted” investment cases may likely occur in areas that help boost the development of the real economy, Fu wrote. That could include courier services and food delivery, which help create jobs, and those that help ensure the supply of goods or support disadvantaged groups.

Internet platform deals that help the digital transformation of companies and push for technological breakthroughs, and those that promote Chinese culture overseas, could also be among areas that receive green lights, Fu added.

In April, Beijing indicated that it wanted China’s internet firms to play a more important role in helping to bolster the faltering national economy, which has been battered by massive lockdowns and other stringent Covid-19-related measures.

Earlier this week, the Chinese government also established an interministerial meeting mechanism focused on the country’s digital economy, a small step towards aligning different regulators in supervising Chinese Big Tech companies.

The statement on green lights is also a response to growing calls for clearer guidelines from industry observers.

Wang Yiming, a former deputy at the Development Research Center of the State Council, suggested at an economic summit earlier this month that there should be plans for how the red and green light mechanism works so that the market has clear expectations.

Zhang Jianhua, director of the Research Center for Financial Development and Regtech at Tsinghua University, also made comments at a forum in April that there should soon be clear standards for capital green lights.

This article originally appeared in the South China Morning Post (SCMP), the most authoritative voice reporting on China and Asia for more than a century. For more SCMP stories, please explore the SCMP app or visit the SCMP’s Facebook and Twitter pages. Copyright © 2022 South China Morning Post Publishers Ltd. All rights reserved.

Copyright (c) 2022. South China Morning Post Publishers Ltd. All rights reserved.

Share This Article
Twitter Email Copy Link Print
Previous Article Iraqi protesters storm parliament in Baghdad, set up sit-in Iraqi protesters storm parliament in Baghdad, set up sit-in
Next Article Prince Harry Mocked By US Supreme Court Justice For His Comments On Roe V. Wade Decision Prince Harry Mocked By US Supreme Court Justice For His Comments On Roe V. Wade Decision

Your Trusted Source for Accurate and Timely Updates!

Our commitment to accuracy, impartiality, and delivering breaking news as it happens has earned us the trust of a vast audience. Stay ahead with real-time updates on the latest events, trends.
FacebookLike
TwitterFollow
InstagramFollow
LinkedInFollow
MediumFollow
QuoraFollow
- Advertisement -
Ad image

Popular Posts

Kavanaugh Gave Private Assurances on Roe v. Wade. Collins Says He ‘Misled’ Her.

WASHINGTON — During a two-hour meeting in her Senate office with the Supreme Court nominee…

By Enspirers | Editorial Board

Putin calls oil price cap ‘stupid,’ and says Russia is considering slashing oil production in response

Russia is considering slashing its oil production in response to the Western price cap, Vladimir…

By Enspirers | Editorial Board

Was North Korea’s New ICBM Test Faked? Not Entirely.

SEOUL — When North Korea conducted its most powerful intercontinental ballistic missile test to date​…

By Enspirers | Editorial Board

Opinion/Euer: Creating jobs, fighting climate change, stopping inflation

As you’ve probably heard by now, Rhode Islanders are looking at huge increases in their…

By Enspirers | Editorial Board

You Might Also Like

Porepunkah police capturing reside updates: unhealthy climate in Victoria to hamper manhunt as police affirm no sightings of suspect since Tuesday – newest information
World

Porepunkah police capturing reside updates: unhealthy climate in Victoria to hamper manhunt as police affirm no sightings of suspect since Tuesday – newest information

By Enspirers | Editorial Board
Australia politics stay: Usman Khawaja to debate playing adverts with Albanese; pollies gown up for Midwinter Ball
World

Australia politics stay: Usman Khawaja to debate playing adverts with Albanese; pollies gown up for Midwinter Ball

By Enspirers | Editorial Board
A 3rd of outpatients handled for wounds at MSF’s Gaza hospitals in 2024 had been youngsters, figures present
World

A 3rd of outpatients handled for wounds at MSF’s Gaza hospitals in 2024 had been youngsters, figures present

By Enspirers | Editorial Board
Australia accused of not appearing on 2023 warnings Iran was harassing and surveilling diaspora
World

Australia accused of not appearing on 2023 warnings Iran was harassing and surveilling diaspora

By Enspirers | Editorial Board
America Age
Facebook Twitter Youtube

About US


America Age: Your instant connection to breaking stories and live updates. Stay informed with our real-time coverage across politics, tech, entertainment, and more. Your reliable source for 24/7 news.

Company
  • About Us
  • Newsroom Policies & Standards
  • Diversity & Inclusion
  • Careers
  • Media & Community Relations
  • WP Creative Group
  • Accessibility Statement
Contact Us
  • Contact Us
  • Contact Customer Care
  • Advertise
  • Licensing & Syndication
  • Request a Correction
  • Contact the Newsroom
  • Send a News Tip
  • Report a Vulnerability
Terms of Use
  • Digital Products Terms of Sale
  • Terms of Service
  • Privacy Policy
  • Cookie Settings
  • Submissions & Discussion Policy
  • RSS Terms of Service
  • Ad Choices
© 2024 America Age. All Rights Reserved.
Welcome Back!

Sign in to your account

Lost your password?