News Analysis |
One of the major argument always posed by those who scorn communism as a system of government is that Communism exterminates human creativity. Since in a principle communist state, whatever is to be produced is decided by the government, entrepreneurship yields little benefits, if not a punishment from the government for noncompliance. But with its revised model, China proved itself to be an exception. The tech industry in China grew substantially over the course of last decade or so which resulted in the likes of global e-commerce giant Ali Baba group.
For years Chinese companies have excelled in e-commerce, electronic gadgets, drones etc. without the government meddling in the affairs of private firms, but now the free ride seems to be ending. In the light of state’s “Made in China 2025” vision, which aims to see the country topping the charts for global manufacturers of high-tech equipment has led China to tighten its grip over the private, especially internet-based firms.
Like the other communist governments which existed higher in number than they are in the contemporary world, China always deemed the check on information as a prerequisite for continuation of One-party rule.
Internet, a tool for China to exert ‘law and order’
Internet, a tool for China to exert ‘law and order’. Internet, in the views of Chinese government previously, was a medium responsible to intrude in the state affairs.
Pony Ma, Tencent’s chief executive and a returning member of the Congress, offered suggestions for improving schools and health care. China has given the leverage to private firms to stretch forth their wings and has decided to pull the strings at a perfect time.
But then the same medium was maneuvered in a way to help achieve the government its objectives. For instance, WeChat, what could be generally called as Chinese WhatsApp, has been known for the conversation and data being ultimately analyzed by the government at the backend. The conversations from WeChat, an app widely used throughout the China, has been presented as admissible evidence in the court of law. To western folks it could be an invasion of privacy, but not in China. Whereas the data in WhatsApp is fully encrypted and cannot be read by any third party.
Read more: Australia bans Chinese app ‘WeChat’
Xi here to Stay
The ruling communist party of China, who holds an overwhelming majority in Chinese parliament, voted to lift the age limit for the head of the state from Chinese constitution. It implies that Chinese president Xi Jinping is set to hold the office for life, or for as long as he wants. The humongous size and population which China possess, it becomes a matter of extreme importance for the sitting government to oversee the economy doing equally good.
So far, President Xi has been up to the task. He has kept his focus on scientific and tech research as a premium medium to thrive the Chinese economy on, as among the factors of production it is the only thing that never depletes; knowledge. Government and tech-giants working together, strengthening their iron fists over the global market.
Read more: Will the Chinese boycott McDonald’s?
Government and tech-giants working together, strengthening their iron fists over the global market.
Due to its massive human resource which reduces the cost the labor, China emerged to be manufacturing giant of the world. But gradually it started to compete in the field which Americans have predominantly been good at, Information Technology. Now Chinese government has included the private firms such as Ali Baba in its mega plan of promoting innovation. In scientific research, tech giants have joined with government institutes to run labs in fields like quantum computing, deep learning, and human-computer interaction. Soon, Chinese citizens may even be able to use their accounts on Tencent’s and Alibaba’s apps as digital versions of their national ID cards.
Meet the interests of the Government, you shall reap sweet fruits!
China always deemed the check on information as a prerequisite for continuation of One-party rule. Internet, a tool for China to exert ‘law and order’. Internet, in the views of Chinese government previously, was a medium responsible to intrude in the state affairs.
In China, the incentive for private sector firms to comply and align themselves with the government’s thinking pattern result is several economic waivers and compensations. It is primarily the reason why that now the CEOs of tech companies like Tencent, Pony Ma has joined as a member of Chinese parliament. These private firms not only provide valuable insight to the government for its economic plans for technological expansion but have been known to funnel their hard earned money into the government initiatives as well.
Read more: Chinese company Tencent now more valuable than Facebook
For example, In December, Jack Ma, Alibaba’s executive chairman, announced that the company had started a $1.5 billion poverty relief fund. At a news conference before this year’s legislative session, Pony Ma, Tencent’s chief executive and a returning member of the Congress, offered suggestions for improving schools and health care.
China has given the leverage to private firms to stretch forth their wings and has decided to pull the strings at a perfect time. The reach of these globally known tech firms has reached beyond the regional stretches which has allowed the government to exploit their global influence to maximum effect. It would not be surprising if that was the plan nurtured by the Chinese government all along.