China vows to continue its crackdown on industry monopolies

People walk past the Central Business District (CBD) in Beijing
FILE PHOTO: People walk past the Central Business District (CBD) in Beijing, China January 16, 2022. Picture taken January 16, 2022. REUTERS/Tingshu Wang

March 5, 2022

BEIJING (Reuters) – China will continue its crackdown on monopolies to ensure fair competition, Premier Li Keqiang said in a report released ahead of the start of the annual session of parliament on Saturday.

Li also singled out the integrated circuits and artificial intelligence industries as priority areas for the government to build up domestic capabilities.

Li said the government, whose recent crackdowns on industries from e-commerce to private education has roiled global markets, would continue to improve “regulatory rules.”

“We will further the implementation of policies to ensure fair competition and take stronger action against monopolies and unfair competition to ensure a well-ordered and fair market environment,” he said, according to the report.

“We will act quickly to improve regulatory rules for key industries, emerging sectors, and sectors with foreign involvement and introduce new measures to make regulation more targeted and more effective.”

In supportive measures, the government said it would raise the tax deduction coverage for small and medium science and tech enterprises from 75% to 100%, and support more foreign investment in medium- and high-end manufacturing and R&D.

The work report also said the government would push the large-scale rollout of 5G networks, “smart cities and digital villages”.

“We will improve the governance of the digital economy and unleash the potential of data as a factor of production, to further stimulate economic development and enrich people’s lives,” said Li.

(Reporting by Yingzhi Yang, Eduardo Bapitsta, Sophie Yu and Brenda Goh, Editing by Christian Schmollinger and Jane Wardell)

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