China’s tech crackdown, which wiped $1.1 trillion off the valuation of its Big Tech firms, is over. Authorities are now courting tech giants to invest in the country’s struggling economy.
At least five significant deals have been struck to foster growth in the “platform economy.” Beijing-based Qihoo 360 has signed an agreement with the government of Hangzhou to strengthen cybersecurity, while gaming giant NetEase forged an AI and esports partnership with the same city. Others include e-commerce, gaming, and social media.
Top government officials are also extending pledges of assistance to major players in the tech sector. Beijing’s Chinese Communist Party chief, Yin Li, met with e-commerce giant JD.com, consumer giant Xiaomi, and Kuaishou, a notable short-video competitor to ByteDance, expressing support for the consumer tech sector.
The Chinese government’s sudden change of heart comes as the country’s economy struggles to recover from the COVID-19 pandemic. Manufacturing activity has contracted for four straight months, and there are signs that deflation may be on the horizon.
The sources for this piece include an article in BusinessInsider.