Private firms to play greater role in developing hi-tech global leading players
November 28, 2017 Category Technology, Weekly
China’s private businesses – from internet service provider Tencent to carmaker Geely – are to play a greater role in the country’s top technology programs and backbone infrastructure projects as Beijing seeks to give fresh momentum to its “Made in China 2025” initiative, according to a joint policy directive by 16 Chinese ministries. In addition to adding energy to the government’s effort to comprehensively upgrade Chinese industry by tapping advanced technologies from artificial intelligence to robotics, the policy aims to “unleash private investment vitality”.
The assigning of a more prominent role to domestic private firms under the guidelines, led by the Ministry of Industry and Information Technology (MIIT), comes as the “Made in China 2025” plan raises concerns in the United States and European Union that China is putting pressure on foreign businesses to surrender their technology to continue operating there. Under the guidelines, private domestic companies are to set up government-supported, state-level laboratories as well as trying to develop “global leading players” in technology.
Private businesses also are to be encouraged to take part in core projects, opening up private investment in areas such as industrial control systems, industrial software, computer chips, sensors and cloud systems customized to fit specific industries and intelligent platforms. The government is also to allow more private players to enter the telecommunications sector, supporting private funding of technological research for both civil and military uses. A goal for China will be growing an army of “little giants” with specialities in one product or segment, the directive said.
Despite a lack of details, the guidelines send a strong signal that Beijing is ready to let its private sector share more and more of the state research budget. Moreover, the government is set to provide China’s private companies with help previously reserved for state-owned enterprises, the South China Morning Post reports.
“The private sector is the major power and vanguard for Made in China,” the government said in a statement.
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