The news: China reported a gross domestic product growth of 3% for 2022, its weakest annual performance in decades, prodding Beijing to reverse course on a number of earlier strategies, including its hold on tech, per Nikkei Asia.
China leans on Big Tech: Beijing has dialed back its aggressive hold on China’s Big Tech monoliths, per NASDAQ.
Beijing made moves last year to keep its most powerful tech giants in check by clamping down on AI algorithms that run its apps and internet services. The restrictions came after years of China’s laissez-faire approach to frenetic tech growth.
China’s government has reportedly taken a “controlling interest” in gaming giant Tencent, per Windows Central. Beijing’s penchant for regulation and censorship could affect how Western companies deal with Tencent.
Can China’s Big Tech turn things around? Beijing’s softening stance on China’s Big Tech companies is the beginning of a new agenda to kickstart its flagging economy.
The country fell behind last year partly due to factory closures and plummeting demand for Chinese-built tech products eating into the country’s bottom line.
What’s next? Expect Beijing to ease restrictions on China’s Big Tech monoliths while negotiating better deals and incentives for multinational technology companies that are pulling away.
This article originally appeared in Insider Intelligence's Connectivity & Tech Briefing—a daily recap of top stories reshaping the technology industry. Subscribe to have more hard-hitting takeaways delivered to your inbox daily.
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