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What will be the outcome of the conflict between politics and technology in China?

نتیجه نزاع بین سیاست و فناوری در چین چه خواهد شد؟

The ruling party in China intends to change the structure of companies and sectors active in the field of technology according to its wishes and direct them in a direction that will lead to further prosperity of the economy and increase the well-being of citizens; But is such a decision really right and constructive?

China has made great strides in technology in the last two decades, and Alibaba Electronics’ e-commerce business is twice that of Amazon. Tencent, which specializes in providing social networking services, mass media, e-commerce, online multiplayer games, antivirus and value-added telecommunications services, has designed and created the world’s most popular application with 1.2 billion users worldwide.

The huge change in technology in China has also helped to create a huge and far-reaching change in the long-term outlook for domestic economic activity; Because Chinese authorities have been able to move beyond manufacturing thanks to various technologies and enter new areas such as digital healthcare and artificial intelligence. In addition, China’s astonishing advances in technology could pave the way for it to overtake the United States.

The largest Chinese technology companies

The dream of the Chinese government and the active sectors in the field of technology

Chinese President Xi Jinping has launched a series of crackdowns on his country’s $ 4 trillion industry, which is truly astonishing given the country’s excellent progress in various areas of technology. Currently, more than 50 monitoring actions have been taken against the alleged crimes of various companies against which they have been charged.

These crimes include various cases; From the anti-monopoly law to the violation of the law on providing information. Sanctions related to government bans and fines have severely affected stock prices, costing investors as much as $ 1,000 billion.

Xi Jinping’s short-term goal is to take such drastic measures to confront the big investors and reduce their capital, as well as to dominate the rogue digital market; But the main goal of the Chinese Communist Party is to fundamentally change the structure of technology-related industries in the country and reshape them according to the plans of those in power in the country. Chinese officials hope that such an approach will lead to China’s further advancement in technology and the creation of a competitive environment, and that this competition will benefit customers.

Xi Jinping
Xi Jinping

The principles of geographical policy can also motivate officials to take more repressive and coercive measures and speed up the process. China’s restrictions on access to and use of hardware developed by US companies have made it increasingly clear to Chinese officials the need to take steps to increase self-sufficiency in critical and strategic areas such as semiconductor components.

Increasing hardware production could also be beneficial for the country if countermeasures in the field of social media and video game companies and the like guide talented engineers and programmers in the right direction; Of course, we must not forget that countermeasures in the field of technology are a very big risk and may not only cause more technology to flourish in China, but also cause long-term damage to China’s economic and organizational growth.

Significant progress of China in the field of technology

Twenty years ago, it seemed unlikely that China would be able to make such amazing advances in technology in the future. Silicon Valley-based companies did not take leading companies like Alibaba seriously at all until they made progress in e-commerce today and expelled them from the United States for creating technologies copied from American technologies.

Today, 73 Chinese companies are valued at more than $ 10 billion, and most of them employ Western or overseas executives and executives. Enormous dynamic and risky investment in China has led to the creation of successful technology companies. More than half of China Unicorn startups (startups worth more than $ 1 billion) operate in areas such as artificial intelligence, big data, and robotics.

China's growth in technology

The difficult challenges of making fundamental changes in technology in China

The confrontational actions of Chinese officials against technology activists, such as Vladimir Putin’s war on sectarianism (the rule of a small group of unworthy people over people who are not accountable to the people at all) in the 2020s, are not at all a war between insiders and a group of destructive people; Rather, it is rooted in troubling dilemmas for Western lawmakers and politicians.

These problems include the digital market’s tendency to monopolize and hoard information (reluctance to destroy essential or even unusable information), misuse of suppliers, exploitation of employees, and undermining the discernment of good and bad among the people.

With the beginning of reforms and the beginning of free market policies by China, the implementation of strict and serious policies was postponed and the Communist Party tightly controlled the financial, telecommunications and energy sectors; But on the other hand, it also provided the ground for the flourishing and advanced of technology.

Leaders in technology and the digital realm grew at an astonishing rate because there was almost no legislative authority against them. Currently, the number of users of the application belongs to Didi global company, a company active in the field of transportation services, more than the American population!

Large digital platforms are abusing their freedom to trample on smaller companies. They have also blocked the activities of economic actors on more than one platform. They violate the most basic rights of workers such as food couriers and technology workers. Party rulers want to put an end to such abuses; Is this an ambitious goal and is it supported by investors?

The question now is how such a goal can be achieved. China is becoming a policy laboratory in which an uncontrollable and irresponsible government confronts the world’s largest corporations for control of the basic infrastructure of the 21st century. Some of the country’s resources, such as land or labor, which the government has called factors of production, may become public property.

The government may also require different platforms to interact with each other. Interoperability refers to the ability of platforms to work with each other; So we can say that a platform like WeChat can not outperform its competitors. Policy-making on widely used algorithms needs to be done more carefully. All of these may be harmful, but they will improve the market situation.

Negative effects of countermeasures against technology

Of course, the good results of the Chinese government’s countermeasures against technology companies should not confuse us. Such actions to counter the technology world in China prove the reckless power of the ruling party. In the past, the party’s priorities have been sacrificed to the personal interests of internally corrupt individuals, and the attraction of foreign capital and entrepreneurship has placed restrictions on the party.

Now the people of the party feel bold and make various laws quickly and apply them with great prejudice. China’s underdeveloped regulatory body is on the rise. The number of members of the main monopoly agency of this institution is 50 people or the same; But these same people have little authority to destroy many businesses easily and quickly, and companies must accept the decisions of these members without objection and without reason.

Chinese Communist Party

Chinese leaders have successfully disobeyed Western laws. They seem to see the power of legislation and restricting themselves in technology-related industries as a means of refining and refining policy approaches to public investment.

In fact, it can be said that their goal is to create a plan to combine social welfare and success with control, in order to maintain China’s stability and maintain party power. In fact, as China’s population declines, the party wants to increase government-led production by means of automating factories or building large urban clusters.

However, efforts to transform technology in China can still easily lead to misguidance and can make foreign investors reluctant to enter China. At the same time, it can hinder the provision of various services and the establishment of global technology standards around the world in the 21st century (the United States achieved this in the 20th century).

Undoubtedly, the effects of any Chinese growth in various fields of technology will be seen outside the country. Another great danger is that the suppression of technology-driven industries destroys the entrepreneurial spirit and eagerness to enter the field.

As the economy shifts from pushing different sectors to service delivery, spontaneous risky actions, which are also supported by the capital market, become more important.

Many large investors have left their companies and do not attend important gatherings to make decisions or ask questions; Of course, people who want to succeed consider all aspects before embarking on their journey; Because countermeasures have increased the cost of investment.

The largest Chinese tech companies are now offering a 26 percent discount per dollar compared to US companies. The Chinese government has chosen startups such as Minnoews, which uses the Didi Internet taxi business as its main target, by launching a routing app. These repressive measures make startups think they have been severely attacked. However, the impact or failure of China’s growing technology growth on creativity growth is still unclear.

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