Page 272 - 2017 White Paper
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7 White Paper on the Business Environment in China

and lives of the masses. [We] must … seek innovation encourage the healthy development of e-commerce, the
and development, working hard to build our nation as a industrial internet, and internet banking, and to guide
strong Internet power (Lingvingston 2016).” internet-based companies to increase their presence
in international markets, we will develop the ‘Internet
The concept later received significant attention in Plus’ action plan to integrate the mobile internet, cloud
Chinese media following its inclusion into the November computing, big data, and the Internet of Things with
2015 Guidelines for the 13th Five Year Plan. It was modern manufacturing” (Kwan 2015).
mentioned again in President Xi’s December 16, 2015
keynote speech at the second World Internet Congress Originally a concept proposed by Pony Ma, CEO of
in Wuzhen, China. State media reports that December Tencent Holdings, “Internet Plus”, accrording to Mr. Ma,
followed President Xi’s cue by stating that Internet Power is an amalgamation of the Internet and conventional
would be one of the key strategic policies in China’s 13th industries. For example, Internet plus retail becomes
Five Year Plan (Lingvingston 2016). online shopping. The scope of“Internet Plus”is not merely
limited to retail, home electronics, communications, and
In his inaugural address to the Cybersecurity Leading media, but also expands into finance, transportation,
Group, President Xi linked cybersecurity with national medical services, education, environmental protection,
security and development, noting “there is no national and other areas (Kwan 2015).
security without cybersecurity, and no modernization
without informatization”. “Cybersecurity”, has also In the previously mentioned Report on the Work
been used by the Communist Party to increase online of Government, Premier Li Keqiang also stated that
monitoring and control. For example, an Anti-Terrorism “we will implement the ‘Made in China 2025’ strategy,
Law passed in December 2015 requires companies to seek innovation-driven development, apply smart
assist Chinese government authorities in carrying out technology, strengthen foundations, pursue green
terrorist investigations by providing “technical interfaces” development, and redouble our efforts to upgrade China
and “technical means of support” as well as encryption from a manufacturer of quantity to one of quality. We
keys for any data located on their private computer will promote the extensive application of information
servers. In 2015, China also passed a national security law technology in industrialization, develop and utilize
and new regulations that call for technology imported networking, digitalization, and smart technology,
into China for use in certain sensitive industries to be and work to develop certain key areas first and make
“secure and controllable” (Lingvingston 2016). breakthroughs in these areas” (Kwan 2015).

As China seeks to transition its economy away At the same time in 2015, China announced plans
from investment-led growth toward one driven by to invest 2 trillion yuan (US$323 billion) by 2020 to
consumption, Internet Power seems to be the nation’s upgrade its national broadband and 4G capabilities, with
best hope of ensuring sustained economic growth and the intention of providing Internet access to its entire
national prestige. population. Cyber-sovereignty now is the dominant
objective of China’s international engagement on
This hope includes the recently introduced concept of Internet governance. It was the main theme of President
“Internet Plus”. In July 2015, the State Council published an Xi’s keynote speech at the World Internet Congress
Internet Plus Action Plan that called for greater adoption (Zhang and Cao 2016).
of cloud computing, the mobile Internet, big data, and the
Internet of Things, and asked Chinese Internet companies Pursuing cyber-sovereignty and by inclusion of
to increase their international presence. This plan went “Internet Power” policies in the 13th Five Year Plan is a
hand in hand with the “Made in China 2025” plan, which clear indication of President Xi Jinping’s administration’s
seeks to promote advanced technologies to help turn recognition of the central role of the Internet in promoting
China into a “green and innovative” world manufacturing domestic innovation and transforming China’s Internet
power in the next decade (Lingvingston 2016). economy into a world leader.

Premier Li Keqiang declared in the Report on the
Work of the Government in the Third Session of the 12th
National People’s Congress held in March 2015 that, “to

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