Deciphering the Informatization Development Strategy

At the end of July, the State Council released the Outline of theNational Informatization Development Strategy, a guiding document that will serve as an important reference for planning and policy making in IT development over the next 10 years. New goals and recurring language in ICT regulations are highlighted below. Analyzing this piece can help in deciphering what is on the horizon.

In an effort to develop information resources and unleash digitalization benefits, Article 10 calls for the development of a National Big Data Platform that will gradually develop backup and authentication of publically traded data. Article 11 also calls for a ‘Secure & Controllable’ national data system to encourage an open information resource-sharing environment.  ‘Secure & Controllable’ terminology appeared 5 times in this plan: Once in regards to e-commerce, twice under developing core technology, once in reference to physical infrastructure, and once in establishing an open data system. These are the key areas where we can expect ‘Secure & Controllable’ to be implemented going forward. Additionally, Article 49 asks policy makers to speed up the promulgation of the Cybersecurity Law, E-Commerce Law, Telecoms Law, Encryption Law, and Internet Information Services regulations, among others.  Article 51 in particular mentions a goal of improving market entry and exit for Internet Information Services providers. This is positive news amongst CAC’s regulations tightening management of all Internet Information Services content back in June.

In terms of internet-based operations in the service sector, Article 23 promotes development in several sectors including finance, transportation, logistics, and commercial service enterprises. The State Council has already started to do this by recognizing the online car-hire industry. It also promotes the development of an e-commerce ecosystem and leading development of Internet finance. This article raises some questions about the pending e-commerce law and the current state of Internet finance in China. We can expect more development in e-commerce in the coming months.

Lastly, Article 36 calls for a push to digitalize the traditional media industry. This article solidifies SAPPRFT’s role in regulating content management and is in line with the Notice on Further Accelerating Integration Between Broadcasting and TV media and Emerging Media published in July.