Chinese regulators are signaling they may ease a year-long crackdown on Chinese tech giants as the country's leaders prioritize shoring up a flagging economy.
Why it matters: Loosening restrictions on one of China's most vibrant sectors could remove one source of downward pressure on an economy gutted by COVID lockdowns. But it could also slow progress towards Chinese President Xi Jinping's goal of restructuring a major sector of the economy.
What's happening: Xi said the country would pursue "healthy development" of internet platforms after a meeting of top party leaders last week, fueling expectations that the end of the tech crackdown may be in sight.
Background: For more than a year, Chinese regulators have targeted some of China's biggest tech firms as Xi has pursued policies to fix what he calls the "disorderly expansion of capital." China's tech industry has been trending towards the creation of monopolies that hinder domestic innovation and put more economic power in the hands of companies while threatening the Chinese Communist Party's ability to control a massive political and geopolitical lever.
The big picture: The regulatory crackdown represents a "dramatic clash between public and private power," analysts at Lawfare Blog wrote earlier this year.
Between the lines: U.S. analysts have worried Beijing's pressure on some Chinese companies to avoid listing on foreign stock exchanges and keep user data inside China's borders could inhibit and further bifurcate the development of the U.S. and Chinese tech sectors.
What to watch: The Chinese government is expected to take a 1% stake in more of China's top tech companies, the Wall Street Journal reports, and insist on more sway in company decisions, while easing the regulatory environment.
Go deeper: Beijing's antitrust push poses a problem for Western regulators
See more here:
China's top leaders signal reprieve for tech companies - Axios
