China’s cyberspace watchdog wants to build an “affectionate” relationship between internet enterprises and the government, a senior official said on Friday, the latest verbal assurance to an industry still on edge after a long and bruising regulatory crackdown. Niu Yibing, vice minister of the Cyberspace Administration of China (CAC), told a news conference the agency was supportive of the sector’s healthy development and while implementing rules, wanted to create a “healthy, get-to-the-top, can-do entrepreneurial atmosphere”.
The CAC was among Chinese regulators which in late 2020 launched an unprecedented crackdown on the country’s technology giants. The campaign upended long-held industry practises, set new rules on how the companies should do business, and also roiled markets, shaving billions of dollars in market value off the firms.
While regulators, facing a slowing economy, have not announced new rules this year at the pace they did last year, companies have remained cautious, with many including the likes of giants Alibaba Group and Tencent cutting back on new investments and laying off thousands of workers.
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