Chinese pilot reform plan to boost innovation, the use of digital yuan
Published: Jan 06, 2022 08:36 PM
Visitors experience payment with digital yuan at China International Fair for Trade in Services on September 6, 2021. Photo: Li Hao/GT

Visitors experience payment with digital yuan at China International Fair for Trade in Services on September 6, 2021. Photo: Li Hao/GT

A major pilot reform plan released by the State Council, China's cabinet, on Thursday is set to boost innovation and expand the use of the digital yuan in more scenarios, among other goals, with favorable policy support in areas such as land, labor, capital and technology. 

Overall, the pilot plan focuses on reform of the market-based allocation of factors of production, including land, labor, capital, technology, data and resources. It aims to provide a replicable and scalable path and model for the rest of the country, the National Development and Reform Commission said on Thursday, while elaborating on the plan.  

Analysts pointed out that the plan places great emphasis on the development of technological innovation, which will further promote the sustainable development of the technology industry.

For instance, the plan proposes to support high-quality science and technology enterprises to seek IPOs or listings to help them secure funding.

China has been supporting the development of high-quality science and technology enterprises, while ensuring their expansions are in line with regulations, Liu Dingding, a Beijing-based independent analyst, told the Global Times on Thursday. 

Liu added that supporting these tech companies, while also enforcing market regulations could help ensure their long-term sound development, leading domestic technological innovation to boom in a sustainable way. 

The plan also emphasizes ways to explore and establish related rules for data trading and application, and expanding application scenarios, while strengthening data security. 

On Thursday, 13 Chinese government departments jointly released an amendment on cybersecurity reviews, which included the data processing activities of network platform operators that affect or may affect national security, and new regulations to improve algorithm recommendation services were also launched.

The pilot reform plan on Thursday also encourages the use of the digital yuan in the scenarios of retailing, utility bills and administrative services, in another major boost for the broader adoption of the country's digital currency. 

The beta version of the digital yuan wallet app went live on Apple and Android app stores on Tuesday as the official service platform for China's digital currency ahead of the Beijing Winter Olympics. 

Global Times