Chinese officials on Wednesday (June 22) approved the promotion of the “healthy” development of the payment and FinTech sectors across the nation, according to a Bloomberg report, perhaps a sign leaders won’t look as harshly at tech companies in the future.
The country’s central commission also backed the enhancement of payment platform regulations, state broadcaster China Central Television reported, noting companies “would be encouraged to return to their roots while the authorities will improve regulation,” the report said.
The plan includes assurances from Chinese officials, including President Xi Jinping, with regard to the security of the nation’s payment and financial infrastructure and the limiting of systemic financial risks, according to the CCTV report cited by Bloomberg.
Chinese leaders will step up their oversight of financial holding companies and financial institutions (FIs) that get outside investment from platform companies, although details on that part of the plan were limited.
China’s strict regulations doomed Ant’s initial public offering (IPO) in 2020, but the new structure could pave the way for the company to set up a financial holding company and fold key operations into it, following a model last year by the central bank.
Ant has said it has no plans to initiate another IPO, but Chairman Eric Jing said last year that it would eventually go public.
Related: US Lawmakers Push Bill That Could Block FinTech, AI Investments in China
Meanwhile, the U.S. Congress is pressing ahead with legislation that would propose the screening of investments in countries seen as adversaries, like China, to protect U.S. technology and rebuild critical supply chains, The Wall Street Journal reported.
The bill, which counts bipartisan support, would require American companies and investors to disclose certain outbound investments, and it would create a new interagency panel to review and block investment on national security grounds.
The measure would require U.S. entities and their affiliates to notify the federal government of activities in China and any “country of concern,” defined as “foreign adversary” in sectors considered crucial to the supply chain, or if it involves “critical emerging” technologies. Those sectors and technologies include semiconductors, large-capacity batteries, pharmaceuticals, rare-earth elements, biotechnology, artificial intelligence, quantum computing, hypersonic, financial technologies and autonomous systems.
Both the House of Representatives and Senate could vote on the bill before July 4.
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