China’s economic miracle might turn into digital marvel balancing between tightened control and its focus on tech innovations. Bitcoin crashed several times after China’s move to halt exchanges in 2017. Nevertheless, it was announced to accelerate blockchain development increasing the amount of investments in the industry up to $6 billion by the end of 2018. Is there a strategy behind these fluctuations or the Great Tech FireWall is the key to a success?
China has started actively implementing the most aberrant social controlling system the world has ever observed. By 2020 each one of its 1.4 billion residents will get an individual personal scorecard. Positive behaviour will be remunerated while negative will be tracked and punished. The Communist Party calls it social credit — an approach to control the population, others say it add up to the world’s first advanced dictatorship.
‘The internet must be “clean and righteous” and vulgar content must be resisted in the field of culture’, Chinese President Xi Jinping told at a meeting of senior propaganda officials, state media said in the end of August. The strategy is followed and implemented scrupulously.
The government line to restrict the content distribution and to control the rest pie is followed quite successfully. China shut as many as 1,28,000 websites that contained ‘doubtful and harmful’ information, Xinhua reported in January, 2017.
This might be a way back to the Middle ages if it wasn’t followed by active digitalisation promoted among youth. China is actively supporting digital innovations to design a new reality. According to McKinsey in 2016, the value of consumer mobile payments was $790 billion, 11 times that of the United States. With one in three of the world’s 262 unicorns is Chinese, commanding 43 percent of the global value of these companies the government is investing in education and promotes digital literacy in childrengardens.
Digital Silk Road
Alibaba Group executive chairman Jack Ma predicted three more decades of rapid technological change across industries.
“Throughout history, technological disruptions have followed similar trajectories: 20 years of technological disruption followed by 30 years of further rapid change as new technologies are applied throughout society,” he wrote.
A list of the most successful crypto companies were listed in China to give a benchmark and to highlight its path to the tech future. How does it coincide with recently imposed regulations and bans? This might turn into a new China’s digital miracle. The future has already come to Asian markets. What do we see from the Great Tech FireWall is just a part of a big digital pazzle that is backed with tech giants such as NEO that has already surpassed $1 Bln USD Market Cap and continues to grow.