Diverging incentives for reforming China’s restrictions on digital innovations

Abstract

Purpose

This paper aims to investigate China’s policy on digital trade with the objective to highlight the rationales behind such policy.

Design/methodology/approach

China’s policy on digital trade is assessed by analysing the main regulations imposed in the country in the period from 1985 to 2016 that have an impact on digital trade.

Findings

It was found that there are more than 70 measures imposed today that have a negative impact on digital trade. The measures are diverse and can be justified with several policy objectives, namely, industrial policy, public order and national security, and these support China’s fiscal and state-owned enterprise structure.

Originality/value

This paper analyses China’s policy on digital trade from a new perspective and provides insights on the rationales behind this policy.

Citation

Ferracane, M.F. and Lee-Makiyama, H. (2017), "Diverging incentives for reforming China’s restrictions on digital innovations", Journal of Chinese Economic and Foreign Trade Studies, Vol. 10 No. 3, pp. 259-280. https://doi.org/10.1108/JCEFTS-06-2017-0016