China's 'Internet Plus' pioneers new national IT model

Subject

China's new national IT development plan.

Significance

The government last month revealed an action plan called 'Internet Plus' -- an ambitious agenda of technological innovation that aims to weave information technology into all aspects of social and economic life, from smart cities and e-government to long-distance learning and healthcare.

Impacts

• Private companies, which dominate IT, will join their state-owned counterparts as state-backed national champions.
• Foreign firms will face greater scrutiny and stricter security reviews; market access will be harder, especially in government procurement.
• There will be some new opportunities for foreign firms, but their Chinese counterparts will become more competitive internationally too.
• Disregard for protection of personal data will enable China to become a leader in sophisticated data analysis.
• Internationally, China will pursue recognition of national sovereignty as the fundamental principle for global internet governance.