The nation’s tech companies can now seek money abroad with the help of China’s internet watchdog, indicating a change from its previously strict policy.

On Friday, China’s internet authority delivered its most public support to date for local technology businesses seeking funding abroad, indicating a shift in Beijing’s strict regulatory approach in the face of the nation’s faltering economy.
At a news conference in Beijing, the Cyberspace Administration of China (CAC) sought to allay investor concerns and curb market speculation. Officials praised the benefits of the country’s programme of opening up its economy.
According to Sun Weimin, director of the CAC’s cybersecurity coordination bureau, “China’s commitment to improve its openness will not change, and China’s determination to share its growth chances with the rest of the world will not change.”

Following a broad crackdown that began in late 2020 and resulted in trillions of dollars in company market value being wiped out across New York and Hong Kong, the internet regulator’s most recent public remarks reflect efforts by China’s top leadership to “normalise” regulation over the tech sector. This effort also served to discourage venture funding for Chinese tech start-ups.

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