New technology key to globalization of digital economy

Visitors check their phones behind the screen advertising facial recognition software during Global Mobile Internet Conference at the National Convention in Beijing, on April 27, 2018. [Photo/Agencies]

By Zhang Wei，a research fellow and deputy secretary-general at the Beijing-based think tank Center for China and Globalization(CCG).

Amid the COVID-19 pandemic, the integration of digital technologies with the financial industry has been accelerating and generating economic and social value in many application scenarios.

How to use digital technologies to identify and detect risks in the digital financial sector is an important topic of concern to global government agencies, financial regulatory authorities and related participating institutions.

Andrew Sheng, former chairman of the Hong Kong Securities and Futures Commission, said that finance and technology today are inseparable, because financial deepening in speed, scale and scope would not have been possible without recent developments in technologies, especially in blockchain, 5G, artificial intelligence and big data. In addition, financial markets have grown in spite of the pandemic, when working from home was made possible by moving trade transactions and payments online.

The People's Bank of China, the China Banking and Insurance Regulatory Commission and the China Securities Regulatory Commission recently drafted for consultation the Measures for the Administration of Due Diligence of Customers of Financial Institutions and Preservation of Customers' Identity Information and Transaction Records. The measures would require that financial institutions take necessary technical measures to realize the complete and accurate preservation of customer identity data and transaction information, prevent the loss, damage or leakage of customer identity data and transaction records, and ensure that each transaction can be reproduced and traced.

Financial technologies such as blockchain and facial recognition have made financial operations more secure and widely adopted. Mainstream banks, insurance companies, securities companies and asset managers have adopted fintech wholesale and transformed the range, speed and costs of financial services. Therefore, digital KYC, or "know your customer", as a form of digital authentication should be approached where related guiding principles and technological solutions can effectively and fully comply with the requirements of the Financial Action Task Force.

As a result of the emergence of cybercurrencies, some countries have adopted experiments in official central bank digital currencies, while mainstream retailers are considering accepting such as means of payment. Parallel to advances in fintech is the innovation in regulatory technology, in which digital authentication plays a crucial role that enables companies and regulators to improve their cybersecurity.

In the context of the current trend of increasingly rapid financial innovation, forward-looking thinking and predictive strategies are particularly important for the application of regulatory technology and cross-border international cooperation. Following the trend of emerging digital financial services, the development of digital authentication is a key component of regulatory technology as the "new infrastructure" essential for the enhancement of a nation's digital financial industry and the governance of the digital economy.

Anselmo Teng, former chairman of the Monetary Authority of Macao and co-chair of the Alliance for Financial Stability with Information Technology, pointed out at a recent workshop that digital "know your customer" and digital authentication are new forms of infrastructure that provide security for the sound development of the digital economy and digital commerce, including international trade.

In China, the digital transformation of the domestic financial industry is accelerating in multiple directions, as it has benefited from the comparative advantages of more advanced infrastructure, richer business scenarios and the larger market scale. With the rapid advancement of digitalization, the application of digital authentication to improve regulatory efficiency and promote market regulation is not only an inevitable path to shape the development trend of digital finance, but also a technological transformation of regulatory wisdom and experience that may help bring the applications to many other sectors.

Chiang Chun Yuan, co-chair of the technical committee of the Alliance for Financial Stability with Information Technology, said that aiming at achieving sustainable development of the digital economy, services supported by digital technology should focus on financial inclusion and healthcare, enhancing trust and avoiding discrimination against the elderly and other people with special needs. Some Asia-Pacific jurisdictions have already set up digital authentication centers, which effectively facilitates the operation standards of digital financial services and improves the efficiency and safety as well as the globalization of the digital economy.

In terms of financial supervision empowered by digital technology, China should build its own type of digital finance model through coordinating the efforts of government agencies, industrial participants, academia and research resources to foster the exploration and application of digital authentication in the field of digital finance and improve the quality and effectiveness of digital financial supervision to ensure financial stability.

Under such an approach, China can contribute its wisdom and strength to the sound and sustainable development of the digital economy.

From China Daily， 2021-4-30

CCG Books

● Published by Springer 

● Edited by Wang Huiyao, President and Miao Lu, Vice President, Center for China and Globalization(CCG), Beijing, China 

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The internationalization of Chinese enterprises is one of the most notable aspects of economic globalization in the 21st century. Despite the 2008 financial crisis and weak global outbound investment, under the “go global“ initiative, Chinese outbound investment has gone from strength to strength, while also diversifying in terms of investment modalities, destinations, and industries. However, growing anti-globalization sentiment in some countries has also created new challenges for Chinese firms expanding internationally.

Drawing on nearly 3000 data samples, using both quantitative and qualitative research methods, this book presents unique insights into the features and patterns of Chinese enterprises’ globalization. The analysis provides a useful reference for enterprises that have already gone global and those that plan to. In particular, this book investigates challenges confronted by Chinese companies when doing business in foreign countries. It summarizes research covering three angles, namely: the current situation, causation analysis and corresponding solutions, and recommendations for firms, government agencies and other institutions.

This book provides a comprehensive overview to help readers to grasp the broad picture of the international expansion of Chinese enterprises. It has important reference value for enterprises to help devise foreign investment strategy, seize opportunities, and navigate challenges in the course of globalization.

● Links：

https://www.springer.com/cn/book/9789811546457

● Published by Edward Elgar 

● Edited by Wang Huiyao, President and Miao Lu, Vice President, Center for China and Globalization(CCG), Beijing, China 

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An excellent guide for understanding the trends, challenges and opportunities facing China through globalization, this Handbook answers the pertinent questions regarding the globalization process and China’s influence on the world.

With contributions from leading experts and international researchers, each chapter covers key topics regarding China’s participation in globalization, including: China’s new role in global economic governance; outward direct investment; China’s soft power and the implications for foreign relations; global migration, diaspora and talent. An enriching range of case studies and extensive empirical research are used to explore the successes and failures of globalization in China, and to discuss the dilemmas facing decision makers in today’s globalized world. A major contribution to the field, this Handbook offers valuable insights to China’s often misunderstood globalization process.

An essential reference for academics and researchers looking for a go-to empirical resource, this Handbook provides scholars of economics, politics and East Asian studies with an exemplary selection of contemporary research on China and globalization.

● Links：

https://www.e-elgar.com/shop/handbook-on-china-and-globalization

● Published by Springer

● Authors: Wang Huiyao, President and Miao Lu, Vice President, Center for China and Globalization(CCG), Beijing, China 

The first effort to address the gap regarding higher-end talent within the scholarly work on internal labor migration in China

Provides an essential overview of the major milestones in China’s talents attraction policies, as well as several recommendations to help further improve those policies

Investigates corresponding policies in Germany, Japan, and Singapore to serve as a basis for comparison

Provides a snapshot of first-hand reference material for relevant stakeholders involved in cooperation with China

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This book offers the most comprehensive, up-to-date assessment of China’s domestic and international migration. Restructuring economic development requires large numbers of educated and skilled talents, but this effort comes at a time when the size of China’s domestic workforce is shrinking. In response, both national and regional governments in China have been keen to encourage overseas Chinese talents and professionals to return to the country. Meanwhile, the Chinese government has initiated a number of policies to attract international highly-skilled talents and enhance the country’s competitiveness, and some Chinese policies have started attracting foreign talents, who are coming to the country to work, and even to stay. Since Chinese policies, mechanisms, and administration efforts to attract and retain skilled domestic or overseas talents are helping to reshape China’s economy and are significantly affecting the cooperation on migration and talent mobility, these aspects, in addition to being of scholarly and research interest, hold considerable commercial potential.

● Links：

https://www.springer.com/gp/book/9789811362552#aboutBook

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