ИСТИНА

China’s rapid ascent as a global innovation leader has been fueled by state-led industrial policies, vast public and private investments, and a vibrant digital economy. However, this growth has prompted a robust regulatory response from the Chinese government aimed at ensuring that innovation aligns with national priorities, public welfare, and ethical standards. This paper critically examines how China is regulating key areas of innovation—including digital platforms, artificial intelligence, biotechnology, and data governance—through a mix of top-down policy instruments, legal frameworks, and institutional oversight. The analysis explores the dual imperative faced by Chinese regulators: fostering innovation to sustain economic competitiveness while simultaneously curbing its excesses to maintain social stability, prevent monopolistic behavior, and protect data sovereignty. Notable policy interventions such as the Anti-Monopoly Law revisions, the Cybersecurity and Personal Information Protection Laws, and AI regulatory guidelines are examined in detail to understand how the state navigates this complex terrain. By situating China’s regulatory approach within its broader political economy, the paper highlights the tensions between centralized control and market dynamism, and between domestic priorities and international integration. It also considers the implications of China’s regulatory model for businesses, international standard-setting, and the global innovation landscape. Ultimately, the paper argues that China’s evolving regulatory regime represents a distinctive model of innovation governance—one that may shape global norms and challenge liberal regulatory paradigms in the digital era. Keywords: Innovation policy, Technology Regulation, Digital Economy, AI, China