Xi has been trying to balance the need for cyber defence and the desire for technological development. For the development community, government restrictions are counterproductive, for those charged with protecting the country, it is a necessity. Striking the right balance is about leadership.
Allegations that US intelligence hacked the SWIFT messaging system, used by banks to transfer trillions of dollars each day, hacked Microsoft's software, are examples of what every government fears. Beyond this, the ability to use of big data to manipulate public opinion, exhibited by Cambridge Analytics, in the passing of Brexit and the election of Donald Trump, indicate a new frontier of concerns.
On the development side, access restrictions to the internet can impede development and innovation. For China to realize its economic potential, it must be able to use the same information and tools, if it is going to successfully compete.
Achieving a happy medium is a challenge for all nations, the question is will China blaze a new path or follow established models. As pointed out, real solutions in these areas will be at best compromises.