Shanghai: Tighter regulations, billions of dollars in loss of overseas stock value, and firmer commitments made by the government-Chinese tech giants are suffering from “Big Brother” continuous attacks on innovation and companies.
However, the ever-expanding crackdown has largely attracted Chinese consumers to shrug their shoulders, and there is a reason for this: people generally think it is necessary.
Concern is rising in China over chaotic online lending and accusations of powerful platforms squeezing merchants and misusing consumer data, reflecting global unease with Big Tech that has Facebook, Google and others also facing scrutiny at home and abroad.
“With China, it immediately becomes about the Communist Party. But if the UK government were doing this, people would probably be OK with it,” said Jeffrey Towson, head of research at Asia Tech Strategy.
“These actions look quite reasonable.”
Companies such as e-commerce giants Alibaba and JD.com, along with messaging-and-gaming colossus Tencent, are among the world’s most valuable businesses, feasting on growing Chinese digital lifestyles and a government ban on major US competitors.
But they have become victims of their own success.
In October last year, Jack Ma, the co-founder of Alibaba, committed the most important crime, publicly condemning the Chinese regulators’ warnings against the company’s financial department, Ant Group, for increasingly severe warnings. This is the most important thing. sin.
The Alipay platform of Ant Group is ubiquitous in China and is used to purchase everything from meals to taxis, groceries and travel tickets.
The slow pace of supervision and supervision has also allowed Ant Financial to expand into the areas of loans, wealth management and even insurance. Tencent’s financial technology image has also improved.
Consequently, they have become “overly powerful actors capable of pushing regulatory boundaries without regard for systemic risks,” Eurasia Group consultancy said in a research note.
These ambitions are in conflict with Beijing’s years of campaign to clear its chaotic financial system to create dangerous debt.