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List of Chinese tech companies that have Regulator foul It looks almost the same as the list of technical success stories. Settlement firm Ant Group, a spin-out of e-commerce giant Alibaba, was forced to unlist its shares in Shanghai last year.Regulatory authority Pulled Didi, Ride hailing app from the app store right after the initial public offering in New York. It cites national security concerns regarding the handling of data. Meituan, a food delivery app supported by Tencent Faced with antitrust investigation There are also questions about how to handle the driver.
There is now growing concern about widespread crackdowns on private sector businesses.The announcement that education companies are banned from making a profit could wipe out $ 100 billion Private education market..Prohibition of such business using Variable Interest Entities (VIEs), a common measure to allow foreign investors to circumvent China’s regulations, have triggered a broader sale of Chinese-related stocks, but Beijing’s securities regulators have called. After that, this was alleviated somewhat. Trying to reassure International investor on Wednesday night.
The crackdown partially reflects the same issue elsewhere seeking tighter regulation and the dissolution of big tech companies. The roster of US companies in trouble with regulators also features the country’s success stories, from Uber’s hardships about dealing with workers to Facebook’s attitude towards consumer privacy. Concerns about the rise of tutors reflect similar Western concerns about social mobility and relentless pressure on children for successful exams. China’s concerns about the impact of business success on the wider society are not uncommon.
“Techlash” is a familiar story now, but there are important differences.Some of the most basic are that, unlike the United States, China’s own tech giants were often dependent on it. Foreign supporters In the early stages. These investors now need to use the VIE or US listings to get a return on their investment.
In the future, innovative companies will invest abroad to compensate for regulatory uncertainties or even to compensate if an overnight announcement from the government can completely wipe out the value of their investment. You will have to pay a high premium to your house. Authorities are pushing Hong Kong as an alternative and potentially safer listing place, but investors will be skeptical of such guarantees.
The question is, is the Chinese government simply unwilling to invest and calculated that international finance is no longer useful for development, or is it actively discouraging companies from listing overseas? China’s national security concerns lie not only in data management, but also in America’s dominance over the global financial system through the dollar. Allowing regulatory uncertainty in exchange for higher returns is one thing. Investing against the will of the Chinese government, which is showing signs of wanting to “separate” the economy from the United States, is another thing.
Ultimately, this is the most important difference. China’s crackdown is partly State domination over the economyIn contrast to US and European regulations, which generally aim to protect consumers or ensure that markets function better.Entrepreneurship crackdowns aren’t limited to Big Tech — Sun Dawu, the founder of one of the country’s most successful agricultural groups Sentenced to 18 years in prison Wednesday after a clash with authorities. The success of a company is inevitably subject to scrutiny, but when viewed as a threat to contain success, it can cost China a great deal.
China’s misguided crackdown on business Source link China’s misguided crackdown on business