China is about to ‘remove the needle’ for Internet companies
After nearly two years of squeezing the activities of a series of technology firms, Beijing is looking to boost the online sector to revive the economy.
According to Nikkei Asiathe Chinese government intends to change policies related to controlling large technology companies such as Alibaba, Tencent… Sources said, the government will step up regulations on user growth and provide specific support measures to ensure healthy development in the Internet environment.
In early May, a meeting between the leaders of major technology companies in China is scheduled to be held to respond to the government’s new stance. Here, management agency representatives and executives can discuss to strengthen cooperation and mutual development.
“Although the crackdown on big technology companies from 2020 has been effective, the focus of economic development has been significantly reduced. The Chinese leadership has realized this and is looking for ways to strengthen the enterprises. Internet companies in the future”, Nikkei Asia comment.
China recognized livestream sales as a profession from 2020. Photo: Reuters
The Chinese government started a campaign to overhaul the Internet sector in November 2020. The opening was Ant Group, the financial company of Alibaba, which was postponed to the stock exchange. By April 2021, the authorities had imposed the highest fine on the tech giant Alibaba on the grounds of violating antitrust laws. According to the China Market Supervisory Authority (SAMR), billionaire Jack Ma’s company was fined $2.8 billion, equivalent to 4% of Alibaba’s domestic sales in 2019. After that, many new laws were also introduced. launched in the Internet field to restrain Tencent, Alibaba…
According to SCMP, the campaign to regulate domestic technology enterprises has “swallowed” $1.5 trillion from China’s stock market in a short time. A series of investors were concerned and sold out in an extreme way. Leading technology companies are all affected, such as Tencent being kicked out of the top 10 companies in the world by market capitalization on the Hong Kong stock exchange, Alibaba shares also fell more than 30% after the first nine months of last year.
In September 2021, during a discussion session between China Securities Regulatory Commission (CSRC) and leading Wall Street names, CSRC Vice Chairman Fang Xinghai said that China’s recent technology crackdown actions The country is intended to strengthen regulation for companies that own large user platforms, while improving data privacy and national security. He added that restrictions such as banning online tutoring or restricting video games are meant to “reduce anxiety for society”.
Khuong Nha
at Blogtuan.info – Source: vnexpress.net – Read the original article here
