Xi Jinping is rewriting the rules for how China’s economy works. Expect two big shifts in 2022 WorldAhead
government stepped up its fierce attack against the country’s technology companies in the spring and summer of 2021, business leaders, analysts and investors found themselves repeatedly asking: when will it stop? More than $1trn was wiped off the collective market capitalisation of some of the world’s largest internet groups, such as Tencent, a gaming and social-media giant, and Alibaba, China’s e-commerce powerhouse. Entire business models—online tutoring, for example—were laid waste.
As the new year dawns, vast swathes of China’s economy have been hit by the regulatory crackdown. Xi Jinping, China’s president, is rewriting the rules for how the economy works, and how the data that companies collect is treated. That has meant striking down some of the country’s most prominent tycoons, such as Jack Ma, the founder of Alibaba, and forcing other groups, such as DiDi Global, a ride-hailing giant, into submission.
The second shift will be in how Chinese tech groups raise capital. Neither Chinese nor American regulators want Chinese companies to go public in New York. Even initial public offerings in Hong Kong have taken on a new level of risk. Chinese regulators have railed against the “disorderly expansion of capital” by tech firms. A meeting of a key decision-making body on August 30th noted that the initial crackdown had shown signs of success.
Analysts at Morgan Stanley, a bank, call this a “reset” of an entire industry. As Chinese tech firms adjust to the reality of tighter government control, their value to investors will inevitably be lower.This article appeared in the China section of the print edition of The World Ahead 2022 under the headline “From boom to techlash”
South Africa Latest News, South Africa Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
Analysis: Xi Jinping is rewriting history with his eyes on the future'As Chinese leader Xi Jinping looks set to seek a third term in power, he is seemingly preoccupied with the past, not the future.' Analysis by Nectar_Gan & steve0george
Read more »
Analysis: Xi Jinping is rewriting history with his eyes on the future'As Chinese leader Xi Jinping looks set to seek a third term in power, he is seemingly preoccupied with the past, not the future.' Analysis by Nectar_Gan & steve0george
Read more »
The IT establishment is dressing in new clothesBut taking on the big tech firms will be hard
Read more »
SoftBank Reports $3.5 Billion Loss, Hit by China’s Tech CrackdownSoftBank reported its first quarterly net loss in a year and a half after China’s stricter regulations on technology companies caused a sharp stock selloff and weighed on SoftBank’s investment portfolio.
Read more »
A battle is brewing between psychedelics companiesA battle is brewing between psychedelics companies as they fight for investors, funding and viable treatments. There's billions on the line.
Read more »
Young climate activists from Unite For Action converge on COP26Despite being unable to access the same spaces as country representatives, they've come with solutions and are looking for investors.
Read more »