Sep 13, 2021

The Economist on China's tech giants and the government crackdown

Of all china’s achievements in the past two decades, one of the most impressive is the rise of its technology industry.  Alibaba hosts twice as much e-commerce activity as Amazon does.  Tencent runs the world’s most popular super-app, with 1.2bn users.  China’s tech revolution has also helped transform its long-run economic prospects at home, by allowing it to leap beyond manufacturing into new fields such as digital health care and artificial intelligence (ai).  As well as propelling China’s prosperity, a dazzling tech industry could also be the foundation for a challenge to American supremacy. 

That is why President Xi Jinping’s assault on his country’s $4trn tech industry is so startling.  There have been over 50 regulatory actions against scores of firms for a dizzying array of alleged offences, from antitrust abuses to data violations.  The threat of government bans and fines has weighed on share prices, costing investors around $1trn.




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