But the new era for tech will be vastly different from the previous one, which was defined by unbridled expansion
Save time by listening to our audio articles as you multitaskDiDi and Ant have been bellwethers for big tech in China. DiDi’s trouncing of Uber, which ended in the Chinese firm buying its rival’s operations in the country in 2016, showed that local groups could compete with global ones. Ant’s eye-watering valuation of $300bn in 2020 suggested that China would produce the world’s next generation of dazzling consumer-internet champions.
The “rectification”, as the authorities dubbed it, demonstrated the extent to which regulators were willing to exert control over large technology platforms. DiDi was eventually forced by Chinese regulators to delist in New York—an unprecedented move by authorities in Beijing. A relisting in Hong Kong was also blocked. Jack Ma, once an outspoken critic of bad regulation, has kept out of the public eye. Investors reacted to the tech purge with panic.
The end of the techlash is part of a concerted effort to revive confidence in China’s leadership, including that of Xi Jinping. Securities regulators have made concessions in recent months by allowing America’s accounting watchdog to review the internal books of American-listed Chinese firms, avoiding the delisting of some $900bn-worth of shares traded in New York.
But the new era for tech will be vastly different from the previous one, which was defined by rapid growth and unbridled expansion. Many companies have been selling businesses they bought in recent years. Entire internet-enabled industries, such as online education, have been destroyed and will not be coming back.
State control is set to increase in the coming years. Many firms have already sold small stakes to government investors. These “golden shares” often require the state to buy only 1% of a company and yet confer the right to appoint board members and veto important decisions. Shares in important subsidiaries of ByteDance, the owner of TikTok, and Weibo, a Twitter-like platform, are already held by a state investor linked to China’s cyberspace regulator.
Brasil Últimas Notícias, Brasil Manchetes
Similar News:Você também pode ler notícias semelhantes a esta que coletamos de outras fontes de notícias.
How can honest firms fight back against the rogues?As a business owner, when you pay for an online advert, you engage with consumers in good faith. Not all ‘firms’ do the same
Consulte Mais informação »
Watch law firms, not banks, to judge the City’s deep freeze\n\t\t\tLet our global subject matter experts broaden your perspective with timely insights and opinions you\n\t\t\tcan’t find anywhere else.\n\t\t
Consulte Mais informação »
The 15 best energy suppliers ranked as two Scottish firms among the 'worst'The ranking of UK energy firms by Which? put Scottish Power at the very bottom as SSE narrowly avoided the worst ranking.
Consulte Mais informação »
Chinese Oil Giants Expect Bumper Profits For 2022 On Spike In Prices | OilPrice.comChina’s largest state-controlled oil and gas firms on Thursday guided for a surge in net profits for 2022 as commodity prices jumped last year and Chinese firms doubled down on efforts to boost domestic production.
Consulte Mais informação »
Ministers consider Sage-style committee to veto China investmen to counter Beijing threatThe UK Government is drawing up plans to toughen its policy towards China after growing aggression from Beijing on multiple fronts 🔴 HugoGye and singharj
Consulte Mais informação »
High mortgage rates and rising inflation leaves lenders bracing for loan defaultsBanks expect default rates on mortgages, unsecured (personal) loans and business loans for small firms to all increase by the end of February
Consulte Mais informação »