Hong Kong News

Nonpartisan, Noncommercial, unconstrained.
Saturday, Feb 24, 2024

China wraps up two-year tech crackdown, top official says

China wraps up two-year tech crackdown, top official says

Alibaba, Tencent, Didi and Meituan can expect normalized supervision
China's more than two-year clampdown on its sprawling internet sector is coming to an end, according to a top central bank official.

The special campaign to rectify 14 internet platform companies' financial businesses is basically complete with few remaining issues to resolve, said Guo Shuqing, Chinese Communist Party secretary of the People's Bank of China (PBOC).

Further supervision of the sector will be normalized, and support will be given to help platform companies play a bigger role in job creation and global competition, said Guo, who is also chairman of the China Banking and Insurance Regulatory Commission (CBIRC).

The statement was the first signal from a top regulatory official that the government is winding down a massive clampdown that affected the country's biggest internet companies including Alibaba Group and Tencent Holdings.

Beijing took aim at the country's most valuable companies starting in October 2020, warning that platform operators might abuse their power and undermine competition. The crackdown later engulfed everything from e-commerce to ride-hailing and online education. It led to the suspension of Ant Group's blockbuster initial public offering and the delisting of ride-hailing giant Didi Global from New York only five months after its debut.

Over the two years, regulators summoned top tech companies for several meetings. They forced e-commerce leader Alibaba to pay a record fine and food-delivery giant Meituan to lower the fees it charges restaurants for delivery and improve the treatment of its drivers. The tough regulatory posture along with rising economic headwinds spurred rounds of sell-offs of China tech stocks, wiping out as much as 70% of their market value in Hong Kong and the U.S.

Softening signs first emerged in the spring of 2022 when Vice Premier Liu He said in a March meeting that efforts to "rectify" internet platform companies should be completed "as soon as possible" to promote their stable and healthy growth.

In May, the PBOC backed up Liu's remark, saying it would adopt normalized supervision of internet platform companies' financial activities and would support the sector's healthy development.

At the Central Economic Work Conference in December, which set out China's 2023 economic policy agenda, top leaders offered a clearer pledge to support internet platform enterprises, with an explicit call for the rapid development of the digital economy, normalization of sector regulation, and support for the role of platform enterprises in economic growth, job creation and global competition.

Caixin learned from multiple sources that the last regulatory meeting convened by the central bank with 14 leading platform companies was held Sept. 20, during which officials indicated that no more restrictive policies would be issued for the sector.
Newsletter

Related Articles

Hong Kong News
0:00
0:00
Close
It's always the people with the dirty hands pointing their fingers
Paper straws found to contain long-lasting and potentially toxic chemicals - study
FTX's Bankman-Fried headed for jail after judge revokes bail
Blackrock gets half a trillion dollar deal to rebuild Ukraine
Steve Jobs' Son Launches Venture Capital Firm With $200 Million For Cancer Treatments
Google reshuffles Assistant unit, lays off some staffers, to 'supercharge' products with A.I.
End of Viagra? FDA approved a gel against erectile dysfunction
UK sanctions Russians judges over dual British national Kara-Murza's trial
US restricts visa-free travel for Hungarian passport holders because of security concerns
America's First New Nuclear Reactor in Nearly Seven Years Begins Operations
Southeast Asia moves closer to economic unity with new regional payments system
Political leader from South Africa, Julius Malema, led violent racist chants at a massive rally on Saturday
Today Hunter Biden’s best friend and business associate, Devon Archer, testified that Joe Biden met in Georgetown with Russian Moscow Mayor's Wife Yelena Baturina who later paid Hunter Biden $3.5 million in so called “consulting fees”
'I am not your servant': IndiGo crew member, passenger get into row over airline meal
Singapore Carries Out First Execution of a Woman in Two Decades Amid Capital Punishment Debate
Spanish Citizenship Granted to Iranian chess player who removed hijab
US Senate Republican Mitch McConnell freezes up, leaves press conference
Speaker McCarthy says the United States House of Representatives is getting ready to impeach Joe Biden.
San Francisco car crash
This camera man is a genius
3D ad in front of Burj Khalifa
Next level gaming
BMW driver…
Google testing journalism AI. We are doing it already 2 years, and without Google biased propoganda and manipulated censorship
Unlike illegal imigrants coming by boats - US Citizens Will Need Visa To Travel To Europe in 2024
Musk announces Twitter name and logo change to X.com
The politician and the journalist lost control and started fighting on live broadcast.
The future of sports
Unveiling the Black Hole: The Mysterious Fate of EU's Aid to Ukraine
Farewell to a Music Titan: Tony Bennett, Renowned Jazz and Pop Vocalist, Passes Away at 96
Alarming Behavior Among Florida's Sharks Raises Concerns Over Possible Cocaine Exposure
Transgender Exclusion in Miss Italy Stirs Controversy Amidst Changing Global Beauty Pageant Landscape
Joe Biden admitted, in his own words, that he delivered what he promised in exchange for the $10 million bribe he received from the Ukraine Oil Company.
TikTok Takes On Spotify And Apple, Launches Own Music Service
Global Trend: Using Anti-Fake News Laws as Censorship Tools - A Deep Dive into Tunisia's Scenario
Arresting Putin During South African Visit Would Equate to War Declaration, Asserts President Ramaphosa
Hacktivist Collective Anonymous Launches 'Project Disclosure' to Unearth Information on UFOs and ETIs
Typo sends millions of US military emails to Russian ally Mali
Server Arrested For Theft After Refusing To Pay A Table's $100 Restaurant Bill When They Dined & Dashed
The Changing Face of Europe: How Mass Migration is Reshaping the Political Landscape
China Urges EU to Clarify Strategic Partnership Amid Trade Tensions
The Last Pour: Anchor Brewing, America's Pioneer Craft Brewer, Closes After 127 Years
Democracy not: EU's Digital Commissioner Considers Shutting Down Social Media Platforms Amid Social Unrest
Sarah Silverman and Renowned Authors Lodge Copyright Infringement Case Against OpenAI and Meta
Why Do Tech Executives Support Kennedy Jr.?
The New York Times Announces Closure of its Sports Section in Favor of The Athletic
BBC Anchor Huw Edwards Hospitalized Amid Child Sex Abuse Allegations, Family Confirms
Florida Attorney General requests Meta CEO's testimony on company's platforms' alleged facilitation of illicit activities
The Distorted Mirror of actual approval ratings: Examining the True Threat to Democracy Beyond the Persona of Putin
40,000 child slaves in Congo are forced to work in cobalt mines so we can drive electric cars.
×