Why is China cracking down on its own tech companies?

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The Politicus
Aug 20, 2021 12:09 AM 0 Answers
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Why is China cracking down on its own tech companies?

Beijing’s regulatory assault on China’s technology industry has lopped
$87bn off the net worth of the sector’s wealthiest tycoons since the
start of July, hitting the fortunes of magnates such as Tencent’s Pony
Ma and Pinduoduo’s Colin Huang.

The combined net worth of the two dozen Chinese billionaires in tech
and biotechnology whose holdings are tracked by Bloomberg has dropped
16 per cent since ride-hailing platform Didi Chuxing went public in
the US at the end of June, according to Financial Times calculations.

https://www.ft.com/content/7e6f9a08-37be-4ab3-ae15-953533ab33b5

A lot of people said tech monopolies are good because they help the U.S. fend off against international competition, so it seems like it's partly the reason why the U.S. stopped cracking down on big tech.

The meaning was clear, and echoed points Zuckerberg made during one of
his previous appearances before Congress: Big Tech is essential to
fight Chinese platforms like TikTok that can spy on Americans and
whose opaque algorithms could be used to conduct malicious activities
like censoring political content and potentially impacting an
election.

https://promarket.org/2020/08/07/tech-monopolies-are-the-reason-the-us-now-has-a-tiktok-problem/

The question now is why China is doing the exact opposite of what the U.S. is doing and killing its own stock market in the process?

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  • August 20, 2021