Xi stressed the need to regulate “platform” companies to maintain social stability at a meeting of Chinese leaders on Monday, according to the state-owned Xinhua News Agency. The phrase ‘platform company’ in China typically refers to companies that provide online services for customers.
The Chinese president added that there was a need to strengthen regulation of the internet sector, according to a summary of his comments published by Xinhua. State media reported that “all financial activities should be included in financial regulation,” Xi said.
The published comments mark Xi’s first words on the topic since December, when he described antitrust surveillance of the digital economy as one of China’s top priorities.before 2021.
While Xi didn’t name any company, his decision to redouble regulatory efforts could pose more problems for big tech companies such as AlibabaBABA and its financial partner Ant Group, who are already grappling with increased scrutiny.
Ant, who owns the popular digital payments app Alipay and has massive stakes in online investing, insurance and consumer lending, was forced to suspend a major IPO last November and has since been ordered to overhaul his business.
Beijing has long been concerned that the influence technology companies have on the financial sector makes the industry vulnerable – Ant, for example, now controls more than half of the mobile payments market in China – and officials are looking for ways to leverage them. to keep a check.
Regulators may soon be requiring Ant to act more like a traditional Chinese bank than a technology company, suggesting that his operations are strictly controlled. The company is also dealing with a recent corporate shake-up: CEO Simon Hu resigned late last week for personal reasons.
The next big blow to Alibaba, founded by Jack Ma, may not be far off. Its shares have since been under pressureThe Wall Street Journal reported on Thursday that the company was facing a record fine for alleged monopolistic behavior. Alibaba declined to comment on CNN Business.
Tencent shares have also fallen recently following rumors that it could be the next targetregulators.
Regulators have already questioned executives at Tencent and Pinduoduo, sanctioned Bytedance and Baidu with fines for alleged monopolistic behavior in corporate takeovers, and enacted new rules that could control the operations of many tech companies.
