Population Research Institute President Steve Mosher offers an analysis on ‘Fox Business Tonight’
Chinese companies are removing technology giant Alibaba’s search engine from their platforms after President Xi Jinping warned of a technological crackdown in the country, according to reports.
The move came after China withdrew in November the record $ 37 billion initial public offering from Alibaba’s financial technology affiliate, Ant Group, after facing regulatory scrutiny, the Financial Times reported.
It also comes after Chinese state-owned media company CCTV criticized Alibaba for displaying medical ads from untrusted sources, according to Reuters, but experts say neither the e-commerce domain nor its misleading ads led to China’s crackdown on the company. .
“The real reason behind the crackdown is … the conglomerate’s growing influence on various aspects of the lives of the Chinese people,” Weifeng Zhong, senior researcher at George Mason University’s Mercatus Center, told FOX Business.
| Ticker | Safety | Last | Change | Change % |
|---|---|---|---|---|
| BABYSITTER | ALIBABA GROUP HOLDING LTD | 227.19 | -3.10 | -1.35% |
He added: “Being able to influence and command a large population is the most critical monopoly power of the Chinese government and any challenge to it, even if unintentional, will not be tolerated. This is also why Li Ka-shing, Hong O Kong’s richest man is getting rid of his various Chinese businesses before Beijing even heavily intervenes in the Hong Kong system. “
BEIJING ASKS ALIBABA TO LEAVE ITS MEDIA ASSETS: WSJ
The leadership of the Chinese Communist Party said during a meeting on Monday that some technology companies “are growing inappropriately and are therefore at risk,” according to The Guardian. “It is a considerable problem that the current regulatory regime has failed to adjust.”
Alibaba did not immediately respond to a query from FOX Business.
The technology giant, often referred to as China’s Amazon, has a larger share of China’s e-commerce market than Amazon’s share of the United States’ e-commerce market. The CCP is apparently considering fining Alibaba $ 975 million for anti-competitive practices, eyeing its technology and media acquisitions in recent years, The Guardian reported.
JACK MA DE ALIBABA MAKES FIRST APPEARANCE LIVE IN THREE MONTHS ONLINE
China’s market regulator fined Alibaba and other companies last December for failing to seek approval for several deals.
| Ticker | Safety | Last | Change | Change % |
|---|---|---|---|---|
| AMZN | AMAZON.COM, INC. | 3,101.50 | +19.82 | + 0.64% |
The company told The Guardian in a statement that “the purpose” of such investments “is to provide technology support for upgrading its business and to generate commercial synergies with the core commercial businesses”.
“We do not intervene or engage in day-to-day operations or editorial decisions by companies,” said the company.
GET FOX BUSINESS ON THE MOVE BY CLICKING HERE
In February, China released anti-monopoly guidelines designed to crack down on anti-competitive practices in the Internet industry, such as signing exclusive deals with merchants and using subsidies to squeeze out competitors.
The country has banned a number of US-based technology giants such as Google and Facebook, and is now struggling with the expansion of Chinese technology companies that have enjoyed great success in their home country.
CLICK HERE TO READ MORE ABOUT FOX BUSINESS
Last week, China’s market regulator said it fined a dozen companies, including gaming company Tencent Holdings and Chinese search engine company Baidu Inc., for failing to disclose previous deals, while authorities step up anti-monopoly scrutiny. in the internet sector.
The companies were fined $ 77,000 each for failing to disclose previous investments, acquisitions or joint ventures, according to a statement from the State Administration of China for Market Regulation.
The Associated Press contributed to this report.