If Elon Musk disappeared from view for more than two months – in his most unbearable phase, I’m sure we all want that to happen – investors would send a search team. Where is the figurehead who took your company and its actions to unprecedented heights?
His Chinese counterpart, Jack Ma, disappeared from view for more than two months, with his company under investigation by Chinese authorities. There is no news of his whereabouts. Here in Asia, we are wondering where the poster boy businessman from China went.
There are rumors, and most likely, that Ma was warned not to leave China. He may well be keeping his head under the railings on his own. Whatever the case, the situation is so serious and politically charged that the Beijing government is now censoring news in the Chinese media about the antitrust investigation into Ma’s baby.
Ma, the co-founder and figurehead of e-commerce giant Alibaba Group Holding (BABA), was last seen on October 31, when he participated in the gala extravaganza broadcast live to kick off China’s spending festival, ” Double 11. “That was exactly a week after he gave a speech at a financial conference in Shanghai, in which he criticized China’s banking regulators and industry, calling state-owned banks for having a” pawnshop mentality “.
Bad movement. Several highly influential bankers and regulators were present, spitting in their Nongfu Spring bottled water. Behind the scenes, we heard, Chinese President Xi Jinping was furious.
Xi had already met privately a few years ago with Ma and the founder of video game maker and app operator WeChat Tencent Holdings (TCEHY), Pony Ma (who is not related), to remember China’s two wealthiest people and most famous executives that their companies operate only under the command of the Communist Party. Xi, he didn’t need to remind you, he’s the only sheriff in town.
Days after that speech in Shanghai, Ma and the two main executives of Ant Group, the company that Ma founded to process payments on Alibaba’s websites, were asked about their free circulation financial model, which extends consumer loans to buyers and offers a set of third party financial services. On November 3, Ant was barred from listing its shares for the first time, just two days ahead of what was scheduled at $ 37 billion to be the largest initial public offering in world history.
President Xi personally annulled the IPO, according to Wall Street Newspaper. This sounds true, since the Shanghai stock exchange had already liquidated the offer before ordering it to be withdrawn at the last minute. Xi “showed less and less tolerance” for large private companies that control capital and influence – and arrogant executives who defy the iron rule of the man dubbed “Emperor for Life” in China.
Chinese regulators are now looking to restructure and possibly separate Ant Group, which runs the ubiquitous digital wallet application Alipay. They are also concerned about business practices not only at Alibaba, but also at its rivals, such as JD.com (JD) and Pinduoduo (PDD). Chinese e-commerce sites have a notorious “1 of 2” policy for many merchants, which forces them to agree to sell their products only through a platform website.
Ant is kicking the other shin too. U.S. President Donald Trump is doing one of his last actions in office, an executive order on Tuesday to ban U.S. individuals and companies from trading with Alipay and seven other Chinese apps, including WeChat Pay and QQ Wallet from Tencent. Trump said the apps are capable of capturing “vast areas” of users’ personal and confidential information, making them a threat to national security.
Ma suddenly meets a politician persona non grata. The Chinese government’s propaganda arm issued a directive to the media to follow the official line of investigation on Alibaba and not to engage in any kind of analysis of events without permission, the Financial Times reports today, citing two people who read the order.
Several online blog posts discussing Ma’s whereabouts have been censored and taken down, according to the FT. In addition, an online publication supported by Alibaba that published an editorial warning about the excessive punishment of Chinese technology companies was forced to close operations for a month.
Ma did not appear on his own TV show in November. He personally listened to suggestions from entrepreneurs seeking to become African business heroes, on the show with that name. But when the final episode aired, he was nowhere, his place was taken by an Alibaba executive. An Alibaba spokesman said “Jack Ma had to miss the final due to a scheduling conflict.”
Ma is not on the official list of people prevented from leaving China. But Bloomberg reports that in December he was told not to leave the country. A hashtag about him being banned from leaving has been deleted by censors from the Chinese Weibo (WB) app, similar to Twitter.
Musk may be the richest man in America and, in fact, now in the world. But Ma, who loves the spotlight, is his direct counterpart in China. His $ 65.6 billion fortune makes him the richest man there. Ma stepped down as CEO of Alibaba in September 2019, but his shadow over the company is long, while he is a mythical figure among Chinese investors chasing the next startup “unicorn” that will transform into a billion-dollar company. dollars.
There is a danger for the Communist Party to face Ma. Although political rights do not exist in China, personal and commercial property rights are well protected. Putting Alibaba in the party’s sights will scare other successful businessmen, many of whom are already trying to hide large chunks of their wealth abroad, from the hands of the Communist Party.
Still, the Communist Party will usually find a way to bring you down if they want you to fall. Allegations of bribery and corruption are the normal charges raised.
Temporarily, it seems, they have already fulfilled their wish with Mr. Ma. I bet he is silent after opening his mouth in Shanghai has put him in so many problems in Shanghai. But when and where will it appear next ?!
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