Xi emphasized the need to regulate “platform” companies to maintain social stability during a meeting of China’s leaders on Monday, according to state news agency Xinhua. The phrase “platform company” in China usually refers to companies that offer online services to customers.
The Chinese president added that it is necessary to strengthen regulation of the internet sector, according to a summary of his statements published by Xinhua. State media reported that “all financial activities must be included in financial regulations”, according to Xi.
The published comments mark Xi’s first words on the subject since December, when he described antitrust oversight of the digital economy as one of China’s most important priorities. for 2021.
Although Xi did not single out any companies by name, his decision to double regulatory efforts could mean more problems for big tech companies like Alibaba (BABYSITTER) and its financial affiliate Ant Group, which has already struggled to increase scrutiny.
Ant, which owns the popular digital payments app Alipay and has strong interests in online investing, insurance and consumer loans, was forced to file a major IPO last November and has since been ordered to reshape its business.
Beijing has long been concerned that the influence of technology companies on the financial sector makes this sector vulnerable – Ant, for example, now commands more than half of the mobile payments market in China – and authorities are looking ways to control them.
Soon, regulators may demand that Ant behave more like a traditional Chinese bank than a technology company, suggesting strict restrictions on its business. The company is also dealing with a recent corporate restructuring: CEO Simon Hu resigned last week for personal reasons.
The next big blow for Alibaba, founded by Jack Ma, may not be far off. Their actions have been under pressure since The Wall Street Journal reported last Thursday that the company was facing a record fine for alleged monopoly behavior. Alibaba declined to comment to CNN Business.
Tencent’s shares have also recently dropped with rumors that it may be the next target for regulators.
Regulators have already questioned executives at Tencent and Pinduoduo, punished Bytedance and Baidu with fines for alleged monopolistic behavior in corporate acquisitions and launched new rules that could govern operations at many technology companies.
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