Chinese President Xi Jinping attends the World Economic Forum WEF Virtual Event of the Davos Agenda and delivers a particular deal with through video hyperlink in Beijing, capital of China, Jan. 25, 2021.
Li Xueren | Xinhua News Agency | Getty Images
GUANGZHOU, China — Chinese President Xi Jinping referred to as for the acceleration of legal guidelines and guidelines for so-called “platform” firms, an indication that Beijing will additional crack down on the nation’s expertise giants.
“Some platform companies’ development is not standard and risks exist,” Xi mentioned in an deal with to China’s high financial committee, in response to state broadcaster CCTV.
Xi mentioned rules have to “fill in gaps and loopholes in rules” for such platform firms.
He mentioned that regulators have to step up oversight of those firms, stop monopolies, promote honest competitors and cease disorderly growth of capital. Xi additionally mentioned that regulators should create a “data property rights system.”
So far regulators have made quite a few feedback about guidelines on expertise firms. But the most recent focus comes straight from China’s high leaders, indicating there may be more likely to be additional motion taken towards the non-public tech giants.
Beijing has to this point cracked down on billionaire Jack Ma’s empire. Firstly, Ant Group, Alibaba’s monetary affiliate, was forced to halt its $34.5 billion initial public offering in Hong Kong and Shanghai. Ant cited “significant issues such as the changes in financial technology regulatory environment” for the cancellation.
Alibaba was additionally slapped with a fine in December for not reporting earlier offers correctly to regulators.
There are actually indicators that regulators’ crosshairs may give attention to different expertise companies. Bloomberg reported on Monday that regulators may now flip their sights to Tencent’s monetary expertise enterprise.