Beijing: The ruling communist party tightened political control over China’s internet giants and knocked on their wealth to pay their ambitions to reduce dependence on US and European technology.
The crackdown of anti-monopoly and data security from the end of 2020 has shaken the industry, which developed for two decades with a few regulations.
Investor drugs have knocked more than $ 1.3 trillion of the total market value of the Alibaba e-commerce platform, game and social media operators Tencent and other technology giants.
The party said the anti-monopoly enforcement would be a priority of up to 2025.
It was said that the competition would help create employment and improve living standards.
The Government of President XI Jinping seems to have tend to continue to take courses even if economic growth suffers, say business people, lawyers and economists.
The hard action reflects the public emphasis of XI about reviving the party’s “original mission” of the leading economic and social development, said Steve Tsang, a Chinese political specialist at the School of Oriental and African studies in London.
He said it could also help XI politically if, as expected, he pursued the term five years as a party leader.
Chinese leaders did not want to restore direct control of the economy but want private sector companies to harmonize with the powerful party plan, said Lester Ross, head of the Beijing Wilmerhale law firm office.
“What they worry about is a company that is too big and too independent from the party,” Ross said.
China curbs the political control of the internet giants in an effort to cut its dependence in the West
