CHINA TIGHTENS POLITICAL CONTROL OF INTERNET GIANTS
AppleMagazine|Ocotber 08, 2021
The crackdown reflects Xi Jinping’s emphasis on reviving the party’s “original mission” of leading economic and social development.
The ruling Communist Party is tightening political control over China’s internet giants and tapping their wealth to pay for its ambitions to reduce reliance on U.S. and European technology.

Anti-monopoly and data security crackdowns starting in late 2020 have shaken the industry, which flourished for two decades with little regulation. Investor jitters have knocked more than $1.3 trillion off the total market value of e-commerce platform Alibaba, games and social media operator Tencent and other tech giants.

The party says anti-monopoly enforcement will be a priority through 2025. It says competition will help create jobs and raise living standards. President Xi Jinping’s government seems likely to stay the course even if economic growth suffers, say businesspeople, lawyers and economists. “These companies are world leaders in their sectors in innovation, and yet the leadership is willing to squash them all,” said Mark Williams, chief Asia economist for Capital Economics.

The crackdown reflects Xi’s public emphasis on reviving the party’s “original mission” of leading economic and social development, said Steve Tsang, a Chinese politics specialist at the School of Oriental and African Studies in London. He said it could also help Xi politically if, as expected, he pursues a third five-year term as party leader.

Chinese leaders don’t want to reimpose direct control of the economy but want private sector companies to align with ruling party plans, said Lester Ross, head of the Beijing office of law firm WilmerHale.

“What they are worried about is companies getting too big and too independent of the party,” said Ross.

Chinese internet companies and their billionaire founders, including Alibaba Group’s Jack Ma and Tencent Holdings’ Pony Ma, are among the biggest global success stories of the past two decades. Alibaba is the biggest e-commerce company, while Tencent operates the popular WeChat messaging service.

Continue reading your story on the app

Continue reading your story in the magazine

MORE STORIES FROM APPLEMAGAZINEView All

‘Buy Now, Pay Later' Catches on Just in Time for Holidays

As Americans shop for the holidays, they will likely see a swarm of offers to get their gifts now but pay for them later in fixed monthly installments.

6 mins read
AppleMagazine
December 03, 2021

Health The growing influence of Apple on healthcare

In a 2019 interview with Mad Money’s Jim Cramer, Apple CEO Tim Cook said: “If you zoomed out into the future, and you look back, and you ask the question, ‘What was Apple’s greatest contribution to mankind?’” After a short pause, he answered his own question: “It will be about health.” Two years on, his vision is already becoming a reality for the company.

5 mins read
AppleMagazine
December 03, 2021

COLLINS DICTIONARY PICKS NFT AS WORD OF THE YEAR 2021

Collins Dictionary has chosen the term NFT as its word of the year after surging interest in the digital tokens that can sell for millions of dollars brought it into the mainstream.

1 min read
AppleMagazine
December 03, 2021

NEW TWITTER CEO STEPS FROM BEHIND THE SCENES TO HIGH PROFILE

Newly named Twitter CEO Parag Agrawal has emerged from behind the scenes to take over one of Silicon Valley’s highest-profile and politically volatile jobs.

2 mins read
AppleMagazine
December 03, 2021

COGNIZANT CEO DISCUSSES FIERCE BATTLE FOR TECHNOLOGY TALENT

Digital services have become more important than ever since the pandemic began in early 2020, and that’s meant big business for major technology companies.

3 mins read
AppleMagazine
December 03, 2021

NISSAN INVESTING IN ELECTRIC VEHICLES, BATTERY DEVELOPMENT

Nissan said this week it is investing 2 trillion yen ($17.6 billion) over the next five years and developing a cheaper, more powerful battery to boost its electric vehicle lineup.

2 mins read
AppleMagazine
December 03, 2021

MISSISSIPPI UNVEILS MOBILE ID PROGRAM: AN APP FOR PHONES

Mississippi is unveiling a new app that’s designed to store someone’s driver license on their phone.

2 mins read
AppleMagazine
December 03, 2021

OUTDOOR DECORATING TRENDS: NATURAL, COZY, SUSTAINABLE

Home, as we know, has become more central to many of us during the pandemic, and that means outdoors as well as in. This holiday season, designers and retailers have suggestions for updating window, door and yard decorations.

4 mins read
AppleMagazine
December 03, 2021

OMICRON UNRAVELS TRAVEL INDUSTRY'S PLANS FOR A COMEBACK

Tourism businesses that were just finding their footing after nearly two years of devastation wrought by the COVID-19 pandemic are being rattled again as countries throw up new barriers to travel in an effort to contain the omicron variant.

5 mins read
AppleMagazine
December 03, 2021

SPACE JUNK FORCES SPACEWALK DELAY, TOO RISKY FOR ASTRONAUTS

NASA called off a spacewalk Tuesday because of menacing space junk that could puncture an astronaut’s suit or damage the International Space Station.

1 min read
AppleMagazine
December 03, 2021
RELATED STORIES

CHINA CLEARS BOEING 737 MAX TO FLY AGAIN

China’s aviation regulator cleared the Boeing 737 Max on Thursday to return to flying with technical upgrades more than two years after the plane was grounded worldwide following two fatal crashes.

2 mins read
Techlife News
Techlife News #527

JAPAN, VIETNAM LOOK TO CYBER DEFENSE AGAINST CHINA

Japan and Vietnam signed a cybersecurity agreement as the two Asian nations rapidly step up their military ties amid concerns over China’s growing assertiveness.

2 mins read
Techlife News
27, November 2021

THE AUTOCRATS ARE WINNING

If the 20th century was the story of liberal democracy’s progress toward victory over other ideologies— communism, fascism, virulent nationalism— the 21st century is, so far, a story of the reverse.

10+ mins read
The Atlantic
December 2021

Xi's Great Moderation

The Chinese leader wants to downsize the real estate sector, even if it means sacrificing economic growth

4 mins read
Bloomberg Businessweek
November 22 - 29, 2021

Fortnite Hits The Wall

○ China wants kids playing fewer video games, which is bad news for the companies making them

6 mins read
Bloomberg Businessweek
November 22 - 29, 2021

Strongmen? Us?

Don’t let their confidence fool you: Xi, Putin, and other authoritarians are increasingly vulnerable at home

6 mins read
Bloomberg Businessweek
November 22 - 29, 2021

HOW TO DEAL WITH ANGER AND ENEMIES

In their ongoing dialogues, THEOPHILE THE ELDER and THEO THE YOUNGER continue to explore aspects of human behavior and self-development. Here they discuss some strategies for dealing with enemies, injustice, and managing anger.

6 mins read
Heartfulness eMagazine
November 2021

YAHOO PULLS OUT OF CHINA, CITING ‘CHALLENGING' ENVIRONMENT

Yahoo Inc. said this week it has pulled out of China, citing an increasingly challenging operating environment.

2 mins read
Techlife News
Techlife News #523

The Real PayoffFrom China's Covid Vaccines

Its drugmakers hope exports of coronavirus shots will lead to sales of inoculations for other diseases

5 mins read
Bloomberg Businessweek
November 08, 2021

US INTEL WARNS CHINA COULD DOMINATE ADVANCED TECHNOLOGIES

U.S. officials issued new warnings about China’s ambitions in artificial intelligence and a range of advanced technologies that could eventually give Beijing a decisive military edge and possible dominance over health care and other essential sectors in America.

2 mins read
Techlife News
October 30, 2021