Beijing –
Beijing’s crackdown on China’s tech sector, which began in late 2020, appears to have softened. It is marked by the return Jack Ma to China after previously being in foreign countries.
Since Jack Ma’s speech criticizing China’s financial regulators, the Chinese Government, under the command of President Xi Jinping, put hard pressure on technology companies. Many fines were imposed, including on Alibaba and Tencent. There is a guess Xi Jinping do not want the companies and their leaders to be too dominant and powerful.
Well now there are signs that the Chinese government is starting to soften. In one of the signs, Alibaba announced a major reorganization, dividing the company into six business units, to make it bigger and more attractive to investors.
In the past 2 years, the Chinese government has frequently railed against the expansion of tech companies that have grown into huge conglomerates. With Alibaba being broken up and even being able to do its own IPO, this indicates a green light from the Chinese government.
Alibaba’s restructuring isn’t the only sign Xi Jinping is easing scrutiny of the tech sector. Jack Ma, the founder of Alibaba, returned to China and made his first public appearance in months.
Some believe that Jack Ma was the trigger for China’s crackdown after he criticized China’s financial regulators in October 2020. Days later, Ant Group, Alibaba’s financial technology affiliate controlled by Ma, called off the IPO.
Jack Ma’s reappearance in Hangzhou, where Alibaba’s headquarters are located, is seen as another sign Beijing is starting to be more positive towards the tech sector and entrepreneurs.
“Jack Ma didn’t show up in Hangzhou because he was tired of traveling around. I think it’s well orchestrated and fits the government’s campaign to show they’re easing pressure on the private sector and welcome to the rest of the world,” said Stephen Roach, a senior research fellow at Yale University.
Watch Video “Jack Ma finally returned to China“
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