China targets Chinese companies

Chinese communist party (CCP) has continued to tighten tech giants and e-commerce giants by implementing new rules. It’s very clear China issues new rules targeting tech firms.

CCP wants to check monopoly of some big companies after Jack Ma criticized state regulatory approvals last year. The rules are likely to pressure firms such as Alibaba, JD.com, Ant Group and Tencent which dominate e-commerce in China.

China’s market regulator has released new set of anti-monopoly guidelines, targeting internet platforms. These are aim to tighten existing restrictions for the tech giants like Huawei, Alibaba, Baidu and Tencent. New guidelines will prohibit forcing merchants between the country’s top internet players. This will put pressure on not only e-commerce sites but also payment services like Alipay and WeChat pay. New restrictions will stop companies from price-fixing and restricting technologies.

It also prohibits companies from using data and algorithms to manipulate the market. Chinese government feels new rules will stop monopolistic behavior in the platform economy and safeguards fair competition in the market. China’s Politburo, the top decision-making body of the Communist Party, pledged in a meeting at the end of last year to strengthen anti-monopoly efforts in 2021. Less than two weeks after the meeting, China kicked off an investigation into Alibaba Group Holding Ltd. in December for allegedly monopolistic practices.

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