As Chinese authorities take action against monopolistic behaviour and the “disorderly expansion of capital”, companies like Alibaba and founder Jack Ma are finding themselves falling out of favour not only with the authorities but with the public. The latest development is the name change for Hupan University, established by Ma, where the motivations of the institution have come under question. Zaobao correspondent Chen Jing looks at the issue.
Fintech
Economy
Alibaba was fined a record 18.2 billion RMB after an anti-monopoly probe. Commentator Yuan Guobao observes that Alibaba is not the only tech giant in China accused of monopolistic practices; for that matter, the “big four” companies in the US have also come under the spotlight. All this suggests that on a global level, tech companies must be prepared to adhere to a strict regulatory environment, even as they break new ground.
Economy
Alibaba was recently slapped with a 18.2 billion RMB fine and has acquiesced to state authorities’ demands for “rectification''. Commentator Yuan Guobao asserts that Alibaba’s “choose one out of two” policy of tying online merchants down to exclusive deals was already sounding alarm bells. Jack Ma’s politically incorrect speech at the Shanghai Bund Summit may have been a fire starter, but the tech giant’s troubles have been brewing for quite some time.
Economy
Amid punishments meted out to Chinese private enterprises such as Alibaba, President Xi Jinping’s recent visit to various private enterprises was seen as a way for the Chinese government to assure companies that the state would still be supporting them. However, the status of private enterprises has always been a little fuzzy in China. Companies feel that they are at a disadvantage when competing with state-owned enterprises and may be reined in when they grow too large. Zaobao associate editor Han Yong Hong looks for a way out.
Economy
Chinese author and fintech researcher Yang Jun says that while the fintech industry has been booming over the past few years, not everybody seems to know that it is really about using technology to complement finance, which remains the foundation. Knowing this distinction will help one better understand the current push to impose regulations on the sector.
Economy
With the pandemic showing little signs of slowing and as countries around the world shift away from the traditional economy, academic Pei Sai Fan notes that this is an opportune time for Asia to boost its digital economic sector. Namely, there will be the opportunity to consider building a more integrated Asian digital economy and to promote Asian digital trade and a common digital currency.
Economy
Some are of the opinion that an e-RMB will encourage the internationalisation of the RMB as a major global currency. NUS academic Duan Jin-Chuan argues that whether the RMB is digitalised or not is not the key issue; internationalisation of the RMB really depends on demand for and attractiveness of the RMB as a trading and value storage tool.
Economy
The writing was on the wall, but what changes has fintech company Ant Group’s recent IPO suspension sped along for the online microfinance industry? Zaobao correspondent Chen Jing takes a closer look.