Steve Mosher, President of the Population Research Institute, presents analysis on ‘Fox Business Tonight’
Chinese companies are taking technology giant Alibaba’s search engine off their platforms after President Xi Jinping reportedly warned of a technological crackdown in the country.
The move comes after China withdrew its initial $ 37 billion public offering from Alibaba’s subsidiary Ant Group, Ant Group, in November, after The Financial Times investigated.
It also comes after Chinese state media company CCTV criticized Alibaba for displaying medical ads from unreliable sources, according to Reuters, but experts do not believe its dominance over e-commerce or its misleading ads led China to suppress the company.
“The real reason for the repression is … the increasing influence of the conglomerate on various aspects of Chinese people’s lives,” Weifeng Zhong, senior research fellow at the Mercatus Center at George Mason University, told FOX Business.
| Ticker | Safety | Last | Alter | Alter% |
|---|---|---|---|---|
| BABY | ALIBABA GROUP HOLDING LTD | 227.19 | -3.10 | -1.35% |
He added: “The influence of a large population and the command over it is the main monopolistic power of the Chinese government, and any challenge to it, even if unintentional, will not be tolerated. This is also the reason why Li Ka-shing, Hong Kong’s richest man, shut down his various enterprises from China, even before Beijing intervened heavily in the Hong Kong system. ‘
BEIJING ASK ALIBABA TO HIS MEDIABATES: LWJ
Chinese leaders of the Communist Party said at a Monday meeting that some technology enterprises “are growing in an inappropriate way and therefore carry risks,” according to The Guardian. “It’s a big problem that the current regulatory regime has not been able to succeed.”
Alibaba did not immediately respond to a request from FOX Business.
The technology giant, mostly called China’s Amazon, owns a larger share of the Chinese e-commerce market than Amazon’s share of the US e-commerce market. The CCP is apparently considering paying Alibaba a $ 975 million fine for competing practices, with a view to acquiring technology and media over the past few years, reports The Guardian.
ALIBABA’S JACK MOTHER ONLINE ONLINE FIRST LIVE IN THREE MONTHS
China’s market regulator fined Alibaba and other companies last December for failing to seek approval for several transactions.
| Ticker | Safety | Last | Alter | Alter% |
|---|---|---|---|---|
| AMZN | AMAZON.COM, INC. | 3 101.50 | +19.82 | + 0.64% |
The company said in a statement to The Guardian that “the purpose” of such investments is to provide technological support for their business upgrades and to achieve commercial synergies with core operations. “
“We do not intervene or become involved in the day-to-day operations of the companies or editorial decisions,” the company said.
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In February, China announced anti-monopoly guidelines aimed at curbing anti-competitive practices in the Internet industry, such as concluding exclusive agreements with traders and using subsidies to express competitors.
The country has banned a number of US giant technologies such as Google and Facebook and is now struggling with the expansion of Chinese technology companies that are seeing great success in their home country.
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Last week, the Chinese regulator in China said it had fined a dozen companies, including gaming company Tencent Holdings and Chinese search engine company Baidu Inc., for failing to disclose previous transactions as authorities monopolized the Internet sector sharpened.
The companies were each fined $ 77,000 for failing to disclose previous investments, acquisitions or joint ventures, according to a statement from the Chinese state administration for market regulation.
The Associated Press contributed to this report.