China has begun its crackdown on its own wanna-be corpo-statees such as have emerged in the US primarily, but in other nation-states as well, mostly in Europe. These corpo-states are the new big biz giants of current year, Big Tech, especially Social Media and eCommerce Sites. But while the big tech companies outside of China celebrate the taking down of some of theri competitors, they should pay attention to how China is treating their own companies to consider maybe potentially giving up on attempting to dance with the CCP for the promise of gaining access to that massive market.
A Chinese Warning for U.S. Tech
From www.wsj.com
2021-08-15 17:08:00
Excerpt:
Big U.S. tech companies must be watching with glee as China cracks down on its homegrown technology companies. They are thrilled not only because they are seeing potential global competitors in e-commerce, music licensing, ride sharing, food delivery and more weakened, but because they now have a powerful card to play at home.
It started last October when Jack Ma, founder of Alibaba and its affiliate Ant Financial, complained at the Shanghai Bund Summit that regulators were too cautious: “There is no innovation in this world without risk.” He also said Chinese banks have a pawnshop mentality, requiring collateral before they lend, unlike Ant, which was about to go public, which uses algorithms to assess creditworthiness. Mr. Ma’s criticisms were correct, but he angered the powers that be. Even though shares for Ant Financial’s initial public offering were 870 times oversubscribed, the Shanghai Stock Exchange effectively canceled the IPO in early November….
