(Bloomberg) -- China’s top leader warned that Beijing will go after so-called “platform” companies that have amassed data and market power, a sign that the months-long crackdown on the country’s internet sector is only just beginning.
President Xi Jinping on Monday chaired a meeting of the communist party’s top financial advisory and coordination committee, ordering regulators to step up oversight of internet companies, crack down on monopolies, promote fair competition and prevent the disorderly expansion of capital, according to state broadcaster CCTV. Internet companies need to enhance data security and financial activities need to come under regulatory supervision, CCTV also reported.
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WNU Editor: Like the US, China's tech companies are incredibly wealthy and influential. And like most authoritarian countries, these institutions are perceived by the Chinese Communist leadership as a potential threat. The problem is that China needs these companies to grow and innovate if the country wants to be the dominant economic power in the world.
My prediction.
When given a choice between a threat to the power and economic benefits to its people, authoritarian governments priority will be to protect themselves. The decision to crack down on Hong Kong was made because Beijing perceived the city as a threat to its rule even though the economic costs were going to be severe. The same rule applies here. Beijing will crack down on these tech companies because they are perceived as a threat to their rule. Even though they are going to be heavy economic costs if they do so.
1 comment:
The reasoning is seemingly uncomplicated. Yet at least a 3rd of politicians, diplomats and others would get it wrong. Maybe north of 70%.
The CCP strategy might not be the best for them. But it is good enough and it minimizes risk to the CCP. There is no planning paralysis, no bleeding edge. Just good enough. Similar to Patton's "firstest with the mostest". The British Chain Home system was so primitive compared to the German's radar developments that they literally saw it on the radar equipment and dismissed it as electrical grid noise. It had been designed that way by its inventor to meet the key specification and being built as soon as possible instead of waiting for the best leading edge tech. The DoD acquisition folk could learn a lot from the British Chain Home System's development.
The CCP way is similar to fighting. Some commanders are so afraid of casualties that they hate to send people forward and have planning paralysis like Little Mac, the smartest guy in the room. In war the CCP probably won't always look for the ultimate elegant solution. they are willing to take casualties economic or military. But they will get the job done.
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