Jack Ma’s companies, Alibaba Group Holding Ltd. to Tencent Holdings Ltd. invested billions in overseas acquisitions. That includes developing technologies and apps that challenged Western rivals, with little or no state interference.
U.S action on Jack Ma Alibaba and his other companies
U.S. authorities are now debating whether to halt investments in Jack Ma Alibaba and Tencent, where their shares are most widely held by global investors. Then, President Donald Trump signed an executive order that ban transactions with eight Chinese applications including Tencent’s WeChat Pay and Ant’s Alipay. He cites concerns that Beijing will have access to the data collected by the applications and it will harm the privacy and security of Americans.
Beijing has shifted to fundamentally overtake Jack Ma Alibaba and his trillion-dollar internet business. This happens after the demolishing of Ant’s $35 billion public offerings in November, which is a record-breaking debut that once was the entrepreneur’s top achievement. Since then, Jack Ma has been missing since November and his absence spurred speculation of his whereabouts.
The action against Ma showed that Beijing feels hearten to risk international fallout from measures meant to bring challenges. Moreover, Xi has previously disobeyed threats of U.S. sanctions to impose sweeping national security legislation on the former British colony of Hong Kong.
Furthermore, The U.S. has expressed concerns about the Chinese government’s influence over private sectors. That includes justifying its effort to force ByteDance Ltd. to sell the American share of its TikTok social network.
Besides, Ant has also asserted its independence from the Chinese government, like Huawei. A private sector company and Chinese state-owned funds own non-controlling minority stakes, they do not participate in company management.
What Xi Jinping hope for
It is actually long asserted that no Chinese entrepreneur or tech companies are beyond the reach of Xi Jinping. However, recent efforts to exert government influence over companies and take part in the business landscape have reached new levels.
Xi requires business executives to achieve tactical goals like the “dual-circulation” economic plan focused on developing secure supply chains. Besides, the recovery of the world’s second-largest company seems to expand even as global growth remains sluggish.
Xi has called on executives from the tech industry to help the post-pandemic economic recovery. He said that entrepreneurs must have a strong sense of mission and responsibility for the country. Moreover, entrepreneurs also need to align their businesses’ development with the wellbeing of the nation and the people.
Weeks later, the party executed plans to secure control over the private industry by extending its United Front networking operations. The CCP has also doubled down on its techno-nationalist initiatives and secured its control over tech companies under President Xi.
More Information About: