Why is China cracking down on its own tech companies?
Beijing’s regulatory assault on China’s technology industry has lopped $87bn off the net worth of the sector’s wealthiest tycoons since the start of July, hitting the fortunes of magnates such as Tencent’s Pony Ma and Pinduoduo’s Colin Huang.
The combined net worth of the two dozen Chinese billionaires in tech and biotechnology whose holdings are tracked by Bloomberg has dropped 16 per cent since ride-hailing platform Didi Chuxing went public in the US at the end of June, according to Financial Times calculations.
A lot of people said tech monopolies are good because they help the U.S. fend off against international competition, so it seems like it's partly the reason why the U.S. stopped cracking down on big tech.
The meaning was clear, and echoed points Zuckerberg made during one of his previous appearances before Congress: Big Tech is essential to fight Chinese platforms like TikTok that can spy on Americans and whose opaque algorithms could be used to conduct malicious activities like censoring political content and potentially impacting an election.
The question now is why China is doing the exact opposite of what the U.S. is doing and killing its own stock market in the process?