Chinese President Xi Jinping will take part in the virtual event of the World Economic Forum WEF of the Davos Agenda and will give a special address via video link on January 25, 2021 in Beijing, the capital of China.
Li Xueren | Xinhua News Agency | Getty Images
GUANGZHOU, China – Chinese President Xi Jinping called for laws and regulations to be speeded up for so-called “platform” companies, a sign that Beijing will continue to fight the country’s tech giants.
“The development of some platform companies is not standard and there are risks,” said Xi in an address to China’s highest economic body, according to the state broadcaster CCTV.
The term “platform” is typically used to refer to technology companies that operate everything from social media companies to e-commerce and may include, for example, Tencent and Alibaba.
According to Xi, regulations must “close loopholes and loopholes in the rules” for such platform companies.
He said regulators need to step up oversight of these companies, prevent monopolies, promote fair competition and stop disorderly expansion of capital. Xi also said that regulators need to create a “data ownership system”.
So far, regulators have made a number of comments on rules for technology companies. However, the latest focus comes straight from China’s leaders, suggesting that further action is likely to be taken against the private tech giants.
Beijing has so far taken action against the billionaire Jack Ma’s empire. First, Ant Group, Alibaba’s finance company, was forced to shut down its $ 34.5 billion IPO in Hong Kong and Shanghai. Ant cited “major issues like the changes in the regulatory environment of financial technology” for the cancellation.
Alibaba was fined in December for failing to properly report previous transactions to regulators.
There are now signs that regulators’ crosshairs may focus on other tech companies. Bloomberg reported Monday that regulators may now have their sights set on Tencent’s financial technology business.