Budapest Post

Cum Deo pro Patria et Libertate
Budapest, Europe and world news

China's Xi Jinping warns of tech crackdown, Alibaba pulled from app stores

China's Xi Jinping warns of tech crackdown, Alibaba pulled from app stores

CCP officials on Monday warned of tech giants 'growing in an inappropriate manner'

Chinese companies are pulling tech giant Alibaba's search engine from their platforms after President Xi Jinping warned of a tech crackdown in the country, according to reports.

The action comes after China in November pulled the record $37 billion initial public offering of Alibaba's financial-technology affiliate Ant Group after facing regulatory scrutiny, The Financial Times reported.

It also comes after Chinese state media company CCTV criticized Alibaba for displaying medical ads from untrustworthy sources, according to Reuters, but experts say neither its e-commerce dominance nor its misleading ads led to China's crackdown on the company.

"The real reason behind the crackdown is ... the conglomerate's growing influence in various aspects of Chinese people’s lives," Weifeng Zhong, senior research fellow at the Mercatus Center at George Mason University, told FOX Business.


He added: "Being able to influence and command a large population is the most critical monopoly power of the Chinese government, and any challenge to that, even if unintended, won't be tolerated. This is also why Li Ka-shing, Hong Kong's richest man, has been divesting his various businesses from China even before Beijing heavy-handedly intervened in Hong Kong's system."

Chinese Communist Party leadership said during a Monday meeting that some tech companies "are growing in an inappropriate manner and therefore bear risks," according to The Guardian. "It is a considerable problem that the current regulatory regime has failed to adjust."

Alibaba did not immediately respond to an inquiry from FOX Business.

The tech giant, often referred to as China's Amazon, owns a greater share of China's e-commerce market than Amazon's share of the U.S. e-commerce market. The CCP is apparently considering fining Alibaba $975 million over anticompetitive practices, eyeing its tech and media acquisitions over the past several years, The Guardian reported.

China’s market regulator last December fined Alibaba and other companies for not seeking approval over several deals.


The company told The Guardian in a statement that "the purpose" of such investments "is to provide technology support for their business upgrade and drive commercial synergies with core commerce business."

"We do not intervene or get involved in the companies’ day-to-day operations or editorial decisions," the company said.

China in February released anti-monopoly guidelines aimed at clamping down on anti-competitive practices in the internet industry, such as signing exclusive agreements with merchants and the use of subsidies to squeeze out competitors.

The country has banned a number of U.S.-based tech giants like Google and Facebook and is now grappling with the expansion of Chinese tech companies seeing huge success within their home country.

Last week, China’s market regulator said that it fined a dozen companies, including games company Tencent Holdings and Chinese search engine firm Baidu Inc., for not disclosing past deals as authorities step up anti-monopoly scrutiny in the internet sector.

The companies were fined $77,000 each for not disclosing previous investments, acquisitions or joint ventures, according to a statement by China’s State Administration for Market Regulation.

AI Disclaimer: An advanced artificial intelligence (AI) system generated the content of this page on its own. This innovative technology conducts extensive research from a variety of reliable sources, performs rigorous fact-checking and verification, cleans up and balances biased or manipulated content, and presents a minimal factual summary that is just enough yet essential for you to function as an informed and educated citizen. Please keep in mind, however, that this system is an evolving technology, and as a result, the article may contain accidental inaccuracies or errors. We urge you to help us improve our site by reporting any inaccuracies you find using the "Contact Us" link at the bottom of this page. Your helpful feedback helps us improve our system and deliver more precise content. When you find an article of interest here, please look for the full and extensive coverage of this topic in traditional news sources, as they are written by professional journalists that we try to support, not replace. We appreciate your understanding and assistance.
Newsletter

Related Articles

0:00
0:00
Close
Satirical Sketch Sparks Political Spouse Feud in South Korea
Indonesia Quarry Collapse Leaves Multiple Dead and Missing
South Korean Election Video Pulled Amid Misogyny Outcry
Asian Economies Shift Away from US Dollar Amid Trade Tensions
Netflix Investigates Allegations of On-Set Mistreatment in K-Drama Production
US Defence Chief Reaffirms Strong Ties with Singapore Amid Regional Tensions
Vietnam Faces Strategic Dilemma Over China's Mekong River Projects
Malaysia's First AI Preacher Sparks Debate on Islamic Principles
Meta and Anduril Collaborate on AI-Driven Military Augmented Reality Systems
Russia's Fossil Fuel Revenues Approach €900 Billion Since Ukraine Invasion
Alcohol Industry Faces Increased Scrutiny Amid Health Concerns
U.S. Goods Imports Plunge Nearly 20% Amid Tariff Disruptions
Italy Faces Population Decline Amid Youth Emigration
Trump Accuses China of Violating Trade Agreement
OpenAI Faces Competition from Cheaper AI Rivals
Foreign Tax Provision in U.S. Budget Bill Alarms Investors
Russia Accuses Serbia of Supplying Arms to Ukraine
Gerry Adams Wins Libel Case Against BBC
EU Central Bank Pushes to Replace US Dollar with Euro as World’s Main Currency
U.S. Health Secretary Ends Select COVID-19 Vaccine Recommendations
Trump Warns Putin Is 'Playing with Fire' Amid Escalating Ukraine Conflict
India and Pakistan Engage Trump-Linked Lobbyists to Influence U.S. Policy
U.S. Halts New Student Visa Interviews Amid Enhanced Security Measures
Trump Administration Cancels $100 Million in Federal Contracts with Harvard
SpaceX Starship Test Flight Ends in Failure, Mars Mission Timeline Uncertain
King Charles Affirms Canadian Sovereignty Amid U.S. Statehood Pressure
EU Majority Demands Hungary Reverse Anti-LGBTQ+ Laws
Top Hotel Picks for 2025 Stays in Budapest Revealed
Iron Maiden Unveils 2025 Tour Setlist in Budapest
Chinese Film Week Opens in Budapest to Promote Cultural Exchange
Budapest Airport Launches Direct Flights to Shymkent
Von der Leyen Denies Urging EU Officials to Skip Budapest Pride
Alcaraz and Sinner Advance with Convincing Wins at Roland Garros
EU Ministers Lack Consensus on Sanctioning Hungary Over Rule of Law
EU Nations Urge Action Against Hungary's Pride Parade Ban
Putin's Helicopter Reportedly Targeted by Ukrainian Drones
U.S. Considers Withdrawing Troops from Europe
Russia Deploys Motorbike Squads in Ukraine Conflict
Critics Accuse European Court of Human Rights of Overreach
Spain Proposes 100% Tax on Non-EU Holiday Home Purchases
German Intelligence Labels AfD as Far-Right Extremist
Geert Wilders Threatens Dutch Coalition Over Migration Policy
Hungary Faces Multiple Challenges Amid EU Tensions and Political Shifts
Denmark Increases Retirement Age to 70, Setting a European Precedent
Any trade deal with US must be based on respect not threats', says EU commissioner
UK Leads in Remote Work Adoption, Averaging 1.8 Days a Week
Thirteen Killed in Russian Attacks Across Ukraine
High-Profile Incidents and Political Developments Dominate Global News
Netanyahu Accuses Western Leaders of 'Emboldening Hamas'
Ukraine and Russia Conduct Largest Prisoner Exchange of the War
×