China likely to nationalise Jack Ma’s Alibaba and Ant Group: Reports…

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China Likely To Nationalise Jack Ma’s Alibaba And Ant Group: Reports

The scrutiny of Ant Group and Alibaba comes at a time when China is closely examining the influence of the country’s internet sector.

Outlook Web Bureau
11 January 2021

The Chinese government is considering to nationalise Jack Ma’s Alibaba and the Ant Group, reports claimed.

This comes in the backdrop of China initiating an investigation to probe Ant Group.

Interestingly, Jack Ma had delivered a speech on 24 October criticising China’s bureaucratic system, alleging that it stifled innovation and he equated banking regulations to an “old people’s club”.

“Based on tip-offs received by the State Administration for Market Regulation in recent days, the administration will be investigating Alibaba … for suspected monopolistic activities,” International Business Times quoted the Chinese government as saying.

The scrutiny of Ant Group and Alibaba comes at a time when China is closely examining the influence of the country’s internet sector.

Last month, China released draft regulations to clamp down on anti-competitive practices in the industry, such as signing exclusive agreements with merchants and the use of subsidies to squeeze out competitors.

https://www.outlookindia.com/website/story/world-news-china-likely-to-nationalise-alibaba-and-ant-group-headed-by-jack-ma-reports/370226

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International Business Times

China CCP to Nationalize Jack Ma’s Alibaba and Ant Group – Report

  • By Jacob J
  • Updated January 8, 2021 22:25 +08

Reports from China indicate that the Chinese government may be working on a plan to nationalize Jack Ma’s Alibaba and the Ant Group. China’s ruling Chinese Communist Party (CCP) has gone further ahead with the antitrust investigation into e-commerce giant Alibaba.

“Based on tip-offs received by the State Administration for Market Regulation in recent days, the administration will be investigating Alibaba … for suspected monopolistic activities,” the government said.

The investigating agencies had set up an office at the Alibaba headquarters in November. Apart from the e-commerce giant, investigators are also probing social media giant Tencent and e-commerce company Meituan.

The news of the government’s plan to enforce more curbs on Alibaba sent its stock spiraling down as much as 8 percent. Alibaba said in a statement it would cooperate with any investigation. “Today, Ant Group received a meeting notice from regulators,” Alibaba said in a statement.

Decision Taken at Highest Levels of CCP

Meanwhile, sources have said the development is a proof of China’s resolve to nationalize Alibaba. Song Qing, Internet finance industry insider, said the investigation is part of CCP plans to nationalize both Ant Group and Alibaba. “There will definitely be an outcome, now that they have started the investigation … This is probably coming from the highest levels,” he told Radio Free Asia.

The suggestions are that the plan to nationalize Alibaba has come from the very top of the ruling Communist Party structure. A few days ago, the People’s Daily, the official mouthpiece of the CCP, said the government’s “anti-monopoly work” will lead to “better development.” The paper said the party Politburo thought ‘anti-monopoly work’ should be strengthened to prevent the disorderly expansion of capital.

Song Qing agrees with the view. “Just a couple of weeks ago, they set out plans to nationalize Ant Group and Alibaba; the timing was deliberate … Those plans all came from the central leadership,” he said.

He also added that the government wants to make a lesson out of Alibaba. “These nationalizations are definitely happening, and [the antitrust investigation] will likely speed up that process … It’s also, I think, about making an example of [Ant and Alibaba],” he said.
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Xi Jinping, Chinese President and CCP general secretary, had said in October that the plan was to make China a more state-controlled economy based on domestic demand. Observers think China’s political economy is poised to see major changes. Many believe that Xi will change the pattern of property ownership in the country.Read more

This article was first published on December 26, 2020

https://www.ibtimes.sg/china-ccp-nationalize-jack-mas-alibaba-ant-group-54444

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