🇨🇳 Why Chinese antitrust is all about exerting government power
Just like the US, the Chinese government has been taking antitrust actions against large tech companies. But China has a much different goal, according to the NYT: maintaining more power, a monopoly if you will, of the government.
One antitrust expert in Hong Kong likens it to “shock therapy”: He told the New York Times China has reeled in major companies, like ride-sharing app Didi, to bring them back closer to the government. The end result could be China having de facto state control of tech and all the various data the tech companies collect.
China has been very blunt about this goal: The Communist Party said last year it wanted private companies to “firmly listen to the party and follow the party,” which tech insiders interpreted as a call for them to show their worth and loyalty to the government.
And when Didi didn’t listen to the government, it got shut down
The ridesharing app, which followed through with a U.S. IPO listing, has been removed from app stores over security concerns.
While some of China’s actions could lead to a more level playing field and potentially lighter working hours for staff of major companies, its antitrust strategy is still centered on consolidating power for itself.