Fact Box: China’s regulatory crackdown season, from technology to education


File Photo: People can be seen at the Alibaba Group booth at the China Internet Conference exhibition held in Beijing, China on July 13, 2021. REUTERS / Tingshu Wang / File Photo

August 30, 2021

Shanghai (Reuters) -China has launched a multi-faceted crackdown on tech companies, operating start-ups and decades-old companies in a similarly new and uncertain environment.

The sectors facing regulatory pressure are:

Game company

Chinese regulators have reduced the amount of time players under the age of 18 can spend on online games to one-hour gameplay on Fridays, weekends, and holidays in response to growing concerns about game addiction, state media said Monday. Told to.

Technology companies aiming for IPO

According to people familiar with the matter, China has put in place rules banning Internet companies whose data poses a potential security risk from listing abroad, including the United States.

The ban is also expected to be imposed on companies involved in the idealism issue, he said, refusing to identify the issue as private.

Cloud computing

China is building its own state-supported cloud system “guoziyun” to directly threaten major tech companies such as Alibaba, Huawei and Tencent Holdings. This is interpreted as a “national asset cloud.”

According to a document seen by Reuters, Tianjin, China, has requested municipal-managed companies to move data from private businesses such as Alibaba Group and Tencent Holdings to state-sponsored cloud systems.

Platform economy

China is trying to increase the monitoring of algorithms used by technology companies such as e-commerce companies and social media platforms to target users.

China’s Cyberspace Administration said in a statement on Friday that companies must adhere to the principles of business ethics and fairness, making money so that users spend large amounts of money or in a way that disrupts public order. He said that you should not set up an algorithmic model that tempts you to use.

In April, the State Market Regulatory Authority gave Alibaba a record $ 2.75 billion for engaging in a “choose one of two” practice banning the e-commere platform from selling on vendor rival sites. I imposed a fine.

Regulators have also fined small businesses for other practices related to consumer rights and labor.

In May, he fined rival JD.com 300,000 yuan for promoting false information about food.

Regulators have also ordered Chinese food delivery companies to increase worker protection.

Celebrity fan club

China cracked down on what it described as a “chaotic” celebrity fan culture on Friday, after a series of controversies involving artists that the platform would publish a popularity list and regulate the sale of fan products. Forbidden.

education

Beijing has introduced regulations that prohibit private commercial tutoring companies from raising funds abroad.

The rule also states that tutoring centers must be registered as a non-profit organization, must not offer programs for subjects already taught in public full-time schools, and prohibit weekend and holiday classes. You can also.

Tutoring services are very popular with parents due to their competitive higher education system, but the government has recently sought to reduce parenting costs to curb late birth rates.

Online finance

In November, shortly before Ant Group Co Ltd went public on a record sale, Chinese banking regulators announced a draft rule calling for tighter control of online lending, where Ant is a giant player.

Regulations place restrictions on cross-state online loans and capped loans to individuals.

The next day, the People’s Bank of China suspended the Ant Group’s IPO. In April, regulators called on Ant to separate its payments business from its personal finance business.

Ride hailing

In June, China’s Cyberspace Administration ordered Didi, a leading ride-hailing service company, to stop accepting new users within days of listing on the New York Stock Exchange.

That step knocked out about one-fifth of the company’s stock price.

Analysts and investors say Didi’s measures are more related to big data and overseas listings by Chinese companies than competitive practices.

Regulators initially cited consumer privacy breaches, but then issued another series of draft regulations to conduct security reviews before data-rich Chinese companies went public.

At the time of the CAC investigation, Chinese market regulators did not report the acquisition of SMEs, forcing Diddy and other companies to pay a fine of 500,000 yuan.

Bitcoin

In May, three financial regulators increased restrictions on China’s crypto sector by banning banks and online payment companies from using cryptocurrencies for payments and payments.

They also banned institutions from providing exchange services between cryptocurrencies and fiat currencies, and banned fund managers from investing in cryptocurrencies as assets.

In the next few weeks, there were measures from the state-level government to curb Bitcoin mining.

These curbs have caused a wave of mining outages nationwide, and state-linked tabloid Global Times estimates that 90% of mining operations will be shut down in the short term.

property

China’s Ministry of Housing and seven other regulators have instructed the real estate management sector to “improve order.”

With the improvement of China’s economy after the 2020 downturn caused by the coronavirus, authorities have stepped up efforts to curb rampant real estate borrowing this year in hopes of preventing an asset bubble.

Other regulatory measures include a developer’s borrowing limit known as the “three red lines” and a bank’s real estate loan limit.

(Report by Josh Horwitz and Brenda Goh, edited by Carmel Crimmins and Mark Potter)

Source link Fact Box: China’s regulatory crackdown season, from technology to education





Source link

Leave a Reply

Your email address will not be published.

You may use these <abbr title="HyperText Markup Language">html</abbr> tags and attributes: <a href="" title=""> <abbr title=""> <acronym title=""> <b> <blockquote cite=""> <cite> <code> <del datetime=""> <em> <i> <q cite=""> <s> <strike> <strong>

*

%d bloggers like this: