2 min video looking at how the Chinese have been cracking down on some of its FinTech superstars
Alibaba just in 2019 registered more than 1,500 Blockchain patents than any other company globally, Tencent filed over 700, and they too are also based in China.
The likes of JD.Com, Meintua, Tencent, and Alibaba are very much under the scrutiny of the Chinese government have seen their share prices fall by up to 25% from their recent highs which is understandable when giving statements from the Communist Party’s People’s Daily such as “if monopoly is tolerated, and companies are allowed to expand in a disorderly and barbarian manner, the industry won’t develop in a healthy, and sustainable way.” Presumably, this will halt the expansion of some of the more entrepreneurial plans.
Jack Ma comes under scrutiny from the Chinese
Jack Ma, an ex-teacher founder of Alibaba who has not been seen now for two months, is estimated by Bloomberg to be personally worth over $61 billion, although this could have been even more had the Chinese not stopped ANT Group’s IPO in Nov 2020, which was set to raise $35 billion making it the biggest IPO ever
A concern has to be given the number of patents that China has filed for patents around Blockchain technology will part of the Chinese government’s crack down extend to them taking control of some of these once stock market on-line tech darlings and thus control or even restrict the use of their patents globally?
Many of the tech firms have been at the forefront of FinTech innovation encouraging digital payments resulting in a rapid decline in the use of cash within China. It is argued that these developments have enabled China to leapfrog Europe and America.
However, if we are to see more controls and restrictions, will the pace of innovation change to a more inward-looking China, which will impact the global economy? We have already seen the China Development Bank and the Export-Import Bank in China reducing lending 2016 from $75 billion to $4 billion lendings in 2020
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