Box: The season of regulatory crackdown in China, from technology to education

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File photo: People can be seen at the Alibaba Group’s 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, start-ups and decades-old businesses in an equally new and uncertain environment.

Sectors facing regulatory pressure are:

Game company

Chinese regulators have reduced the amount of time gamers under the age of 18 can spend playing online games to one hour of play on Fridays, weekends and holidays in response to growing concerns over gambling addiction, said on Monday. official media. Said to.

Tech companies in preparation for an IPO

According to people familiar with the matter, China has rules in place that prohibit internet companies whose data poses a potential security risk from registering abroad, including in the United States.

The ban should also be imposed on companies involved in the problem of idealism, he said, refusing to identify the problem as private.

cloud computing

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

According to a document viewed by Reuters, Tianjin, China, has asked companies run by municipalities to transfer data from private companies such as Alibaba Group and Tencent Holdings to state-sponsored cloud systems.

Platform economy

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

The Chinese Cyberspace Administration said in a statement Friday that companies must adhere to the principles of business ethics and fairness, earn money so that users spend large sums of money or in a way which disrupts public order. He said you shouldn’t set up an algorithmic model that you are tempted to use.

In April, the state’s Market Regulatory Authority awarded Alibaba a record $ 2.75 billion for engaging in a ‘choose one of the two’ practice banning the platform. of e-commerce to sell on competing sites of suppliers. 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 spreading false information about the 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. . Prohibited.

education

Beijing has introduced regulations that prohibit private business tutoring companies from raising funds overseas.

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

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

Online financing

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

The regulations place restrictions on online interstate loans and capped loans to individuals.

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

Climb to hail

In June, China’s Cyberspace Administration ordered Didi, one of the leading ride-sharing companies, to stop accepting new users within days of their listing on the New York Stock Exchange.

This step eliminated about a fifth of the company’s stock price.

Analysts and investors alike say Didi’s measures relate more to big data and overseas listings of Chinese companies than to competitive practices.

Regulators initially cited breaches of consumer privacy, but then released another round of regulatory proposals to conduct security reviews before Chinese data-rich companies go public.

At the time of the ACC 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 tightened restrictions on China’s crypto industry 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.

Over the following weeks, the state government took action to curb Bitcoin mining.

The restrictions have sparked a wave of mining blackouts across the country, and the Global Times tabloid estimates that 90% of mining operations will be closed in the short term.

goods

China’s Housing Ministry and seven other regulators have called on the property management industry to “improve order.”

With China’s economy improving after the 2020 slowdown caused by the coronavirus, authorities have stepped up efforts to curb rampant mortgage lending 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 mortgage limit.

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

Source link Box: The season of regulatory crackdown in China, from technology to education

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