In less than 40 years, China has expanded its economy and become one of the world’s leading growth engines. Now, President Xi Jinping is making good plans to advance his rivals by transforming his country into a digital powerhouse. But Xi’s drive to tech rule is threatened by an unexpected speed bump: China’s massive extermination of Jack Ma’s business empire.
The sudden collapse of the favor of one of the founders of Alibaba Group Holding Ltd. it has disrupted parts of China’s technology sector, according to local businessmen and commercial capitalists, as Xi prepares to pour billions of dollars into making the country independent of everything from semiconductors to software.
Another founder of Ma in his hometown of Zhejiang says he no longer wants the success of Alibaba, fearing the risk of unwanted government attention. Another says he has stopped talking in public and plans to focus on expanding his robot business overseas. An entrepreneur who has supported a number of initiatives says the Ma proverb will make entrepreneurs less aggressive, especially those who compete with state-owned companies. All three have requested anonymity in order to speak openly on a sensitive political issue.
“Jack Ma’s case could be a turning point in China’s technology sector,” said Rebecca Fannin, founder of the Silicon Dragon Ventures research team.
There are supporters of the Alibaba attack, Ant Group Co (also founded by Ma), and other major Chinese giants both inside and outside the Chinese government who said it was necessary to end the strategies of commitment and care in the first place. otherwise you are fighting for competition. But discussions with more than a dozen Chinese founders and investors received widespread concern about the lack of open government and the severe repression of dissenting views. Some suggest that they will push back their ambitions and think twice about getting into the most important industries.
At Xi, his government unveiled the latest five-year economic plan on March 5, the risk that the reduced business segment reverses its campaign to reduce the country’s reliance on U.S. technology. China’s up-and-coming model of innovation contrasts with that of the U.S., where technological advances have long been promoted by the independence of inventors such as Jeff Bezos, Bill Gates, and Elon Musk. No country has built a world-class technology industry while silencing its entrepreneurs.
“Facing the Chinese government is a trade-off between innovation and regulation,” said Lizhi Liu, an assistant professor at Georgetown University who conducts research on China’s e-commerce and economic policies. “It’s hard to strike the right balance: How much is enough regulation and how can you avoid excessive control that can reduce design and growth?”
Mother’s condition in China before the collapse was even more difficult. He was like Bezos, Gates, and Steve Jobs together, given how few successful Chinese founders existed before Ma left her job as an English teacher and started Alibaba in 1999.
When the company first appeared on the New York Stock Exchange 15 years later in what was once the world’s largest public offering, it began searching for gold among the working capitalists in China. They filled the start-up budget, which increased the country’s deal to $ 56.4 billion by 2015, from $ 5.2 billion in 2013, according to market researcher Preqin.
That money changed China’s growth, helping the world’s second-largest economy become the first active competitor in the US with technological leadership since the early days of Silicon Valley. In 2018, China took the same amount of money from the U.S. and created the same number of unicorns, or startups worth at least $ 1 billion that have never been seen in public. Boom companies, such as ByteDance, Meituan, and Pinduoduo, have become the biggest names in global technology.
Now, however, Ma has become a matter of warning. After criticizing Chinese finance authorities in a speech last October, the government released a plug on Ant Group’s $ 35 billion IPO a few days before it happened. Beijing launched an investigation into Alibaba’s infidelity a few weeks later. Ma has left public view, with the exception of a well-designed appearance in January where she promotes rural education – a policy that has been a priority for the Chinese Party of China. Rumors of Ma’s condition continued to erupt, despite being seen playing golf recently last month.
The founder of Ma’s home province says he and other local businessmen are no longer interviewing him on their WeChat team. Before the campaign they would always celebrate a millionaire, the richest man in China, like Ma Laoshi, or “Teacher Ma.”
But the founder and his management team have now concluded that Ma is not the only issue. They are therefore proud of the heartwarming services in Beijing and plan to hire more specialists in public relations. Vendors have been told to refrain from calling the company “the biggest” or the “best” in the industry to avoid unwanted attention.
“The government says the private sector plays a vital role in the Chinese economy and that they will support us wholeheartedly, but the fact is that the government does not trust the private sector,” the founder said.
Beijing officials did not respond to a request for comment.
One businessman who uses software startups says he connects with the government to protect his company. He called on government investment funds to buy stock, perhaps even more stock. The founder, who also asked for anonymity for fear of reprisals, said he thought it was inevitable that government officials would run companies like his.