On Oct 10th, the Chinese Communist Party (CCP) began to propagate the idea of “curbing Internet monopoly”. Such propaganda indicates that the war between Xi and Jiang is really fierce, as it goes into the core area of finance. Through a series of so-called “investigations” and sanctions on Internet giants including Alibaba and Tencent etc., the Xi group essentially cuts off the “blood” supply of Jiang Group and will eventually strangle the latter to death. Jack Ma and Pony Ma, Jiang Group’s “white gloves”, will soon usher to the fate of Wang Jian, the chairman of HNA who died for unknown reason on July 3, 2018.
The war between Xi and Jiang has been heating up for a long time. On October 24th, Jack Ma said in a speech on the Bund that there is no “systemic risk” in China’s financial sector, because there is no “financial system” in China. His argument directly contradicted Wang Qishan’s speech on the same day. Then in the night of November 3rd, the Ant Financial Service Group IPO was called off urgently just few hours before being listed on stock exchanges in Shanghai and Hongkong, followed by the ” Anti-monopoly guidelines in the field of platform economy (draft)” issued by State Administration of Market Supervision of CCP in the morning of November 10. The draft claims to prevent and stop monopolistic behaviors in the field of internet platform economy, to guide internet companies to operate in accordance with the law, to promote the sustained and healthy development of the network economy against the Anti-monopoly.
As we all know, the Internet giants of CCP have been able to grow rapidly through the monopoly status granted by Chinese government. This new trick of “the thief shouts to catch a thief” is essentially the Xi group demands a complete concession from Jiang group. Although most of the Internet giants have long been in cahoots with the Xi group, Jiang group still control the core interests of these internet giants.
In addition, all Internet platforms, under the control of Wall Street, stand against the current government during the U.S. election. This situation keeps the group of Chinese Communist Party in power shudder. As a result, it became so urgent for the CCP to fix the internet platforms who is “dominantly” holding the right of free speech.
The wealth-grabbing drama under the guise of “anti-monopoly”
China has the largest number of Internet users in the world (904 million Internet users), but has not opened its market to global Internet companies. Instead, China has fostered the rise and rapid growth of internal companies by building a firewall to keep prominent U.S. internet companies out of its gates. There has never been a corporate monopoly in China, only an authoritarian dictatorship and monopoly by Chinese Communist Party.
Why has the Internet industry become an “anti-monopoly” target at this time?
The basic reason is that the Xi group does not hold the core interests of the Internet industry. Xi Jinping has been using a series of “anti-corruption” tactics in recent years to nurture his “own people” through a purge within the party, with some sources saying that since the end of last year Xi has promoted a number of newcomers who he has cultivated over the years to ministerial-level, as these “loyal fellows” need money to “feed” themselves.
Secondly, since the Sino-American trade war and especially after the outbreak of CCP virus epidemic, the Chinese economy has been really hit hard and many industries earn no profit or even loss. The Internet industry was the last piece of “meat”, becoming the target among interest groups of the CCP.
Third, in recent years, overseas markets have begun to take precautions against CCP’s Internet giants in response to the problems with WeChat and Tik Tok. Therefore it becomes increasingly difficult for these giants to “attract attention” and steal technology and capital from overseas.
Fourth, even if the ruling group has no intention to compete for these Internet giants, it is difficult for it to foster a new economy in the country, as the tentacles of these internet giants have already penetrated into every aspect of domestic people’s life.
As a result, the so-proclaimed “anti-monopoly” is definitely not a true purpose, but rather the new ruling group needs to establish its own “monopoly” interests.
Political Infighting escalates and the dead knell is ringing for “white gloves”, like Jack Ma
Mr. Miles Guo has mentioned many times that the outcome of “Jack Ma” will be worse than “Wang Jian”. As the political infighting escalates and “anti-monopoly” movement becomes so urgent, it is not difficult to infer that death knell has been rang for “white gloves”, such as Jack Ma.
Combined with the situation that Jack Ma and Pony Ma, who have gradually stepped down from their respective original positions in the past two years, the fate of these Internet companies and their bigwigs might have the following possibilities:
(a) The Central Government will swiftly launch an anti-monopoly investigation, and major Internet giants will be facing huge fines and a series of penalties for “monopoly” in the industry, and even confiscation of their assets to hollow out their interests.
(b) Internet bigwigs plead guilty to crimes or abscond (suicide), their assets will be confiscated, and their families will be implicated and go to jail.
(c) All the above-mentioned assets will be rapidly moving into the emerging economies of “white gloves” from new ruling group, and the domestic economic inner circle is sprouting “vigorously”.
In this way, the international pressure of public opinion on the CCP from the long-time “evil deeds” done by WeChat, Tik Tok and Alibaba could be relieved. After a strategy of breaking internet companies into small pieces with new names, Chinese Communist Party will be able to steal technology from the Silicon Valley, and to steal capital from the Wall Street once again.
Under the repeated blows of the Whistleblower movement, Chinese Communist Party has entered into its final madness, the wealth of these Internet giants may be further dispersed or disguised, the New federal state of China needs to be vigilant against capital infiltration and corrupting our new economy by those evil groups.