Author:CT-GTalk Source:The Wall Street Journal
According to a report in the Wall Street Journal on December 20th, at an unusual meeting on November 2nd, Chinese billionaire Jack Ma told officials of Chinese Regulators that he was ready to do everything the country needs him to do, and offered to hand over parts of his financial-technology giant, Ant Group, to the Chinese government. The analysis pointed out that Jack Ma’s move was an attempt to save his relationship with the regulators. Also, this unusual meeting took place a few days before Ant was supposed to go public. Such bad luck, Jack Ma.
It is worth mentioning that after President Xi Jinping delivered a speech on controlling financial risks in October this year, Jack Ma even boldly commented that it stifled corporate innovation. Now, less than one month after his boldness: knock, knock, the Chinese Regulators pay him a visit. Under this situation, Jack Ma’s sycophantic skills are pretty useless. Ant’s initial public offering (IPO) got shot down. According to people with knowledge of the matter, Xi Jinping personally ordered the Chinese Regulators to investigate the risks posed by Ant, and halted its IPO .
However, this is just the start. After Ant’s IPO suspension, the Chinese Regulators took a series of actions towards “platform economy” and internet-based business championed by large tech companies.
For Jack Ma, this may be only the start of his nightmare. It is reported that Chinese Regulators are considering imposing tighter capital and leverage regulations on Ant right now. Under this scenario, state-owned banks or other types of state-owned investors will buy into Ant to make up for the capital shortage caused by tightening policies.
But according to analysts, the CCP has already nationalized certain financial service products of Ant. For example, it put NetsUnion’s interbank payment system under the control of the central bank which is responsible for clearing transactions between banks and third-party payment providers.
In recent years, under Xi’s regime, the CCP has repeatedly sacrificed many private Chinese enterprise groups. For example, property tycoon Wang Jianlin’s Dalian Wanda Group was forced to sell assets, reduce business and repay back loans. The other one is Anbang Insurance Group which has been taken over by the state. Its founder, Wu Xiaohui, was sentenced to 18 years in prison for fraud and embezzlement of public funds in 2018. In addition, HNA Group, an airlines-and hotel enterprise, had to withdraw from frantic overseas acquisitions and sale of assets.
At the same time, Jack Ma has been safe and sound thanks to his good political relations. However, since his speech on October 24th, he has disappeared from the public eye. I wonder whether he enjoys his retirement or not.
All these years, Ant Group and the e-commerce giant Alibaba Group Holding (BABA), which are both controlled by Jack Ma, and Internet giant Tencent Holdings, are barely under the government’s supervision. All of them have achieved such great success that the CCP’s leaders, including Chinese Prime Minister Li Keqiang, have often stated that the Internet and big data are essential to promote future economic growth.
However, the CCP’s leadership has also shown growing anxiety about the wealth and influence accumulated by these companies, as well as the risks posed by their lax supervision. The CCP’s leadership is particularly worried that fast-growing companies like Jack Ma’s are attracting funds. The CCP leadership never stops worrying that these companies lead the country’s financial system to greater risks. As a result, the so-called anti-trust regulators of the CCP began to take a series of measures such as acquisitions, mergers, and fines on Alibaba and Tencent subsidiaries in the name of anti-monopoly.
The funny thing is that the CCP’s state-owned monopoly companies such as China Telecom and those in fields such as financial services, airlines, energy, and so on, have never seen being sanctioned or split to avoid monopoly. Apparently, to emphasize the so-called “anti-trust” is nothing more than Xi Jinping taking these bagmen that belonged to other political power groups into his own use.
The sure thing is that the payment systems established by Alibaba and Tencent collected and are still collecting a tremendous amount of consumer data which is used to evaluate personal reputation using a proprietary algorithm. As long as you have common sense, you will know that this data is also extremely valuable to the CCP for monitoring Chinese people. Thus, we have reason to believe that Jack Ma’s database has already been controlled and manipulated by the CCP.
This is even a clear pattern for the CCP’s bagmen’s fate. At the very beginning they tried to follow the top dogs when they were trying to start a business as ordinary people. Then they would betray their conscience, lose their way, be condescending to ordinary people, and make themselves rich. Lastly, whether they want to admit it or not, they are so ready to be ‘slaughtered’ by the CCP. Check out what happened to those tycoons like Wang Jian and Jack Ma. One is dead and one disappeared. Mile Guo who started Expose Revolution had warned so many Chinese entrepreneurs. He believes that only by taking down the CCP can the talents of entrepreneurs be truly stimulated, and wealth that belongs to society and the public can be truly created.