Beijing Should Curb Tech Monopolies to Ensure Growth

China should strengthen efforts to control the expansion of tech monopolies because the development of internet platforms leads to a “winner takes all” dynamic, which increases inequality and slows economic growth, an advisor to China’s central bank said.

Beijing Should Curb Tech Monopolies

“The new technological revolution with more prominent properties of increasing returns will inevitably produce an unprecedented tendency toward monopoly,” Cai Fang, a member of the People’s Bank of China’s monetary policy committee, told the state-run Securities Times in an interview.

Major platform operators must review working conditions of gig economy workers to ensure their rights in income and labor safety, according to a government statement issued late Friday. That came after a meeting between four government agencies and 10 major platform companies, including Meituan, Alibaba and Tencent.

Separately, China is seeking to break up Alipay and create a separate app for its loan business, the Financial Times reported, citing people familiar with the plan. Regulators have already ordered the company to separate the back end of the lending unit from the rest of its financial offerings and bring in outside shareholders, it said.

Beijing Should Curb Tech Monopolies

“I believe the markets is still finding the bottom valuation of Chinese internet stocks,” said Fan Cheuk Wan, Asia chief investment officer for Private Banking and Wealth Management at HSBC Holdings Plc, on Bloomberg TV. “The regulatory tightening is not yet over, we think the market will remain volatile, companies will still be very sensitive to news.”

Chinese authorities have asked Internet firms to rectify wrongdoings at several gatherings in recent weeks, though have held back from heavy-handed curbs like the shock ban on profits at tutoring companies in late July.

Beijing Should Curb Tech Monopolies

Top technology regulator warned internet firms on Monday against blocking links to rival services, reaffirming Beijing’s order for online giants from Tencent Holdings Ltd. to ByteDance Ltd. to dismantle walls around their platforms.

Beijing Should Curb Tech Monopolies to Ensure Growth via @MasterMindUpdate
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