In an article in February, the Shanghai Securities News, an official media outlet of the Communist Party of China, directly named several entrepreneurs as “more market-compliant,” but the founder of mainland e-commerce giant Alibaba, Jack Ma, was missing, raising concerns. These mainland companies have all violated international market rules, and Alibaba was once close to being sanctioned by the United States.
This article in the official media of the Communist Party of China is entitled “High-quality development, how can we lack entrepreneurship”. The article begins by comparing two generations of entrepreneurs on the mainland – the article refers to entrepreneurs in the early days of the CCP’s reform and opening up as “reckless heroes” and now they are replaced by “a group of entrepreneurs who follow market rules more closely. “.
The article then directly names huawei President Ren Zhengfei, BYD founder Wang Chuanfu, GREE Chairman Dong Mingzhu, Fuyao Glass Chairman Cao Dewang, Xiaomi Chairman Lei Jun, and Tencent President Ma Huateng, and quotes some of their statements, meaning they are what the official media call “entrepreneurs who follow the market rules more closely.
The Shanghai Securities News is published by Xinhua News Agency, the official media of the Communist Party of China, and is designated by the Communist Party’s Securities Regulatory Commission and the Banking and Insurance Regulatory Commission as a media outlet for disclosing relevant industry information.
Ma Yun is the only one missing from the official media praising enterprises
The industry noted that the above article did not mention Jack Ma, the founder of Alibaba, the largest e-commerce online trading platform in China.
Reuters cited an analysis that said Ma is the most well-known businessman on the mainland, and the lack of mention in the official media is a kind of “untraceable mockery” that shows how much Ma has fallen out of favor with the Chinese government.
In his speech at the Shanghai Financial Summit on October 24, 2020, Jack Ma publicly commented on the CCP’s regulatory system, including the statement that “we must change the pawnshop mentality of finance,” which was said to be inconsistent with the CCP’s official position.
Subsequently, Ma did not appear for more than two consecutive months, sparking widespread speculation.
During Ma’s disappearance, Alibaba’s Ant Group was scheduled to go public simultaneously on Nov. 5 on A and Hong Kong stocks, but CCP officials called off its $37 billion IPO on Nov. 3; subsequently, the CCP launched an anti-monopoly investigation into Alibaba and Ant Group.
On Jan. 20 this year, Ma appeared for 48 seconds in a video linking up with rural teachers on the mainland, when Alibaba shares rose for a Time, after which he disappeared again. At the time, Reuters cited an analysis that said Ma’s brief appearance did not mean he was all right and did not help resolve his poor relationship with Communist Party regulators.
All of these companies have violated international market rules
Among the companies named by the Communist Party’s official media above, Huawei is under a sanctions order from the U.S. government for having a Communist Party military background and being involved in monitoring users and stealing intellectual property.
Tencent’s WeChat, at the request of the U.S. government, was removed from the U.S. App store as of September 20, 2020, and U.S. telecommunications carriers, hosters, and Internet access service providers, are not allowed to work with WeChat. The reason for the sanctions is that WeChat may be handing over user data to the Chinese Communist Party (CCP), cooperating with Beijing authorities to spy on and suppress those who oppose the CCP, and threatening U.S. national security.
The U.S. government added Xiaomi and nine other mainland companies with ties to the Chinese Communist Party’s military to its sanctions list on January 14, 2021.
BYD sells electric buses in the U.S. through its subsidiary. The U.S. government passed a bill in late December 2019 to ban the use of government funds to purchase trains, subways, buses and other public transportation facilities made by mainland companies after two years.
Gree Electric was disqualified in July 2020 for falsifying the “2020-2021 high-pressure centrifugal chiller centralized procurement project” of China Mobile.
Fuyao Glass was sanctioned by the U.S. Department of Commerce in 2002 for having a dumping rate of 11.8%, because the U.S. had reason to believe or suspect that there were “unknown” subsidies in the cost structure of Fuyao Glass.
In early January, Alibaba, Tencent and Baidu were once included in the list, but were later removed.
After the financial fraud scandal involving mainland companies listed in the U.S. in 2020, the U.S. passed the Foreign Company Accountability Act, which requires foreign companies listed on U.S. exchanges to comply with U.S. audit standards or face delisting.
After the passage of the Act, there was a wave of delisting of Chinese stocks or a wave of secondary listings in A-shares and Hong Kong stocks, such as Ctrip, Jingdong, NetEase, Baidu, and Alibaba’s secondary listing in Hong Kong back in November 2019.
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