• News
    • Stocks
    • Banks and Finance
    • Companies
    • Crypto
    • Forex
  • Videos
  • Articles
    • Forex CRM
    • Crypto Payments
    • Trading
    • Crypto Exchange Business
    • Forex Business
    • Fintech
    • Liquidity
    • FinTech Awards
  • Liquidity Providers List
  • Crypto Payment Providers

Dark Theme

China’s Anti-Monopoly Crackdown Is Just an Excuse

Dec 16, 2021

China’s Anti-Monopoly Crackdown Is Just an Excuse

Is China truly enforcing anti-monopoly laws? The record-breaking fines levied in recent months lean strongly in this direction. However, as is customary in China, state-owned enterprises are subject to different restrictions than private firms.

Twelve corporations were punished in March by the strong State Administration of Market Regulation, or SAMR, for "illegal monopolistic activity." Among these companies were the search engine Baidu and the technology behemoth Tencent. SAMR penalized Alibaba $2.8 billion in April for antitrust violations and Meituan $530 million in October for similar infractions. And, this month, Beijing established an Anti-Monopoly Bureau amid debates about tightening the country's Anti-Monopoly Law. "Monopoly is the main enemy of the market economy," the People's Daily, the mouthpiece of the Chinese Communist Party, declared upon the news of the Alibaba punishment.

True, but China is not a market economy, nor is it on the verge of becoming one. The Party is using the anti-monopoly campaign as an excuse to strengthen its grip on private enterprises, particularly those in the internet industry. As it turns out, the Party is correct in believing that agile, innovative private enterprises imperil the state sector's economic supremacy. As a result, the Party intervenes to keep control—and succeeds.

China's powerful monopolies are here to stay. There are two possible explanations. Consider, for example, that SAMR, despite its severity, has demonstrated a narrow lens. While it probed China Mobile and several smaller food brands in 2019, its primary focus has been on internet and technology corporations. According to China's National Bureau of Statistics, the internet, software, and information technology sectors account for barely 3.7 percent of the Chinese GDP. However, it remains the most strategically important sector of the Chinese economy, with private enterprises dominating. None of China's ten largest and most powerful internet businesses are state-owned. That is a striking outlier in a country dominated by SOEs.

JD.com and Alibaba are enormous, China's two largest online corporations. However, they did not crack Fortune's list of the top ten largest Chinese companies by sales in 2021. Ping An Insurance, the only ostensibly private firm in China's top ten, is commonly seen as a state proxy. The remainder is state monopolies or duopolies, several of which hold regional or national monopolies or duopolies. State Grid, the world's second-largest company in terms of revenue, supplies electricity to 88 percent of China's population, while the three major oil companies: China National Petroleum Corporation, Sinopec Group, and China National Offshore Oil Corporation control virtually all of China's crude production.

The second reason monopolies will remain is because Beijing intends to bolster state-owned enterprises. How are we aware? The Party has said this repeatedly and is carrying out its stated objectives. As professor Minxin Pei noted in a December 2020 essay titled "China's Anti-Competition Pro-Monopoly Crusade," Xi and others have urged Beijing to strengthen, improve, and expand SOEs. Consolidation of SOE continues. In August, two state-owned steelmakers announced a merger that will form the world's third-biggest steelmaker. China Baowu's aggressive acquisition strategy of other SOEs over the previous several years has helped it become the world's largest steelmaker. Beijing is expected to launch China Rare Earth Group this month, a state-owned company formed by the consolidation of multiple state-owned rare earth enterprises, in order to further consolidate and centralize Beijing's worldwide rare earth monopoly.

The SOE sector's contribution to China's economy has been surprisingly steady in the twenty-first century, often accounting for 25-30% of GDP. What has changed in recent years is the extent to which private enterprises are required to fulfill the Party's interests and commands. Indeed, SAMR's goal is not to dismantle technology companies but to weaken their resistance to Party monitoring and control.

Subscribe Our Newsletter

Don’t Miss The Gold Rush. It’s Time to Buy!

Milena

Don’t Miss The Gold Rush. It’s Time to Buy!

Spot gold rose strongly off the bottom, achieving a weekly bullish key reversal in its most powerful comeback since March/April 2020. It is definitely time to buy.

Crypto
Gopher Prepares for Final Negotiations with Playtech Regarding Finalto
Gopher Prepares for Final Negotiations with Playtech Regarding Finalto

The investment firm and Playtech stakeholder went on to say that it will now collaborate with the Playtech board on its own proposal.

Companies
Constantine

What is Slippage in Trading? – Definition
Opening a deal on the financial market is accompanied by some kind of magic, don't you agree? At least, that's what many beginning traders think. Sometimes they "for some reason" start each deal with a small minus (it's a spread), then the position is not always clearly opened at the price they requested.

discover
What is Initial DEX Offering (IDO)?

Liquidity Provider

What is Initial DEX Offering (IDO)?

The creation of the initial DEX offering (IDO), one of various unique means of fundraising, is a result of the maturity of the cryptocurrency market as a whole.

Fintech

Contact Us

Contact the Liquidity Provider
for any questions and advertising inquiries b2broker

    Please fill out this contact form to get in touch with us

    / 3000

    By clicking “Get in touch” button, you agree to the privacy policy

    Tamta

    What Is Crypto Arbitrage Trading?

    https://liquidity-provider.com/app/uploads/2023/06/cover-1-800x540.jpg

    Tamta

    Guide to Craiyon: How To Use a New DALL-E Mini

    https://liquidity-provider.com/app/uploads/2023/06/cover-5-800x540.jpg

    Tamta

    Credit Cards vs. Debit Cards

    https://liquidity-provider.com/app/uploads/2023/06/cover-800x540.jpg

    Tamta

    Investing In Private Equity: What Should You Know?

    https://liquidity-provider.com/app/uploads/2023/05/cover-7-800x540.jpg

    Tamta

    What is Data Analytics? Techniques, Tools, Methodology, and More

    https://liquidity-provider.com/app/uploads/2023/05/cover-6-800x540.jpg

    Tamta

    Bitcoin Halving is Coming: What Does it Mean for the Crypto Market?

    https://liquidity-provider.com/app/uploads/2023/05/cover-4-800x540.jpg

    Tamta

    Crypto Token Supply From A to Z

    https://liquidity-provider.com/app/uploads/2023/05/cover-3-800x540.jpg

    Tamta

    What Is ChatGPT, And How Can You Use It?

    https://liquidity-provider.com/app/uploads/2023/05/cover-2-800x540.jpg

    Anton

    Trading on Autopilot: The Rise of Crypto Trading Bots

    https://liquidity-provider.com/app/uploads/2023/05/cover-1-800x540.jpg

    Tamta

    Crypto Investing vs. Crypto Trading: What’s The Difference?

    https://liquidity-provider.com/app/uploads/2023/04/cover-5-800x540.jpg

    Tamta

    Understanding Indexed Universal Life Insurance (IUL)

    https://liquidity-provider.com/app/uploads/2023/04/cover-4-800x540.jpg

    Tamta

    Best Investment Strategies For Beginners

    https://liquidity-provider.com/app/uploads/2023/04/image1-800x540.jpg

    Tamta

    Understanding Perpetual Futures: How Do They Work?

    https://liquidity-provider.com/app/uploads/2023/04/cover-3-800x540.jpg

    Tamta

    What Is A Bitcoin Stock-To-Flow Model? Beginner’s Guide

    https://liquidity-provider.com/app/uploads/2023/04/cover-2-800x540.jpg

    Tamta

    Best Decentralized Crypto Exchanges In 2023

    https://liquidity-provider.com/app/uploads/2023/04/cover-1-800x540.jpg

    Tatma

    Best High-Yield Savings Accounts For March 2023

    https://liquidity-provider.com/app/uploads/2023/04/cover-800x540.jpg

    Tamta

    Crypto Trading For Beginners

    https://liquidity-provider.com/app/uploads/2023/03/cover-8-800x540.jpg

    Tamta

    How To Make Money With Cryptocurrency

    https://liquidity-provider.com/app/uploads/2023/03/cover-7-800x540.jpg

    Tamta

    What Is A Candlestick Chart?

    https://liquidity-provider.com/app/uploads/2023/03/cover-6-800x540.jpg

    Constantine

    White Label Forex Software — Ultimate Guide on How to Choose The Best Industry Solution

    https://liquidity-provider.com/app/uploads/2023/03/cover-3-300x203.jpg

    Tamta

    Forex Trading: A Beginner’s Guide

    https://liquidity-provider.com/app/uploads/2023/03/cover-2-300x203.jpg

    Tamta

    How to Create a Cryptocurrency

    https://liquidity-provider.com/app/uploads/2023/03/cover-1-1-800x540.jpg

    Tamta

    Top Ten Richest People In The World, 2023

    https://liquidity-provider.com/app/uploads/2023/03/cover-4-1-300x203.jpg

    Constantine

    What’s at Stake? Here’s How to Avoid Scam Tokens

    https://liquidity-provider.com/app/uploads/2023/03/cover-5-300x203.jpg
    • News
      • Stocks
      • Banks and Finance
      • Companies
      • Crypto
      • Forex
    • Articles
      • Forex CRM
      • Crypto Payments
      • Trading
      • Crypto Exchange Business
      • Forex Business
      • Fintech
      • Liquidity
      • FinTech Awards
    • More
      • Videos
      • Liquidity Providers List
      • Crypto Payment Providers
    [email protected]

    © 2023 Liquidity Provider. All Rights Reserved

    Privacy Policy Cookie Policy