"Exclusive Strict Crackdown" Xi Jinping Raises Pressure on Giant Internet Companies

[Image source=AP Yonhap News]

[Asia Economy Reporter Cho Hyun-ui] Chinese President Xi Jinping has once again increased pressure on large internet companies.

According to CCTV and Bloomberg News on the 16th, President Xi said at the Communist Party Central Financial and Economic Affairs Commission meeting the day before, "We must strengthen supervision of internet companies, strictly crack down on monopolistic behaviors, promote fair competition, and prevent the disorderly expansion of capital."

He also emphasized, "It is necessary to enhance data security of internet companies and for regulatory authorities to regularly supervise their financial activities."

Bloomberg News analyzed that President Xi’s strong directive to strengthen regulations on large internet companies is aimed at curbing the influence of domestic internet giants such as Alibaba and Ant Group.

Bloomberg News predicted, "This measure will apply to mobile and internet companies serving hundreds of millions, including Didi Chuxing, Meituan, JD.com, and Pinduoduo."

Accordingly, the Chinese government is expected to strengthen related laws and regulations. The state-run media CCTV, citing the Communist Party Central Financial and Economic Affairs Commission meeting minutes, reported, "Some internet platform companies are developing in non-standard ways," and "We need to accelerate amendments to relevant laws."

At the meeting, President Xi said, "China’s platform economy is at a critical juncture," and added, "From a long-term perspective, we must address shortcomings, create an innovative environment, and ensure development in a healthy and sustainable direction."

This content was produced with the assistance of AI translation services.