By now we all know that the Chinese stock market is going through “a melt-down” of more than US$550bil. The panic is widespread and extends beyond private education firms or transport. Companies like Meituan, Tencent are also taking a hit.
We see different bloggers (and substackers) writing different interpretations. Many of them paint the Communist Party of China as power hungry and determined to rein in big tech going out of control. Many have a caveat “Maybe China’s leaders, for reasons that will remain forever opaque to us, have done this or that.”
We don’t think the reasons are opaque. In this special edition of The Lowdown, we have gathered 7 opinions from practitioners on the ground, – some are from the Momentum Works community , to demystify the China regulators crack down and the underlying reasons.
Why are they sharing this? We feel that it’s important to bridge this insights gap, and to help everyone understand why things happen the way they are.
Regardless of the political climate – we are now all connected to China – in terms of culture, history, supply chain, investment, technology and people.
As Ren Yi (a.ka. Chairman Rabbit) – whose blog we have also condensed below puts it: “The Chinese model is so special that it is not easy to tell the Chinese stories.”
We do not judge what is right/ wrong, and the sharing of the opinions are for you to form you own judgement, assess your own risks and make your own decisions.
And as always, we’re always happy for a chat if you need.
Check out these articles on Chinese crack down on tech companies:
- Is China deliberately smashing the tech industry?
- Misunderstanding and the Cold war: Reasons why the Chinese stock market plummeted
- Are Chinese government policies really unpredictable?
- Seven major areas that China regulators are focusing on
- China’s online education crackdown is good for the society
- Wechat stopping new user registration is not another crackdown by chinese government
- Tencent forced to give up exclusive music rights – did it really lose out?