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People fear fame like pigs fear growing fat.<\/span><\/p>\n – Chinese saying<\/span><\/p>\n <\/p>\n Most countries have a list of the wealthiest people and it is considered as an honour to feature on the list.<\/span><\/p>\n In China, these lists have a colloquial name:\u00a0sha zhu bang<\/em>: \u201ckill pigs list.\u201d<\/span><\/p>\n In the last fifteen years, China has produced greater overall wealth than any other country. The number of its billionaires has gone from a mere 15 to around 250 in just six years.<\/span><\/p>\n But for a number of these people this elevated status is short-lived. Majority of those on the list end up in the court or the jail. Some even get executed.<\/span><\/p>\n <\/p>\n Regulatory Realignment<\/strong><\/span><\/span><\/p>\n Over the last year, China has seen a struggle between state regulators and entrepreneurs as the government tries to bring technology companies increasingly in line with the strategic goals of the Chinese Communist Party.<\/span><\/p>\n China\u2019s regulators need to discipline their country\u2019s tech companies goes beyond normal concerns to a broader sense, that the companies\u2019 interests aren\u2019t sufficiently lined up with the Chinese Communist Party\u2019s industrial policy or its goal of achieving technological self-sufficiency.<\/span><\/p>\n The campaign has continued apace in 2021 with an intensifying series of antitrust crackdowns and data security probes into the major tech firms (by fining for anti-monopoly violations, penalising for price dumping, and app dumping from app stores etc.)<\/span><\/p>\n <\/p>\n XI\u2019s Directives<\/u><\/span><\/p>\n <\/p>\n Voices of dissent<\/u><\/strong><\/span><\/p>\n \u00a0<\/strong><\/span>Alibaba founder Jack Ma gave a speech last October harshly criticizing China\u2019s regulatory system. His speech was like a punch on the face.\u201d<\/span><\/p>\n Ma told the assembled members of China\u2019s financial, regulatory, and political establishment that the regulatory system was stifling innovation and needed to be reformed to fuel growth.<\/span><\/p>\n <\/p>\n \u201cChinese banks, operate with a pawnshop<\/em> mentality\u201d<\/span><\/p>\n \u201cTo innovate without risks is to kill innovation,\u201d<\/span><\/p>\n \u201cThere\u2019s no innovation without risks in the world.\u201d<\/span><\/p>\n – Jack Ma<\/span><\/p>\n <\/p>\n In giving the speech, Ma took a big risk for himself. His words were a clear signal to regulators that tech companies would fiercely resist any imposition of red tape on them, no matter how reasonable.<\/span><\/p>\n The speech\u00a0reportedly infuriated\u00a0the leadership in Beijing and prompted Xi to take drastic actions.<\/span><\/p>\n <\/p>\n Towing the line: Pre-emptive Philanthropy<\/u><\/strong><\/span><\/p>\n The tech executives have seen the writing on the wall. Now some of China\u2019s richest entrepreneurs have embraced philanthropy in a bid to stave off unwelcome government attention.<\/span><\/p>\n One day after Xi emphasized the virtue of philanthropy, tech conglomerates and China\u2019s rich are pledging billions of yuan towards common prosperity, social, environmental, education and science initiatives.<\/span><\/p>\n The sudden outburst of philanthropic activity is part of an effort to court public opinion and polish their reputations before they find themselves in deep trouble.<\/span><\/p>\n Some chief executives have even decided to move completely out of the limelight by stepping down from their positions at the top of their companies.<\/span><\/p>\n <\/p>\n Is it Weeding out Corruption?<\/u><\/strong><\/span><\/p>\n Arrests and prosecutions like these make one believe that China has begun to take corruption more seriously. However, arbitrary and selective targeting points otherwise.<\/span><\/p>\n China’s legal culture thrives on the principle of ‘killing the chicken to scare the monkeys.’<\/em><\/strong> If the Chinese authorities want they can probably find grounds for accusing any one of them for bending or breaking the rules.<\/span><\/p>\n <\/p>\n Is it to Crush the Perceived Potential Competition?<\/u><\/strong><\/span><\/p>\n China\u2019s billionaires and tech giants are seen as potential rival centers of power and influence in the country.<\/span><\/p>\n The party and the party president feels if not put in place, they can emerge as alternative powers.<\/span><\/p>\n Your views and value additions are most welcome<\/span><\/p>\n For regular updates, please register here<\/span><\/p>\n\n
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