Xi Jinping warns against tech excess in sign crackdown will widen

China’s top leader Xi Jinping warned that Beijing will go after so-called “platform” companies that have amassed data and market power, a sign that the months-long crackdown on the country’s internet sector is only just beginning.
 
President Xi Jinping on Monday chaired a meeting of the communist party’s top financial advisory and coordination committee, ordering regulators to step up oversight of internet companies, crack down on monopolies, promote fair competition and prevent the disorderly expansion of capital, according to state broadcaster CCTV. Internet companies need to enhance data security and financial activities need to come under regulatory supervision, CCTV also reported.

 
The unusually strongly worded comments from Xi and his lieutenants suggest Beijing is preparing to amplify a campaign to curb the influence of its largest and most powerful private corporations, which has so far centered mainly on Jack Ma’s Alibaba Group Holding and its affiliate Ant Group. The term platform economies could apply to a plethora of mobile and internet giants that offer services to hundreds of millions, from ride-hailing behemoth Didi Chuxing to food delivery giant Meituan and e-commerce leaders like JD.com and Pinduoduo.
 

“Some platform companies are developing in non-standardised ways and that presents risks,” CCTV said, citing minutes of the meeting. “It is necessary to accelerate the improvement of laws governing platform economies in order to fill in gaps and loopholes in a timely fashion.”

 
The report came days after Bloomberg News reported that governments watchdogs were now setting their sights on Tencent Holdings’ $100 billion-plus finance empire after ordering an overhaul of Ant. Top financial regulators see Tencent as the next target for increased supervision, according to people with knowledge of their thinking. Like Ant, Tencent will probably be required to establish a financial holding company to include its banking, insurance and payments services, said one of the people. The two firms will set a precedent for other fintech players on complying with tougher regulations, the people added. Tencent lost more than $65 billion of value in the two days following the report, and its shares were little changed Tuesday.

 
Meanwhile, China’s market regulator on Tuesday tightened scrutiny over the country's booming livestreaming e-commerce platforms, where internet influencers sell goods directly to consumers, citing concerns about poor quality products and misleading advertising.
The State Administration of Market Regulation recently met several livestreaming e-commerce firms, which presented self-disciplinary measures, the agency said. It said all livestreaming platforms should "quickly conduct self-control and comprehensive inspections" on product quality.
 
Chinese regulator clamps down on livestreaming e-comm platforms