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Alibaba has a much bigger problem than the crackdown on technology

Alibaba's struggle is borne out in the numbers. Revenue for the three months to December climbed just 10%, compared with 29% growth the prior period

The logo of Alibaba Group is seen at its office in Beijing, China
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The logo of Alibaba Group is seen at its office in Beijing, China

Tim Culpan | Bloomberg Opinion
Alibaba Group Holding Ltd.’s slowest quarter on record comes amid a prolonged crackdown on China’s major technology companies. It’s easy to conflate the two.
 
But the increased regulatory burden is overshadowed by even harsher problems. Chief among them: peak customer. It’s a reminder that the country’s burgeoning middle class is no longer easy pickings for high-flying companies with ubiquitous platforms.

“We believe we have substantially captured all consumers with purchasing power in China,” Chief Executive Officer Daniel Zhang told investors late Thursday. “We’ll focus on a shift from new-user acquisition to user retention and [average revenue per user] growth.” The

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