Home / World News / Why is China regulating Big Tech now? Blame a K-shaped recovery for it

Why is China regulating Big Tech now? Blame a K-shaped recovery for it

Big Tech has been aggressive and unwilling to share profits with small businesses on their sites. In the antitrust draft, Beijing placed a heavy focus on the so-called "pick one of the two" tactic

Premium

Chinese President Xi Jinping delivers a speech during a meeting to commend role models in China's fight against the Covid-19 outbreak, at the Great Hall of the People in Beijing, China. Photo: Reuters

Shuli Ren | Bloomberg

3 min read Last Updated : Nov 13 2020 | 7:53 AM IST

Governments around the world put out consultation papers all the time. But only in China can one vaguely worded, 22-page document on antitrust regulations ignite a $290 billion equity selloff. As investors nurse their wounds, they want to know, why is China regulating Big Tech now? And what exactly does Beijing want?

Emerging out of the Covid-19 recession, China got whacked by a K-shaped rebound. The economy is running at two speeds: Large technology companies are thriving, while storefront businesses continue to struggle. A year ago, e-commerce accounted for about 25% of total retail sales; now, it’s edging toward 30%.

What you get on BS Premium?

Unlock 30+ premium stories daily hand-picked by our editors, across devices on browser and app.
Pick your 5 favourite companies, get a daily email with all news updates on them.
Full access to our intuitive epaper - clip, save, share articles from any device; newspaper archives from 2006.
Preferential invites to Business Standard events.
Curated newsletters on markets, personal finance, policy & politics, start-ups, technology, and more.

VIEW ALL FAQs

Need More Information - write to us at assist@bsmail.in