Alibaba founder Jack Ma has long been a symbol of the Chinese dream, but his empire is under government pressure and shaking public sentiments.
China is locked in a heated diplomatic confrontation with the US – one that cannot end with the arrival of a new White House dweller. At home, President Xi Jinping continues to tighten his grip on power. All the while, the world is struggling to stop the coronavirus epidemic that starts on Chinese soil.
The news on Thursday morning came as a shock to many in Beijing: Chinese authorities had launched an anti-monopoly investigation against e-commerce giant Alibaba Group Holding.
The State Administration for Market Regulations said it is investigating alleged Alibaba trade practices – such as requiring sellers to specifically list their products on their platforms – that are considered violations of the anti-monopoly law.
Alibaba dominates more than half of China’s e-commerce market. There have been rumors that it forces sellers to choose between Alibaba and other platforms using its superior bargaining position. But the new investigation is part of the group’s troubles.
On Thursday, the People’s Bank of China – the central bank – announced that it would begin monitoring Alibaba’s financial arm Ant Group, along with China’s Banking and Insurance Regulatory Commission and others. Certainly, Ant was forced to postpone a planned initial public offering in Shanghai and Hong Kong in November. Officials withstood the $ 35 billion list, the world’s largest set at the last minute.
Alibaba founder Jack Ma widely banned a comment made in mid-October at a financial forum in Shanghai. “Good innovations are not afraid of supervision, but they are afraid of outdated supervision,” Ma said.
This was seen as a challenge to the Communist Party’s oversight, prompting President Xi Jinping’s government to swiftly block IPOs. Ma has not been seen publicly since, sparking speculation that she herself is under investigation.
A researcher from a Chinese government-linked think tank explained the clampdown on Alibaba as: “The ant was like a lone shark. If the authorities didn’t do anything about Ma, who led the ant, the public would be the government.” Can rise against. “
Ma, a charismatic entrepreneur who many see as the embodiment of the Chinese dream, enjoys widespread popularity. But his empire has grown so large that some observers say that the average Chinese have started seeing him and his vast wealth out of his league. The government, perhaps eager to seek public opinion about this change, is going after Alibaba.
Thursday afternoon, I stopped by Beijing headquarters of Alibaba, which is located en route to Beijing Capital International Airport. Investigations by the state administration for market regulations may primarily target other head offices in Hangzhou, Zhejiang Province. I saw few people coming and going.
Alibaba plans to relocate its Beijing headquarters to a nearly full civilian building in the Guomao business district. The 528-meter building, built by state-owned conglomerate Citic, is the tallest in the city.
On Thursday night, I passed by Guomao praising the Christmas decorations. I approached the citic building, which was dark, as the interior is still being finished. Will Alibaba lose its shine before reaching the top of the capital? Ma’s empire is at a critical juncture.