The Chinese government is moving to control private companies-centered activities in the market.
This move is based on the joint wealth, one of the Chinese government’s policies. The common rich that China has mentioned since 2020 is the idea that penetrates Chinese society when everyone becomes rich together. With the recent three consecutive terms of Xi Jinping, the policy has been in full swing. However, in the current idea of the Chinese government, joint wealth is interpreted as ‘not monopolizing some private companies in the market’.
The Chinese government is a common-wealth policy, ▲ first redistribution (autonomous distribution based on contributions within the market) The charity act of rescue).
It’s not just a concept, it’s actually happening. As an example of the third redistribution, Tencent promised to donate 50 billion yuan (about 9 trillion won). The donations promised by the six major big techs (technology companies) such as Tencent, Alibaba, Bite Dance, Pan Dump, Dayton and Xiaomi are about 30 trillion won.
There is also a movement that the government is involved in management through a stake rather than a donation. The byte dance, which runs ‘Tic Talk’, has launched a 1%stake and a director to the state-owned company in Beijing. The subsidiaries of the Alibaba affiliated financial firm Ant Group were also introduced by state-owned corporate capital. Weibo also handed over 1%of its subsidiaries to state-owned companies.
Companies classified as big tech have big data. The Chinese government’s involvement in management rights seems to be trying to manage the data of big tech companies. In this background, the establishment of a joint venture between Tencent and China Unicom on October 18, 2022, is also one of the joint wealth policies.
The joint venture is expected to use the content transfer network (CDN) and edge computing (a technology that processes data in real time through distributed small servers). This can be interpreted by the chinese government to manage data distribution directly.
China Unicom is a state-owned company in China and is in charge of China’s mobile and wired communication business. Tencent is a private company that acquires or has a certain stake in the game industry based on its enormous capital power.
Foreign media and economic guidance also pointed out that this joint venture seems to be controlling private companies through government intervention.