China’s crackdown on tech continues as JD, Alibaba fined again

15:34, 20 November 2021
China’s crackdown on tech continues as JD, Alibaba fined again Photo: Jason Lee/REUTERS

The governmental crackdown on tech regulators in China is continuing as it was announced that Alibaba, and Baidu will receive more fines for not informing the government for 43 of their deals which have taken place since 2012.

According to the regulators their actions violate the anti-monopoly legislation and thus they must be punished. 

The sum of the fine will be $78,000 for each company which is not a large amount considering the financial resources of the companies.

However, stock markets reacted negatively to the news as fears arose that the Chinese regulators are still not done with the continuing crackdown.

Among the deals which resulted in fines are the 2021 agreement between Baidu and Zhejiang Geely Holdings to establish a new electric car company as well as Alibaba’s acquisition of AutoNavi, a digital navigation company.

China’s Golden Dragon index is a downward trend ever since the start of 2021 when the pandemic started. 

Supply chains problems as well as the continuing tension with the west and internal regulations are forcing Chinese indexes to plunge even further. 

Among the firms that are leading the indexes down is the already mentioned Alibaba which has dropped by 20% this month alone. 

Earlier, it was reported that US President Joe Biden is planning to boycott the 2022 Olympic games in Beijing marking the rise in tensions between the US and China.