Chinese regulators are defending their crackdown on industries that have disrupted the market as they speak with Wall Street executives, claiming the new rules aren’t supposed to crush tech companies, reported PYMNTS.
China Securities Regulatory Commission Vice Chairman Fang Xinghai has said the recent actions were meant to boost regulations for companies as well as data privacy and national security.
Fang, according to an anonymous source quoted by Bloomberg, said the actions were meant to cut down on social anxiety, including those aimed at the education and gaming industries. China’s recent wide swathes of regulatory activities have unnerved global investors. The regulations have targeted big technology companies and other aspects of the economy as President Xi Jinping pushes to create “common prosperity.”
Bloomberg wrote that the new regulations could put billions at stake for Wall Street as it had previously been trying to expand to China, as the country had been opening its financial markets to investment banks and foreign money.
Fang reportedly said that the higher levels of scrutiny on Chinese companies shouldn’t be interpreted as a slight against the US or a way to break off partnerships, saying that Beijing “remains committed to technology,” per Bloomberg.
China’s State Council, the country’s cabinet, said in July it would be looking into regulatory oversight of companies that trade in offshore markets, and it will also reportedly be looking into more scrutiny over the corporate structure allowing Chinese tech companies to seek offshore listings, which the report calls “legally gray.”
Investors, with those developments, are worried about the possibility of a deeper financial decoupling between the two largest economies in the world.
Want more news? Subscribe to CPI’s free daily newsletter for more headlines and updates on antitrust developments around the world.
Featured News
Chamber of Commerce Sues to Overturn FTC Non-Compete Ban
Apr 24, 2024 by
CPI
FTC Chief Warns of Healthcare Price Fixing Risks Amid Tech Advancements
Apr 24, 2024 by
CPI
Amazon’s Investment in Anthropic Faces Antitrust Scrutiny
Apr 24, 2024 by
CPI
Italian Antitrust Authority Fines Amazon €10 Million for Unfair Trade Practices
Apr 24, 2024 by
CPI
Tuta Mail Raises Alarm Over Google Search Ranking Plunge Amidst DMA Rollout
Apr 24, 2024 by
CPI
Antitrust Mix by CPI
Antitrust Chronicle® – Economics of Criminal Antitrust
Apr 19, 2024 by
CPI
Navigating Economic Expert Work in Criminal Antitrust Litigation
Apr 19, 2024 by
CPI
The Increased Importance of Economics in Cartel Cases
Apr 19, 2024 by
CPI
A Law and Economics Analysis of the Antitrust Treatment of Physician Collective Price Agreements
Apr 19, 2024 by
CPI
Information Exchange In Criminal Antitrust Cases: How Economic Testimony Can Tip The Scales
Apr 19, 2024 by
CPI