Chinese tech companies need to be dealt with even harder. That says an adviser to the Chinese central bank in a Chinese government newspaper.
According to the advisor, the size of companies such as online store giant Alibaba and game company Tencent lead to more inequality and a limitation of the economic growth of the country. The market would not be able to solve the problem, so the government must intervene, says advisor Cai Fang.
Major Chinese tech companies have been under pressure for some time as they face stricter regulations imposed by Chinese regulators. Recently, several companies have been tackled due to, among other things, competition violations and the handling of user data.
According to Cai, tackling the monopolies that the big Chinese tech companies are at risk of getting would improve the country’s productivity. The Asian country’s idea is to benefit more from improving that productivity than from further increasing investment.