Beijing’s regulatory blitz has shocked outsiders and befuddled investors. Here’s why it’s happening, and what it could mean for China and beyond. Join CNBC’s Arjun Kharpal for the video edition of the Beyond The Valley podcast.
Video Contents:
00:00 – Intro
03:28 – Why now?
05:58 – Shift in mentality
07:35 – New economic order
10:07 – Jack Ma’s speech
13:08 – Motivations
15:10 – The issue with data
19:09 – Reallocating resources
22:54 – Regulatory impact
25:12 – Regulatory co-ordination
27:55 – Regulatory risk
29:52 – What’s next?
#CNBC #Podcast #TechPodcast #VideoPodcast
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China is going in the right direction but the problem is that they are doing it in an inhumanely manner.
@Sahil Abdullah could you clarify what you meant by the 1st comment that China is going in the right direction?
@Danish Hameed state should be most powerful in any country, if individual or company become powerful than state the country and its people will lose independence and become slaves.
@Prajeet Chodankar Already they are slaves of CCP😂😂
@Harish G civilization which has been slave since last 1000+ years and on way to become now a US colony won’t understand.
@Danish Hameed China is welfare state and not neo liberal State
So it’s governments job to make sure that there is social & economic development & balance
Not just economic development & concentration of wealth in the hands of few and economic & regional inequality
China will be world’s no.1 economy by 2030 maybe.
Soon the world will change drastically.
No CCP won’t allow that
@BestIntentions the US won’t allow that, but we Will prove it by sending more refugees to your company
@Leader of CCP you will genocide refugees ok
China will be lucky if it’s still a functioning country you dummy CCP is killing China, last time I checked the world hates China because of the CCP virus
The world hates China but loves Chinese investment…..so it really doesn’t matter if they hate China……….also US is a declining power whereas China is an inclining power……
Collectivism and individualism have different logic in doing things. This is one of the main contradictions between the East and the West.
Sure, Wumao. Did learn that in your Xi Jinping Thought School?
@LaFonteCheVi shabi
@Wishful Guy the purpose is to clean some spaces for new immigrants
@BestIntentions have u been to Japan before
GOLD IS SAFE INVESTMENT THAN CRYPTO BUY PHYSICAL GOLD///
Chinese tech companies were on a roll, they were quickly catching up to the US. US sanctions, boycotts and legislation didn’t stop them. The CCP did. Crazy.
Simple answer without watching the video is
China doesn’t want a bunch of individuals or companies having so much power or control over the government as it’s now happening in the US
That’s why we see what they did with Jack ma
@KevinSol I agreed on your first part that Jack MA was kung fu master. A really shameful thing for money can buy whatever you want. I disagreed you said it was all by chance. And he was not dumb. You know there was over 1Billion people in China . And you think only him copy from the western companies but not other Chinese doing what he was doing? And why the Western didnt do that if that easy? lol
I don’t want big companies controlling the government, but I also don’t like untransparent big governments controlling everything top-down… Why do you guys think that China seems to lack soft power even in Thailand & Indonesia?
@KevinSol Scoring on tests does not make you smart, smart is someone who gives the world what it needs. If Jack Ma uses his money unwisely then its his loss and the gain of the people who tricked Jack Ma, he is still moving money through the economy. Its not all chance, I’m pretty sure Jack Ma made good use of his luck and opportunities.
GOLD IS SAFE INVESTMENT THAN CRYPTO
@KevinSol i watched that kungfu movie. i wish i can made that moive as well if one day i am rish enough.
Because China has been concentrated on copying and stealing from the other countries for the past 40 years !
China also lack of intelligence hard working designers in these fields but copying and stealing !
India also need a crackdown. So many shit’jus’ apps
That’s why I am so confident that India rather than China is more capable to replace U.S. to own the largest number of Big Teches.
@dark4krad you really think things haven’t changed since 1947, when literacy was in single digits and the avg aage an Indian lived to was under 40 yrs and the entire country was on a ship to mouth existence. You are either really young or a troll.
India better invest in toilets and tap water and food distribution and healthcare
@Amithab V I’m talking about the current situation. I’m comparing India with other countries which are better than us. China was actually poorer than India a long time ago. Now we are just ridiculously behind them in majority of aspects. I never said anything about how India was 100 years ago. Frankly, that doesn’t even matter to us now. We think too much about the past while completely ignoring the present and the future which are more important.
ok
“wu/mao 50 cent”
US big tech subpoena hearing is a joke and China want to show the world that government should lead big tech not the other way round
No one should work in China because government owns everything – lie flat
Is that why most of the CCP high level members are billionaires. I thought they didn’t want the rich to rule but the high-ranking CCP members are billionaires
@Abdiweli yusuf This WAS the fact! During 90th, when China was privatized from state-owned enterprises, this process certainly made lots of CPC members became billionaires. During the last presidency, and current Xi, they continue to crack down on these corruptions which mostly came from high-ranking CPC members. From lots of media, they painted this effort as political opponents crackdown but the fact is these corrupted CPC members made fortune by their authority. Today, most of these billionaires are either in jail, death sentence, or escape to foreign countries. Just like your speculation, the crackdown on yourself (elite rich ruling) doesn’t sound logical at all.
Think the opposite of whatever China days.
Yes. enjoy your life as a slave of Wall Street and those internet giants.
USA: Millionaires manage the government
China: Government manage the millionaires
That’s all.
Xi is the CCP and he is filthy rich.
Why isn’t all news so well balanced and clear? More of this please!
Great job China, too much greed of thisbig companies 👍👍👍
Those companies are willing to monopolize the markets and harvest the people of this country. But they forgot this is socialism China rather than capitalism America. We have no persuasive groups in China.
因为商鞅就建议愚民，这样没脑子的越多越好管理。
Not just the tech company
CCP Reform in all directions Now
Ban 996, Shut down extracurricular education ,Crack down on high housing prices,
It changes every 10 years
CPP and it’s 50 cent army is feeling insecure about few individuals who are becoming economically powerful and influential because of their hard work and dedication. That’s why CCP is so shamelessly cracking down on these individuals who have the guts to stand against CCP. That’s the only reason for this crack down.
russian 50 cent here, look how amis ran away from afghan shitting on tail between legs, leaving 13 their dead punks to rot.
@Кракен Иляев Look at how the Soviet Union set this problem in motion by invading in ’79 (and running away with their “tail between legs” too).
@Present Tense i never advocate soviet untermensch state, say thanks to anglogerman brit monarchy who gave soviets industry and weapons to wage infinite wars
Taliban Win, We Got The Resources, Taliban Got Humvee and Blackhawk 😂😂😂
“because of their hard work and dedication” .. there’s your delusion.
God ! Why do you talk so so much – please don’t drag on words get to the point
It’s not his fault you have a short attention span.
To summarize, the CCP doesn’t want to share power with anybody.
Who does? My local government wouldn’t let me add an outlet or change my water heater without first obtaining a permit. Why didn’t share the power with me?
@sin Mc they don’t confiscate your water heater if you go against 😆
Way for China to disincentivize their high performers.
lol you are clueless. These companies become monopolies who gobble up more and more assets. Think about the American experience with Walmart. They absolutely decimated small and medium sized businesses. If you want a healthier and happier society you don’t make the rich richer and let them do whatever they please just because they’re bigger.
@DeeZeed A country that arrests you for criticizing the government and has entire mandatory school courses dedicated to studying how Xi Jinping thinks isn’t a “healthier and happier” society.
You are praising one of the most repressive and controlling countries on the planet. But I’m sure the 3 hours a week of allowed video games for kids is very generous. /s
Capital investment is the only reason China is where it is. The CCP did nothing.
@LaFonteCheVi America allows kids to get shot in the back and then punishes those who mandate masks over some ridiculous notion of “freedom”. You are going to suffer the worst long term ill effects of this society. Second of all markets do not determine the future of China’s direction. Billionaires in the U.S have totally distorted people’s values and ideas to own which only worships money yet nobody will benefit. Market fundamentalism will be America’s downfall. Your 20 years in Afghanistan alone should make you question what sort of system your promoted and looking at the stupidity of U.S citizens in this pandemic I question whether America really believes it will win. The U.S is on a path to self destruction. Socialism will win in the end and the Marxist ideas will prevail.
@DeeZeed let them live in delusion
Big tech good 🤫
What you call “high performers” are wealth hoarders, not something for the greater good.
why? cnbc made a half an hour video and also america made what china is today
I had a manager in the Beijing office touching me – unwanted sexual touching – I reported it and nothing ever happened
@Jing. R. my manager was a woman touching me
@Graham Mitchell nice
@Graham Mitchell that’s sexist, but china is still a more traditional society and they do not see sexual assault against men as equal, I’m sorry you had to go through this
Because your are lying, GTFO foreign ner
@Leader of CCP you’re probably a harasser. I’m sure you wouldn’t be saying this if it was a woman harrased.
Lol china be like lemme fund your startup… did you make tons of money? Ok time to close down shop
The CCP wants to transfer wealth (e.g., data) from the private sector to State Owned Enterprises (SOEs). SOEs generate wealth, patronage and jobs.
@LaFonteCheVi LOL at least we are better than countries where their people die for other country and work hard to feed the immigrants
@LaFonteCheVi lol how old are you ?😂
@LaFonteCheVi aren’t you an adult? Lol, poor kid
they dont need to…coz the state owned enterprises are the major player in the market. I forgot it is the revenue or profit of China Tobacco = to chinese military spend
@Li Shawn Wrong, that’s not their intention. Otherwise, you can’t explain the reason to establish The Beijing stock exchange. Have you heard of it or do you know the purpose of that? The Beijing Stock Exchange is a platform that attracts investment for small and medium businesses…very much the same concept of penny stock. Yap…this is new! The CPC needs a new economic engine as their old engine is slowing down. Their goal is to create a new booming from private sectors in small and medium firms. In other words, they want to get rid of monopolizing corny capitalism and inject more competition in the private sector. Stated owned enterprise would not generate wealth and China knew that very well since they have been through that stage.
Anti Monopoly, Essentials Sectors, Data’s and Monetary control were 4 areas CPC will like to hv their grip on. It stamped sociolism over capitalism. CPC will want its State to play active role to ensure Chinese laymen not being deprived from opportunities n also incurring hardship. A Government selected by its peoples for the peoples.
I have a nice video game dedicated to our “best friend”, the Chinese Communeeest Party! It’s called KICK THE…
TANKS AT TIANANMEN SQUARE!
Play as Tank Man (or even Kiryu Coco) and when the tanks come to you
be a badass and kick them high into the air! Look up – “wangdafu kick the tanks”
It’s a short free game on itch
io for Windows, Mac and Linux!! 😊
Pilage 101: Wait until farmers have gathered crops and accumulated wealth, and then raid. … Pilage X01: Wait until entrepreneurs have built successful enterprises, and then seize.
You mean like Trump tried force sale of TikTok to an American?
Call me a cynic. But I would rather have tech companies have my data than the ccp.
Who do you think these tech companies then give their data to in the countries they operate in?
Excellent insights, especially the long term impact on talent availability for tech companies.
The government in Vietnam is now closing Facebook accounts and heavily fines the users for sending images or short video clips to their friends about their starvation and the unfair treatments of the government officers. The government also uses the covid-19 outbreaks to circle and separate the houses of these persons, making their conditions more desperate. The government is surely using covid-19 policy to kill the people in the South of Vietnam.
In the South and Central of Vietnam there are people in the whole families who have to eat the foods for pigs to keep their stomachs from growling.
In poor areas on small streets in Saigon, Vietnam, where there are many blue-collar workers, the scenes of burying people alive are happening. Many people just have a sudden attack of respiratory failure, they become lethargic and temporarily unresponsive on the street. However, they have not died. Tragically, these persons are immediately covered and wrapped tightly in plastic bags and carried away on a truck to somewhere without being checked for the pulse or provided CPR cardio pulmonary resuscitation. The government personnel ignore the objection from other people around telling that the trapped, dying persons are still moving.
As you know, covid19 causes shortness of breath, body turning blue, lethargy, and temporary coma. However, if they have oxygen, they will breath again, survive and recover from covid19 infection.
Many people with hospitalized symptoms of Covid-19 in Vietnam should have survived but are being forced to die as soon as possible because the government is panic. The government is sending notices that it will fine anyone who post these information, pictures, videos on the internet. Vietnamese people in the South is dying without being allowed to call for help.
Tons of Chinese graduated from ivy league school. They were discriminated against promotion in the US tech companies. So here comes their own companies. Imagining what if google‘s ceo was born in CN not IND, will these Chinese companies have been founded at all?
america is a country being cursed and will be destroyed soon….
I was bullish on Chinese tech stocks, but now this is starting to look like a cultural revolution 2.0…
Medium to long term, if making too much money/profit becomes overly regulated, this may affect entrepreneurship as a whole in China… therefore affecting the investment industry in China (both local and international investment). And given China’s goals and projects, they clearly need lots of capital.
I don’t see how China could hurt itself so much in its goal to become the number 1 superpower, which as expressed in its 5 year plan and 2049 plan, would also mean being the number 1 tech superpower.
I am confused… Valuations are very attractive, too much regulation on the private sector would not be in China’s interest, but it still feels that we are only at the beginning of the crackdown.
@Jeremie The tutoring business in China is completely different from the e-commernce. That’s why I suggest you spend more time on ESG. If you have a chance to talk to Chinese parents, you would know how much they hate those after-school tutoring which created serious social inequity issues. Families not rich were in a very unfair position and the social hierarchical system was increasingly consolidated. In China, you can see a lot of tutoring ads like this – ” if you don’t bring your kids to us, we will train your kids’ competitors”. Bottom society has to squeeze their little expense for children’s education. If you still don’t understand this, watch the Korean movie “parasite”. That will be the future of China if we don’t take action today. By the way, Korean parents hate those after-school tutoring as well but the government can do nothing about it. I suggest you do some research on Korean student’s brutal competition. It’s the same in China today.
@Jeremie I agree that Chinese government should not slam the break and shock investors. It could learn to be more soft and tolerant. From my observation, the Chinese government behave like a “tiger mom”, an eastern culture difficult to be appreciated by western society.
@Jeremie As you are an investor interested in Chinese market, I like to share my last comments. Chinese government’s attitude toward capital market is different from the US. As we have seen so many troubles and social problems created by the Wallstreet to the US and the world in the past 20 years, China doesn’t want to create another wallstreet. Just one is enough for the world. We don’t want to watch a bunch of super-rich taking rockets to the space every day. We prefer to have 1000 mid-to-small size companies with leading technology in niche markets than a couple of monopoly Internet giants. We believe the German economic model is more sustainable than the US model. Hope this will help your future investments in China.
jeremy: you see it from your perspective which is different than government’s perspective. data protection is just like GDPR. anti monopoly policies are always good for new comers. and many more.
I’ve told that investments are always risky & unpredictable: the highest return possibility = the highest risk. I believe that you know that more than I do.
@懒程序员 – 药含 hi, please read what I said more accurately. Of course data privacy is very important, and monopolistic practices usually leads to less value creation for society. I have no problem with regulating that, in Europe we do the same.
I however have a problem when the government destroys a 100Bn$ industry in a day. And looking at market reaction, global Investors were all shocked by such a sudden and strong reform
In China Xi confiscate all your hard work
Capitalism can take over the world but not China !
The US government is run by big
Corporations , example . NO US
National minimum wage law.
Why NO luckdown? Business don’t
Want luckdown. Big business
Over health concerns. Why no
Universal health care ? Big
Business don’t want their profits
Affected by health care. Profits
Over everything.
Data is gold in this century, everyone around you are being stolen by these big tech corporation. wake up citizens of world.
So many wumao and deluded folk. China is a dictatorship with Xi at his center. He has openly stated to want to return China to a Mao-styled regime and reverse Dengist reforms. Recent crackdowns are just a tiny part of a long process that will continue to see more rights and freedoms stripped from Chinese people and put in the hands of the CCP.
When you country has entire school curriculum dedicated to studying how your leader thinks, your country is a dictatorship beyond saving. Cultural Revolution 2.0
This entire video is so unbelievably naïve and out-of-touch. Stop interviewing Chinese propagandists. Nothing Mok says can be taken as truth as this man is subject to the CCP and if he says anything that they don’t like he’ll be arrested. Everyone currently on the HKLC is a CCP puppet as everyone else was purged. Which is why most of what he said was just vague rambling with little substance.
Excellent conversation!
My dude, your shirt is a bit too tight.
It was only for a few seconds and those nips are protruding a bit much at that beginning angle.
Xi Jinping saw Trump got locked out by Facebook and Twitter. Xi does not want that to happen to himself.
They are afraid that the next generation of people who are addicted to games will become useless.
i live in korea and korean teenagers play games a lot. seems like chinese teenagers play a lot too. what about in western countries? is playing games hobby just for nerds? or do most of teens play games?
@StartUp West is pretty much doing the same. Fortnite, GTA 5, etc is an example.
I kove Chinese communistic slavery….our elites do not want anyone to talk back to them
hello from GZ
He don’t know Chinese society well. In China there are the world that the CCP makes a regulation and Citizen makes a way to avoid this.
Please America 🇺🇸 make regulatate your big private tech companies and never let another 2008/2009 global financial crisis !!
Regulation on big tech is a global trend
very interesting to see how many in this thread are actuallt payed influencers, to call them a nicer word. i wonder if CNBC saw this coming.
Thanks for watching and commenting don’t forget to hit the subscribe button for more info…consultation…and advice text w@sap below
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Some big tech companies in China monopolized many industries and destroyed the fairness of opportunity. Small companies are unable to compete with them.
In China, fairness is more important than freedom. So, it’s time to crack them down before they are “TOO BIG TO FAIL”.
中国的一些大型科技公司垄断了很多行业并且破坏了机会公平。小公司无法与他们竞争。
在中国，公平比自由更重要。所以，现在就应该打击他们，避免出现“大而不能倒”的局面。
3 years ago, i was working as a tourist guide for a group of 30 kids from China in Sydney. funny thing is during the tour all of the kids are playing games on their phone and non of them really interested in what is out there or willing to communicate with the locals that made me scared. i worried about my furture kids will be addicted to the video games as well. for those kids they are not old enough to know self-control, with their parents credit card their comsuming power are huge. I have seen maybe news in China that the kids spend ten thousands yuans on gaming and their parents was shocked when they got the bill. i believe it is a good thing to regulate the gaming industry.
Regulating the gaming industry to get rid of purchases, addicting, anti-social & brain numbing, elements isn’t the same as telling kids they can only online game 3 hours a week… All you are doing is looking for excuses to control people.
We’ll see what adults say when the government regulates them. The regulation is for kids now, but who is to say that the govt won’t regulate adults who spent too much time on the internet playing app games and watching videos/movies/TV shows? It’ll be interesting to see how it’ll go. The US certainly has its own problems with multi-billion corporations being so powerful. When Bezos thanked Prime users for his space trip I was like dafuq? I’d say rich people need to be reined in a bit, but what would happen with China’s version of reining them in?
@StartUp some do some dont. i would say they misunderstand China or shall I say they do not ask questions when they listen to their local news about China.
@Alex aoeu256 China do not have the rating thing for all the media or games as i know. so i think it is a good thing to block /limit some access for the kids. about the “control” are you serious? your words sounds like none of them have a soul…which is very rude and wrong.
@P W gov dont have to regulate adults who spent too much time on internet or games coz if we all have something called mortgage or family bills to pay… right?
I am also interested how the gov / game companies gonna do it.
0:28
how is anyone “battling it out” with the US for “tech supremacy”
if the US is so much in control of most (if not all) the tech, that when a simple ban practically puts other country’s biggest companies out of business?
china is way too dependent on foreign (especially US) tech, to be “battling it out” with the US for “tech supremacy”
Let’s just say we’re lucky china hasn’t decided to have its own ban, cause you probably wouldn’t be able to flush your toilet with china’s economy
A lot of the Chinese investors are starting the divert their investment into other markets including Africa. It will be interesting to see more investment funds in Africa from China and how the west will react.
The America has every capability of wiping out China totally from the world’s map. Don’t tell me 3000 nuclear weapons are for display only. Can’t wait to see Biden do this for the sake of the entire human race.
“crackdown” is used in every western media, this extraordinary verbal uniformity is shocking to say the least, given that we all know the same story would be told 100 different ways if told by 100 people. One wonders why and globally coordinated propaganda and mindless follower syndrome come to mind.
Seems like the CNBC guy is luring the guest into the typical “big bad CPP” “China Crackdown” narratives so essential to western media talks about China. This guest is unlikely to be reinvited by CNBC for being too objective.
You dummy little pink China is finished now because of your CCP just wait and see how bad it’s going to get
马云搞得是高利贷 这东西被包装成金融科技纯属自欺欺人 挺可笑的 活该被禁
Get everything out of China now!!!!
China will be a huge North Korea in 10years enjoy you little pinks
This is CCP Propaganda
China will be the next Soviet Union soon, goodnight China!!! 🤣🤣🤣🤣🤣🤣🤣🤣🤣
Would have been better doing a video essay without this host
China should impose even heavier crackdown🙂 And do the favor to the world
Power struggle is getting real a.f.
Why is it that we get these neophytes that almost know nothing about CCP and their history. It like the blindman giving another blindman directions.
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Foreigners need to leave China before it’s too late.
It’s bullshit that the CCP wants to protect workers and women from sexual harassment at work. If they did they would pass laws to reduce work hours and regulate workplace harassment. The CCP just wants power and to rob money from the rich for themselves.
China always bans social media apps and that’s bad.
China will push one button and destroy it all
In the West, there’s a healthy balance of power between Big tech and Government – Ying & Yang.
In China the government has absolute power over big tech. This is unhealthy because no balance.
Problem with socialism is you eventually run out of the other person’s money.
Yes