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Significance
The primary targets (for now) are the largest firms, Alibaba and Tencent, and their subsidiaries. Alibaba alone accounts for one-fifth of all consumer goods sold in China.
Impacts
New measures will protect consumers and other traders and put greater scrutiny on M&A.
An ownership structure (the ‘VIE’ structure) that tech firms use to circumvent M&A requirements will attract greater regulatory attention.
A revised Anti-Monopoly Law enabling huge fines for violations by tech giants is likely to pass mid-year.
Keywords:
China,
AP,
industry,
computers,
corporate,
internet,
regulation,
technology,
finance,
Consumer finance,
IT software & services
© Oxford Analytica 2021. All rights reserved. This content contains general information about geopolitical, macroeconomic and social developments or (where stated) other matters. It does not contain advice or recommendations that may be relied on. Where links to external websites are provided, this does not indicate that Oxford Analytica or Emerald agree with, endorse or have checked for accuracy the contents of said sites.
2021
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