• About Us
  • Careers
  • Brand Partnerships
TFI Official Merchandise
TFI English
TFI हिन्दी
Thursday, June 8, 2023
TFIGlobal
TFIGlobal
Right Arm. Round the World. FAST.
No Result
View All Result
  • Premium
  • Indo-Pacific
  • Americas
  • Canada
  • Indian Subcontinent
  • West Asia
  • Europe
  • Africa
  • The Caribbean
  • Premium
  • Indo-Pacific
  • Americas
  • Canada
  • Indian Subcontinent
  • West Asia
  • Europe
  • Africa
  • The Caribbean
TFIGlobal
TFIGlobal
No Result
View All Result

With new Bankruptcy laws, Xi Jinping making sure there is no other Jack Ma in China

Sohil Sinha by Sohil Sinha
March 9, 2021
in India China Latest News
Reading Time: 4 mins read
0
Xi Jinping, Jack Ma, bankruptcy law, china, Chinese Market, Chinese Economy, Communist Party of China

[PC:FinancialTimes]

196
VIEWS
Share on FacebookShare on Twitter

Chinese President Xi Jinping has decided to push for a series of new financial institution bankruptcy laws. These laws will focus on keeping control or rather suppress the companies which are found to be hindering market efficiency. Such “bad apples” like Jack Ma’s Ant group shall be made isolated,  or if needed, uprooted from their very existence. Xi Jinping wants to make sure that no one questions his authority.

The Ant group, led by Jack Ma’s Alibaba group was expected to raise $34.5 billion in October last year. If it would have been successful, it could have been the world’s largest IPO and evaluate the company at a massive $313 billion. But the party took a nasty turn and on the eve of the IPO, the Chinese Communist Party stopped the entire process from moving forward. Since then, Xi Jinping has made it a point to systematically dismantle the Ant Group.

Also Read

How was BRICS formed and why is it yet to achieve its true potential

France and Italy defy Biden’s diktat of banning Russia completely

Xi Jinping, Jack Ma, bankruptcy law, china, Chinese Market, Chinese Economy, Communist Party of China
[PC:AsiaNikkei]
A revision in the newly enacted Bankruptcy laws is urgently needed, according to Guo Xinming, the head of the People’s Bank of China (PBOC), the Nanjing branch and an NPC delegate. Guo said in a written response to Reuter’s questions that without such laws to deal with distressed banks or other financial institutions deemed “bad apples” would continue to stymie market performance. This law could also be seen as a tool to be used by Xi Jinping to cut the wings of big and upcoming firms to stop them from getting bigger than the CCP.

Technically insolvent companies have been unable to exit the market due to the lack of a legal bankruptcy process for Chinese financial institutions.

Read More- After a government backed virus, a government backed spyware brought to you by the Chinese Communist Party

“Some institutions may have exited from the market on paper but, in fact, it is difficult for them to write off debts in a timely and effective way, which creates hidden dangers that will ‘ferment’ and become future risk events,” he said. This new bankruptcy law came at a time when Xi Jinping is hell-bent on destroying the Ant Group through regulation, legislation and investigations.

Xi Jinping’s recent rolling out of the new banking regulations laws will directly attack the leftover ambitions of the Ant group. The new financial rules which were announced by China’s financial industry watchdog is going to disturb the micro-lending model of the Ant group. On papers, these regulations are for strengthening the bank’s risk management system. But in reality, it will suffocate the Ant group’s primary revenue sources which are small businesses sprinkled across all the country. This decision of the Communist nation is to restrict the number of banks a single financial technology company like Ant can partner with. Xi Jinping’s anti-trust probes against the technology sector are causing unprecedented stock market losses for Chinese companies.

Xi Jinping, Jack Ma, bankruptcy law, china, Chinese Market, Chinese Economy, Communist Party of China
[PC:CaixinGlobal]
It was speculated that Chinese President Xi Jinping was personally involved in stopping the Initial public offering of the Ant Group after Jack Ma infuriated the government leaders. This entire embarrassment fiasco for Jack Ma was not the product of a single instance, but it was the culmination of years worth of tense relations between Jack Ma and the government because of his increasing footprints.

Ma’s rapid growth from humble beginnings and the control he has over the digital payment sector in China has been seen as the major cause of worry for the Chinese government. His potential to challenge Xi’s authority poses as the greatest threat to the soft ego of Xi Jinping.

The threat to Ma’s ambitions grew graver last October when he criticised China’s regulators at a major conference in Shanghai. He blamed the existing system of the country and questioned the authorities on their repeated attempts to choke the innovation and publicly called the country’s banks mere “pawnshops”. This questioned Xi Jinping’s authority and placed him in the bad books of the CCP.

Jack Ma was once the personification of the Chinese dream. Party favoured him over others because of his likeable and flamboyant personality. He represented a version of China that the Party’s Propaganda machinery was trying to produce for a very long time. He gave China a tool that it has always lacked, a non-threatening soft power image.

The result of Ma’s bravado was seen very soon. The Ant officials and Jack Ma were summoned by the government regulators who in turn halted the IPO of Ant Group. The regulators even went on to scrutinise Alibaba which now faces anti-trust investigations. Ma also vanished from the public sight for almost three months.

This all indicates that even though the tech tycoons, who often are the face of China’s glamorous growth, are not allowed to criticise the actions of the Chinese Communist Party. If the individuals or companies reach for that inaccessible high so they can challenge the party’s authority, they will be systematically dismantled and their owners will most likely disappear forever. In short, no individual or company can ever be bigger than the Party.

It is quite clear now that the Chinese government is increasing its pressure on the country’s technology moguls every day. There would not be another Jack Ma in China and with the new bankruptcy laws, Xi Jinping will make sure that the demise is quick and effective.

Tags: bankruptcy lawChinaChinese EconomyChinese MarketCommunist Party of ChinaExhaustive ReadsJack MaXi Jinping
ShareTweetSend
Previous Post

Global media needs to get over their obsession with the Royal British family and the Meghan Markle Prince Harry Story

Next Post

Ahead of the Quad meeting, desperate Beijing trying to placate India

Also Read

1 election in tiny Solomon Islands has 2 major countries engaged in a geopolitical tussle

1 election in tiny Solomon Islands has 2 major countries engaged in a geopolitical tussle

September 11, 2022
China wants the sanction-proof Indian economy to help it brave Western sanctions

China wants the sanction-proof Indian economy to help it brave Western sanctions

July 2, 2022
Qatar built its flashy FIFA stadiums with blood of migrants; now it’s paying a big price

Qatar built its flashy FIFA stadiums with blood of migrants; now it’s paying a big price

June 12, 2022
iNDIA, CHINA ,OLYMPICS, RUSSIA

Russia and China blamed almost every country in their joint statement but avoided criticising India and Japan

February 6, 2022
Load More

Leave a Reply Cancel reply

Your email address will not be published. Required fields are marked *

I agree to the Terms of use and Privacy Policy.
This site is protected by reCAPTCHA and the Google Privacy Policy and Terms of Service apply.

  • Trending
  • Comments
  • Latest
11th July: The date set by Victoria Nuland for WWIII

11th July: The date set by Victoria Nuland for WWIII

May 31, 2023
Its Official: Biden is waving white flag against Iran

Its Official: Biden is waving white flag against Iran

June 2, 2023
A military emergency could soon be imposed in Europe

A military emergency could soon be imposed in Europe

June 2, 2023
Oh Well, Germany is Planning a War with Russia (Psst… to Win Elections at Home)

Oh Well, Germany is Planning a War with Russia (Psst… to Win Elections at Home)

June 1, 2023
Putin’s Odessa Ambitions are About to Come True

Putin’s Odessa Ambitions are About to Come True

June 1, 2023
How was BRICS formed and why is it yet to achieve its true potential

How was BRICS formed and why is it yet to achieve its true potential

June 8, 2023
An Ursula vs Meloni war has broken out and Meloni seems to be winning this one

An Ursula vs Meloni war has broken out and Meloni seems to be winning this one

June 8, 2023
Macron checks NATO’s advance into the Indo Pacific and we just know why he did that

Macron checks NATO’s advance into the Indo Pacific and we just know why he did that

June 8, 2023
5 things to know about the poorest country in Europe

5 things to know about the poorest country in Europe

June 8, 2023
Is the CIA planning to execute Zelensky?

Is the CIA planning to execute Zelensky?

June 8, 2023
Youtube Twitter Facebook
TFIGlobal
  • About us
  • Contact Us
  • Terms of use
  • Privacy Policy

©2023 - TFI MEDIA PRIVATE LIMITED

No Result
View All Result
  • Premium
  • Indo-Pacific
  • Americas
  • Canada
  • Indian Subcontinent
  • West Asia
  • Europe
  • Africa
  • The Caribbean

©2023 - TFI MEDIA PRIVATE LIMITED

Welcome Back!

Login to your account below

Forgotten Password?

Retrieve your password

Please enter your username or email address to reset your password.

Log In

Add New Playlist

Follow us on Twitter

and never miss an insightful take by the TFIGlobal team

Follow @tfiglobal
This website uses cookies. By continuing to use this website you are giving consent to cookies being used. View our Privacy and Cookie Policy.