Chinese Economics Thread
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The why are they not valued correctly in your opinion. In fact even compared to just a few years ago?
Why will the government not allow it? Is there a particular problem with Alibaba/Ant financial?
If I remember correctly a few years ago they were close to list and raise the biggest IPO in human history(it was being talked about and advertised everywhere back then)). However they were abruptly stopped by the government and the rest is history.
Seems there is a major issue between Alibaba finance arm and the government? Think they must have done something very wrong to cross the authorities. Hopefully they have moved passed that. If not then even this listing will not happen I'm afraid.
Unless regulated this stuff is dangerous to the welfare of the population:
I think people don't understand what China did. They thought it was some kind of vendetta against Jack Ma. No, there are some real concerns with the whole model. People are finding out now:
Yeah but couldn't the government come out with explicit laws that regulates this sector and mandate companies like that to follow that?
Seems regulators were kinda behind with enacting laws to this fast changing industry, so ant also paid for that as well.
Moreover, it seems Jack Ma also had some fallout with authorities. I don't think he disappeared or stop appearing for a long time for no reason, and he stopped being as outspoken as he was since he started Alibaba. In fact we don't even hear about him again. He's very very low key now after he had to leave Alibaba as the CEO. That's not a coincidence in my opinion. I also think he was a bit to chatty, acting charismatic and flamboyant for a Chinese CEO which is unusual in China. The guy was behaving more like a western CEO to some extent. Lol
He became a security risk, plain and simple. He should have been charged with treason.
They're not and I don't know why you think that. There are all sorts of strategic industries that get insane subsidies in the West.
Just because something is "private", doesn't mean it's actually private. You know what I mean?
If those few that bring innovation do not benefit majority, then they are worthless. So ultimately it is still about benefit the majority, and that only.
Given US government spending as % of GDP is 36%, farming the government is a lucrative career. Look at how many people were feeding off USAID, a small fish in government spending.
This is quite common in the West and in Anglo nations actually, with the government giving special privileges to various private companies. Various colonial enterprises, say the East India Company, were given monopolies enforced by the government. In that case, it is more the case these companies (and their owners) are profiting off the government rather than the government controlling these companies.
BTW, you can see this in action today. Certain individuals have gotten into government and in return are rewarded with a monopoly of government contracts: .
(Just an aside, but I'm surprised that Chinese diaspora does not look into US government/civil service as a potential career path. When I was growing up working in a government position was never an option. )
Not enough money for the risk. Becoming a doctor is more money and less risk of persecution.