China’s crackdown on the empire of Jack Ma is very far from over. Recent updates call that country’s regulators have ordered Jack Ma founded Alibaba affiliate Ant Group for scaling down its business. In particular, they have ordered that the company has to return its origin as a payment provider. Ant Group started out as Alipay, this is the platform that helps in sending, receiving, and accepting payments. And this is considered to be one of the largest digital platforms ever prevailing in China. Pan Gongsheng, deputy governor of China’s central bank, called these services illegal and has also said to rectify those activities. The Guardian noted these services are the most profitable and fast-growing divisions.
Gongsheng listed down all the steps Ant Group are required to take, as per the orders of Chinese regulators. All the requirements include unfair competition, improving cooperate governance, and ensuring that everything that was done is in accordance with the law. Furthermore, the company told The Guardian in a statement that it is going to form a rectification working group just to implement all those requirements.
Back in the month of November, Chinese regulators also blocked Ant’s planned IPO in Hong Kong and Shanghai that was there expected to raise $34 million. There are many new draft laws as well that have been explained just to oversee tech companies, data collecting activities, and many other rules for protecting our consumers. Ergo, a few days ago regulatory opened an investigation into Alibaba’s suspected monopolistic conduct.
Jack Ma’s business seems to be targeted after he called down the Chinese state-owned pawnshops just to handle out unnecessary loans at a finance summit in Shanghai that too in October. Bloomberg reports say that companies have been there in crisis mode since then and all the executives formed a force task as well just to deal with the government watchdogs on a daily basis.