Beijing's regulatory crackdown on Chinese tech companies has revealed to American investors fundamental differences in the relationship each country's government has with its corporations.
The U.S. government "often acts as a servant to business interests," while Chinese authorities may want businesses to sacrifice profits in order to meet national development goals, said Gabriel Wildau, senior vice president at consulting firm Teneo. Political risk for Chinese companies has increased significantly, according to Zeren Li, whose doctorate studies at Duke University focused on China's version of the "revolving door" — the practice of people moving back and forth between government and the lobbying industry.
Beijing office towers, including Alibaba's, are illuminated with Chinese characters reading 'blessing to China' to celebrate National Day in October 2020.BEIJING — American investors' shock at an ongoing regulatory crackdown in China points to a fundamental difference between the two countries that many didn't seem to grasp: When it comes to making the rules, corporations don't have as much influence in China as they do in America.
U.S. investors in Chinese companies have been caught off guard this summer by a slew of actions Beijing has taken against homegrown tech companies, including several whose shares trade in the United States. Among the surprises was
It's a good thing no one follows CNBC on Twitter because the replies are just as embarrassing as the headline
It truly is terrifying for you to imagine a world where corporations don't write the rules, isn't it?
CNBC going to turn me into a Dengist
Sort of saying the quiet part out loud there.
That sounds like a good thing.
The corrupt corporate rule needs to end in the US. It's repugnant how greedy those people and our bought off Congress is.
Good for China and its people. Thanks CNBC for finally telling Americans that their country and its democratic institutions are ruled by a handful of billionaire sociopaths. Now tell them what's the real purpose of 800+ military bases around the world.
Thanks for acknowledging the corporate capture of our government. Capitalism isn't flawless and going too far in that direction is obviously bad, as evidenced by the declining U.S. in almost every metric.
Please, tell me more...
That's one reason China eliminated extreme poverty. That's one reason the U.S cannot eliminate any poverty. SOSUSA
Way it should be
Are you suggesting that American corporations make the rules? Are you sure you wanna be saying that out loud?
Omg omg omg.🤣🤣🤣
Hard lesson for US people: US companies make the rules in USA.
This is weird af. US media and govt really stay riding on corporate interests and demonize China for not doing the same lmfaooo
the tacit implication that they do in the US
...like they do in the US
Nice👍 US should learn a thing or two from China.
The implication being that U.S. companies make the rules in the U.S., then? Also, it's a good thing that 'Chinese companies don't make the rules in [the PRC]'. No companies should make the rules in any country.
You have no idea how cool this makes China sound.
Cool
Companies shouldn't here either.
Nothing is private in China. Not small businesses, not big business, and not even the details of people's personal lives. These 'smart money' investors were morons not to see what has been obvious the entire time.
good luck