“Red envelopes”, referring to the traditional cash prize distribution, will be distributed to 200,000 winners and they will have to download an app to use the prize for purchases at designated locations. in the city. Those who want to buy lottery tickets can register from 6/6. The winner will be announced a few days later and will have to spend the prize money by June 20. China is a promising player in the global race for central bank digital currencies (CBDCs) and has conducted trials in several major cities such as Shenzhen and Shanghai. The trial in Shenzhen in January awarded a reward of 20 million yuan. The People’s Bank of China (PboC) aims to be the first major central bank to issue an eCNY, part of an effort to internationalize the yuan and reduce its dependence on the global banking system without USD prevails. eCNY may also weaken Ant Group’s Alipay and Tencent’s WeChat Pay in payment systems.

A poem by a poet of the Tang Dynasty, about the phenomenon of burning books in the Qin Dynasty. “What CEO Wang posted is an anti-government poem. It shows that he is under a lot of pressure because of the investigations,” said Hao Hong, an analyst at Bocom International in Hong Kong. CEO Wang deleted the post on May 9 and denied the above rumor. He claimed to only use the verse to refer to the company’s competitors. A spokesperson for Meituan made a similar comment. Mr. Wang Xing, CEO of Meituan. Photo: China Daily. In October 2020, billionaire Jack Ma publicly criticized the Chinese banking system. As a result, Jack Ma’s startup Ant Group was forced to stop its $35 billion listing, Alibaba was investigated and fined $2.8 billion for violating antitrust laws. “Many people think that the poem posted by Wang Xing is a criticism similar to what Jack Ma said. This is not the time for Chinese businessmen to raise their voices.” Bloomberg quoted Kerry Goh, Investment Director of Kamet Capital Partners as saying. In recent years, the Chinese government has tightened supervision of technology companies. The Hang Seng Technology Index is down a record 30% from its peak in February. Meituan is also the subject of investigation by Chinese authorities for monopolistic behavior. Meituan is accused of forcing merchants to sign exclusive business contracts on its platform. On May 10, the Shanghai Consumer Council criticized Meituan for infringing on the rights of consumers.

Huang Zheng, founder of Pinduoduo (left) and Wang Xing, founder of Meituan – Photo: Bloomberg/Getty Images. Huang Zheng, founder and CEO of e-commerce firm Pinduoduo, and Wang Xing, founder and CEO of food delivery platform Meituan, have seen their fortunes plummet after being criticized by an activist group for consumers. According to Forbes, the share price of this Pinduoduo 11/5 fell more than 9%, “blowing” $ 4.3 billion from Huang Zheng’s assets. The founder of Pinduoduo is currently worth $42.9 billion according to Forbes’ real-time statistics, making him the 4th richest person in China. Meanwhile, Wang Xing’s fortune fell by $2.5 billion as investors continued to sell off Meituan shares in the May 11 session. The share price fell another 5.3% after falling 7.1% in the previous session. Wang is currently worth $19.5 billion. A day earlier, the Shanghai Consumer Council said it had convened both Pinduoduo and Meituan. The organization criticized Pinduoduo for its poor quality goods, rampant counterfeiting on the company’s e-commerce platform, and poor after-sales service. The organization also condemned Meituan for issues with refunds, failed food deliveries and misleading content on the company’s platform. The statement of the Shanghai Consumer Council comes as the Chinese government is tightening control of the country’s largest technology firms. Last week, Wang was also criticized after posting a poem of a Tang poem allegedly intended to criticize the Chinese government on the social network Fanfou. The poem titled The Book of the Dead (Book Burning Pit) by poet Zhang Jie, written at the end of the Tang Dynasty, condemns Qin Shi Huang’s act of burning books to control people’s thoughts and suppress the mind. awake. The poem is meant to mock Qin Shi Huang for seeing academia as the greatest threat, but his reign was eventually overthrown by non-intellectuals. A few days later, Wang deleted the post, explaining that the poem was just a reminder that “the most dangerous enemies are often the ones we least expect”. The 42-year-old CEO also added that Meituan’s biggest rival appears to be Ele.me but is in fact “unnoticed companies and business models that are disrupting the food delivery industry”. Late last month, Beijing’s anti-trust authority officially launched an investigation into Meituan’s alleged request for sellers to be allowed only the Meituan platform or another competitor. Since then, the company’s stock price has fallen by nearly 18 percent. On Weibo, many Chinese netizens compared Wang’s posting of the poem to Jack Ma’s speech criticizing the financial management system in October 2020. The co-founder of Alibaba at the time even said bluntly that Chinese banks operate like “pawn shops”. Jack Ma’s speech is said to spark a series of strong moves by Chinese authorities against Alibaba as well as its subsidiary Ant Group. Ant’s “big” IPO was suspended a few days later. And Alibaba was fined a record $2.8 billion for monopolies last month.

Meituan is China’s largest food delivery app. (Photo: QZ) A big storm hit after Meituan founder and CEO Wang Xing posted a poem from the Tang Dynasty on social media last week. The article on the Fanfou website has since been deleted, but Meituan confirmed it contains the poem “The Book Burning Pit” by author Zhang Jie written more than 1,100 years ago to satirize Qin Shi Huang. According to historical records, Qin Shi Huang quelled dissent in the country by digging huge holes, burning books not approved by the government, and burying scholars to prevent people from condemning him. Some comments on social media suggested that Wang may have posted the poem to implicitly criticize the Chinese government, which is holding back the country’s largest technology firms. Others compared the post to Alibaba founder Jack Ma’s speech last year, when he smacked China’s central banks and financial regulators for using outdated methods. Jack Ma’s speech seems to have angered the authorities. Ant Group’s historic IPO was also suspended at the last minute. Meituan and many other “big players” such as Alibaba and Tencent have been fined or investigated and monitored for several months now for violating monopoly or affecting consumer rights. The poem, which is more than 1,100 years old, further reveals the predicament that awaits companies like Meituan. Meituan stock fell 13% from May 6 to May 11, wiping out nearly $30 billion in market capitalization. Currently, the stock recovered slightly, gaining 2.5% at the close of the session on May 12. CEO Wang later posted an explanation, saying that the poem was about Meituan’s competitors. “The Qin Dynasty was afraid of scholars, but Liu Bang and Xiang Yu – the people who overthrew the Qin Dynasty – were not educated. That reminds me that the most dangerous enemies are not the people expected. Alibaba focused on JD.com and then Pinduoduo surpassed in terms of users. Similarly, Ele.me is seen as Meituan’s biggest competitor, but what really shocks the entire industry might be a certain business, business model that hasn’t caught our eye yet.” In April, Meituan and dozens of other companies were warned when Alibaba received a record $2.8 billion fine. Chinese authorities said Alibaba was fined for behaving like a monopolist. They also tell businesses that if they don’t address monopolistic behavior, they will be similarly punished. Later, China’s State Market Regulation Authority opened an antitrust investigation against Meituan for “exclusive trading arrangements”. The company was summoned by many agencies, including the Shanghai authorities, about the interests of customers. According to analysts Fitch Ratings, regulatory risks with China’s internet sector tend to escalate. The agency has not ruled out any fines with other companies after what happened to Alibaba. One netizen commented: “The poem is very suggestive. Wang Xing posted it at a critical period of the Big Tech crackdown. This is clearly inappropriate action. Wang may mean his rivals, but investors don’t think so. This is a very sensitive moment.” Du Lam (According to CNN)

According to the Bloomberg Over the past time, many international experts have expressed concern about China launching a national digital currency. British historian Niall Ferguson predicts that the digital yuan threatens to threaten America’s dominance in the global financial industry. Michael Hasenstab, head of investment fund Franklin Templeton, said that the digital yuan will weaken the position of the dollar, the reserve currency in the world. The administration of US President Joe Biden is studying the potential threat of the digital yuan to US national interests. However, those who are actually using their digital NTD are indifferent. Shenzhen is the city that runs the largest-scale digital yuan testing campaign. Reply Bloomberg Participants said they were not interested in leaving Ant Group or Tencent Holdings’ online payment apps. Online payment apps have been replacing cash in China for a long time. Photo: Getty Images. No conversion is intended “I’m not excited at all”, Bloomberg quoted Patricia Chen, who works in the telecommunications industry, as saying. She is one of more than 500,000 Shenzhen residents eligible to participate in the digital yuan trial. In this test, participants will download the government’s e-wallet application on their phones, connect to their bank accounts, and can convert up to 10,000 yuan ($ 1,548) in cash to digital currency. number (e-CNY). Similar to Alipay’s Ant Group app and Tencent’s WeChat Pay, digital yuan transactions are done very quickly using QR codes. When there is no Internet, users can use near field communication technology to make payments. Vera Lin – 25, an employee of a financial company in Shenzhen – said using digital yuan is quite easy. However, she has no intention of switching to digital yuan as the current online payment applications work seamlessly with other e-commerce services and platforms. Many people in Shenzhen said they have no intention of switching to digital yuan altogether. Photo: Reuters. Many stores participate in a trial of a 10% discount on digital yuan customers. However, that was not enough to convince Lin. She said Ant Group or Tencent’s platforms often offer discounts on many services, from ride-hailing to food delivery. Privacy is also a concern for Jan Chen, a 33-year-old civil servant. “The fact that the authorities can track every payment transaction is scary,” Chen said. I’m not excited at all User Patricia Chen In addition, some merchants and store owners revealed that they are concerned that information about all transactions goes directly to government databases even though the People’s Bank of China (PBOC) previously secured most of the delivery. translation will be confidential. In March, a representative of the Institute of Cryptocurrencies Research confirmed that PBOC will not directly know the identity of the user. However, the Chinese government may obtain information from financial institutions if it is suspected of illegal conduct. In addition, PBOC also encourages stores and merchants to use digital yuan by using free of charge. Currently, Alipay and WePay apps charge 0.6% per transaction. Difficult to take market share The yuan currently accounts for only 3% of total global payments. Expert Zennon Kapron, Director of consulting firm Kapronasia (Singapore) said that the digital version will only help the Chinese currency increase its market share by 1%. “The global impact of the digital yuan will be very small, unless China changes its economic structure and financial system,” said expert Kapron. Chinese officials themselves also show restraint when talking about the digital yuan. Last month, Mr. Li Bo – PBOC’s deputy governor – affirmed that China is developing a digital yuan to serve the domestic market, not with the intention of replacing the dollar. Previously, former PBOC Governor Zhou Xiaochuan said the digital yuan was a solution to help China fight the potential threat from cryptocurrencies like Bitcoin. Kapron predicts that if the digital currency fails to attract users, the Chinese authorities will take steps to increase the control of data collected by internet and financial companies such as Ant Group and Tencent. . Bloomberg Intelligence analyst Francis Chan also thinks that Chinese authorities can force Internet platforms and businesses to use the digital yuan. Chan and BI analyst Sharnie Wong predict that the electronic yuan will be widely used in China before the 2022 Beijing Olympics. It is likely that the digital yuan will take up 9% of the domestic online payment market share by 2025. That will be a big change, but the digital yuan still has a long way to go before the challenge. status of Alipay and WePay. These two payment applications account for a total of 90% of the market share in China. Expert Michael Ho, director of financial services at Oliver Wyman, also said that convincing the world to accept the digital yuan even more difficult.

According to the Bloomberg Chinese tech giants like Jack Ma’s Alibaba and Tencent Holdings operate similarly to America’s Facebook and Alphabet. They mine user data to refine digital services. Data strengths will lead to better products. As a result, large technology corporations become richer, more powerful and easily dominate the market. Over the years, the Chinese government has gone further than the rest of the world in tightening control of the Big Tech group. In March, Beijing publicly plans to “rule” platform companies that accumulate data to monopolize and swallow smaller competitors. Chinese authorities fined Alibaba $ 2.8 billion for abusing their dominant market position. Dozens of other major Internet companies also spent a month correcting their anti-competitive practices. China is tightening control of major tech corporations, including Alibaba and Ant Group of billionaire Jack Ma. Photo: Reuters. Risk of nationalization of data Beijing is pouring money into digital infrastructure, drafting new data usage laws, and building new data centers across the country. China’s goal is to be at the forefront of economic transformation in the coming decades. “It’s not a short-term initiative. China really sees data as an economic engine,” said Kendra Schaefer, Head of Digital Research at Trivium China. According to the China Institute of Information and Communication Technologies, China’s digital economy grows much faster than GDP in 2019. Market research firm IDC predicts China will hold about 1. / 3 of the world’s data in 2025, or about 48.6 zettabytes, 60% more than the US. The Chinese regime’s challenge is to get big tech companies to join. Those are the organizations that hold the most data in a country of 1.4 billion people. Companies like Alibaba and Tencent have benefited when China blocked foreign companies like Google and Facebook. Now, they have to share those benefits Professor Zhao Yanqing At a Chinese economic forum, professor Zhao Yanqing at Xiamen University pointed out that big tech companies have to nationalize data. “Companies like Alibaba and Tencent benefit when China blocks foreign platforms like Google and Facebook. Now, they have to share those benefits,” he added. However, most analysts say that is unlikely. Nationalization of data can hamper innovation. Beijing is in need of technological breakthroughs as the US works with its allies to prevent China from making new strides. “China needs highly competitive companies,” said Associate Professor Lizhi Liu at Georgetow University. “Nationalization of data will hurt technology companies. If data is taken away, they also lose their motivation and ability to innovate,” the expert added. Beijing’s difficult position In recent years, Chinese lawmakers have turned their attention to security. According to a law in 2017, authorities will have access to most personal data when necessary, even requiring foreign businesses to store data of Chinese customers in the country. Chinese leaders are now stepping up the use of big data to improve government services. Firefighters can use data to respond more quickly to calls. Hospital data will help track people down and prevent Covid-19 from spreading widely. Data lays the foundation for everything from smart cities to financial regulation to surveillance activities against dissidents. The Chinese authorities are also developing the digital yuan, competing with Ant Group’s Alipay and Tencent’s WeChat Pay. These two platforms now dominate the Chinese mobile payments market. Ant Group’s Alipay and Tencent’s WeChat Pay now dominate the Chinese mobile payments market. Photo: Reuters. The digital yuan will allow the People’s Bank of China to collect huge amounts of data about people’s transactions. Authorities have also made significant progress in the corporate social credit measurement system, from paying taxes, protecting the environment to product quality. The Chinese authorities insist that they will not force businesses to deliver data. “As for the use, development and exchange of data, we are still exploring the mechanisms,” said Hu Jianhua, deputy general manager of the Guizhou Big Data Development Administration. “Enterprises have ownership of the data. We encourage, but do not force them to, disclose the data,” he added. Data privacy is China’s “biggest obstacle” in dealing with the tech giants Expert Angela Zhang of the University of Hong Kong Another solution is that the government also invests in businesses. Last month, Bloomberg reported that China has proposed to set up a joint venture led by the People’s Bank of China (PBoC) with major technology corporations. The joint venture will monitor the data of hundreds of millions of users. Financial Times reports that billionaire Ma’s Ant Group declined the proposal. However, according to Bloomberg , a few years ago, when not agreeing to share data with the PBoC, Alibaba and Tencent faced many troubles. “Data privacy is China’s ‘biggest stumbling block’ in dealing with the tech giants. There is a conflict in protecting user privacy and fostering competition among these giants. Different backgrounds, “commented Angela Zhang, director of the China Law Center at the University of Hong Kong. China’s biggest companies are also looking to reduce damage from Beijing’s new rules. After Alibaba’s investigation is over, CEO Daniel Zhang said the company will continue to work with the data privacy regulator. Last month, Tencent’s Pony Ma proposed stricter rules for Internet businesses, including Tencent. He also has a “voluntary meeting” with the country’s antitrust agencies.

According to the New York Times billionaire Jack Ma – China’s most famous businessman – is away from the limelight. Close people revealed that he spent his time painting and practicing tai chi. The Chinese government is bringing a series of technology corporations into sight. The enormous wealth and influence of these businesses are said to be beyond the limit. Jack Ma, Alibaba e-commerce conglomerate and fintech (finance and technology) company Ant Group are Beijing’s biggest targets. European and American authorities have been trying to tighten control of the tech giants for years. However, they cannot make a big difference like what happened to the Alibaba founder in China. The Chinese government insists that businesses must commit to placing social stability above profits. Tencent founder Pony Ma (left) and billionaire Jack Ma at an event in Beijing in 2018. Photo: New York Times. The unprecedented “punishment” campaign The Beijing government is not just tightening the control of Alibaba. Ant Group CEO Simon Hu resigned in March. Just a few days later, Pinduoduo founder Colin Huang stepped down as chairman. Also in March, at a meeting, Tencent founder Pony Ma proposed stricter rules for Internet businesses, including Tencent. He also has a “voluntary meeting” with the country’s antitrust agencies. Last week, China’s antitrust agency summoned top 34 Internet companies to discuss new rules of fair competition. The discussion revolves around changes in business. Companies are committed to taking it seriously. “The new rules will require Internet platforms to look back on how they innovate in the future. And as a result there will be less innovation,” said Gordon Orr, a board member of Meituan, company. Chinese food delivery, comment. However, New York Times The Beijing government will not be too heavy on Alibaba and other Chinese Internet corporations. Even as tightening oversight, Beijing still praised the group’s contributions to the economy. Pinduoduo founder Colin Huang stepped down from his chair as the company’s chairman. Photo: New York Times. Chinese President Xi Jinping wants the economy to be driven by innovation from Chinese tech corporations, instead of big foreign ones. “It may be too early to declare that Jack Ma has failed”, New York Times comment. “To the success and performance of the Chinese economy, Alibaba is more important than any other business,” commented Richard McGregor of the Lowy Institute. “The Chinese authorities want to continue reaping the benefits of Jack Ma’s company, but on their terms. Beijing doesn’t nationalize Alibaba. The company is just narrowing its operations.” “Alibaba has a perfect opportunity to grow into a world-class company,” said Wang Guoping, an official in Hangzhou city (where Alibaba is located), in the 2000s. “What a world-class company needs most is a soul, a leader, a world-class businessman. I believe Jack Ma meets those standards, “he added. Change your attitude According to Porter Erisman, one of Alibaba’s first executives, in the 2000s, most employees at Alibaba were just trying to make a lot of money. Jack Ma alone had another concern. He fears that one day the company will become too big. And Alibaba could be under pressure for holding huge market power. In 2011, Jack Ma understood that his ambitions could make regulators dissatisfied. Ma quietly took over Alipay – Alibaba’s payment service. That move angered one of Alibaba’s biggest shareholders – Yahoo -. However, according to Jack Ma, that is the action needed to meet the new Chinese regulations. Alipay later became Ant Group. As Alibaba grew, Jack Ma began meeting presidents and movie stars admired by many Chinese businessmen. “That changed the views of Jack Ma about himself and the Chinese government,” said Duncan Clark, Chairman of BDA China, commented. Mr. Simon Hu, CEO of Ant Group, resigned in March. Photo: New York Times. When Jack Ma stepped down as Alibaba chairman in 2019, a Chinese state-run newspaper commented: “There is no such thing as the Jack Ma era, only Jack Ma is part of this era.” Chinese leaders need the private sector to sustain economic growth. However, they do not want this area to exert too much influence on society. In October 2020, when Ant was preparing to go public (IPO), Jack Ma criticized Chinese financial regulators at a conference in Shanghai. He describes the Chinese banking system “operates like a pawnshop.” Shortly after, Ant’s IPO was ordered to be canceled. The Chinese government wants to continue reaping the benefits of Mr. Ma’s company, but on their terms Richard McGregor, senior fellow at the Lowy Institute “In China, it is difficult to say that the emperor is not dressed,” commented Kellee S. Tsai at the Hong Kong University of Science and Technology, referring to the short story “The Emperor’s New Clothes”. Mr. Ma has also rarely appeared since then. According to the source of the New York Times , in January, he showed up for an internal chat. The staff then shared Mr. Ma’s message to reassure everyone. Recently, the Hurun Report team (based in Shanghai) estimated that for the first time after 3 years, Mr. Ma was not among the three richest people in China. First place belongs to Mr. Zhong Shanshan, a well-known billionaire behind a group of famous bottled water and pharmaceutical companies.

In addition, this company will serve other financial institutions such as state-owned banks to compete in lending with fintech companies. According to a source close to the Financial Times, Ant Group wants to lead the new company. But PBoC said that this will create a conflict of interest. China wants to take control of Ant Group’s huge data warehouse. (Photo: FT) “The first priority is to ensure that the new business fully complies with the regulations. State participation will help the PBoC achieve those goals,” a source revealed. In January, the PBoC announced regulations requiring Chinese companies to secure government approval before being allowed to provide personal credit services. These companies have to ensure that they have 3 licenses and all are subject to government control. PBoC officials held a conversation with Ant Group executives on April 12. This month, Chinese regulators also asked Ant Group to restructure and sanction Xi. Alibaba Group Jack Ma’s record fine of 2.8 billion USD. Banks in China have long complained that Ant Group has benefited by not having to comply with the same strict regulations on lending as they do. The company has established a dominance in China with more than 700 million users a month on Alipay, an Alibaba mobile payment app. By the end of June 2020, Ant Group had developed a consumer lending platform with outstanding credit to about 1,700 billion yuan ($ 262 billion), more than any Chinese bank. Come on. In addition, the fintech company charges banks for loans on their apps. “Ant Group’s credit database offers a lot of value to banks,” said a former PBoC official. A person knowledgeable about this issue commented: “Ant Group needs to find a way to legalize this data warehouse. The proposed solution is to set up a credit reporting company approved by PBoC”. But there are also opinions that state control could affect the ability to collect and analyze information for Ant Group’s core business units, including consumer lending. “Ant Group really wants to hold on to its most valuable assets,” said a source. The central bank of China will release a report this Sunday on the creation of a state-controlled data company. However, neither Ant Group nor the PBoC have yet to comment on this. Phuong Anh (According to Financial Times)

Over the past few years, the American electric car maker has received favor from the Chinese authorities. However, in recent months, Tesla has received fierce criticism. In March, the news agency Bloomberg citing some sources about the Chinese military’s claim that the omnidirectional cameras and ultrasonic sensors on Tesla vehicles could reveal the location. Therefore, the ban on the company’s vehicles to ensure the security of military information. Accordingly, all Tesla car users were required to park outside military complexes. In February, Tesla cars manufactured in Shanghai were also investigated by Chinese authorities for quality and safety. At the same time, Beijing is also putting pressure on technology companies operating in the country on the issue of user data. The administration’s campaign has targeted Ant Group, the financial technology company under Alibaba. Ant pledged to “strengthen the protection of personal information” after reforming its business at Beijing’s request. Tesla considers a market of 1.4 billion people to be an important part of its growth plan. Photo: Reuters. Elon Musk, CEO of Tesla, reassures China that his company is not doing anything inappropriate. In the interview with CCTV Musk dedicates many winged words to this country. Electric vehicle CEO pledged that China will become the “biggest market” for electric vehicle manufacturers in the long run. “I am very confident about Tesla’s future in China,” Musk said CCTV . “I believe that the Chinese economy can grow extremely well in the next decade and will become the top economy in the world. The country is also committed to a sustainable energy future,” said Tesla CEO. added. Although he doesn’t speak Chinese, Musk remains one of the most popular American business leaders in China. Earlier last year, a video of him dancing on stage during the Model 3 launch was circulated on Weibo, a popular social network in China. Musk also has about 1.7 million followers on Weibo, more than Apple CEO Tim Cook. Tesla’s revenue in China in 2020 grew 124% from a year earlier, largely thanks to Model 3 sales (137,000 units). According to the China Passenger Vehicle Association, the Model 3 is the best-selling electric car in the 1.4 billion population.