Mr. Wang holds an 11% stake in China’s largest food delivery group. Meituan’s share price has fallen since last month when the State Administration of Market Regulations of China (SAMR) announced it was opening an investigation into Meituan for anticompetitive practices. Meituan stock price received a new shock on May 10 when CEO Wang posted on social media a poem Tang about the phenomenon of book burning in the Qin Dynasty. Many people think this is Mr. Wang’s way of criticizing the Chinese government for its campaign to tighten control of Internet corporations. Meituan’s stock price plummeted because CEO Wang Xing posted the ancient poem online. Photo: Xinhua. Billionaire Wang deleted the post shortly after, explaining that he used the poem to criticize Meituan’s competitors. However, it was all too late. The hashtag #MeituanSharePriceSlump (Meituan stock price plummeted) attracted 32 million followers on the social networking platform Weibo. At the same time, the Shanghai Consumer Council also heavily criticized Meituan for inappropriate business practices. Recently, the Chinese technology industry has been struggling because of the repressive measures of the Beijing government. The Hang Seng Technology Index is down about 30% from February. “The Chinese tech industry is going through a lot of ups and downs. Technology regulations are constantly being applied, leading to regulatory risks, making it difficult to forecast industry growth,” said Jackson Wong, head of asset management at Amber Hill Capital.

On April 19, a woman who claimed to be a Tesla customer climbed onto the roof of a Tesla car at a Shanghai auto show. She wears a T-shirt with the words “brake not working”. Tesla car owners in China have been complaining about brakes on social media for months. The Shanghai police identified the woman named Zhang and said she was sentenced to 5 days in prison for disturbing public order. Tesla is constantly in trouble in the Chinese market. Photo: Reuters. The three lessons of Tesla Tesla accused the woman of being involved in a “speed violation” collision in February. During two months of negotiations, she refused to have a third party inspect it but demanded a refund for the car. Reply to the magazine Caijing Tesla China Vice President Tao Lin revealed that the woman was demanding high compensation and the company had no reason to pay. In a post on Weibo, Tesla claims not to compromise with “unreasonable requests”. After that, state media and government agencies quickly reprimanded Tesla. State news agencies publish a series of editorials. The Chinese government’s Central Disciplinary Committee also issued a warning statement. An article titled “Three Lessons Tesla must learn” advised the American electric car maker to respect the Chinese consumer market. “The arrogant and bossy attitude that the company shows in public is deplorable and unacceptable. This could seriously damage the company’s reputation and customer base in the Chinese market, “said the report. The Hoan Cau Times criticize. Tesla apologized for failing to promptly address the vehicle owner’s problems. The billion-dollar country is an important market for Tesla. Photo: Reuters. In posts on Weibo, Tesla said it was “ready to cooperate with the authorities”. The company claims to “self-check and fix to fix” problems in the customer service process. Tesla expanded its market share to 1.4 billion people over the past two years. With the support of the Beijing government, Tesla built a large factory in Shanghai in 2019. Last year, Model 3 cars produced at this factory began to be delivered to customers. Tesla’s sales in China have more than doubled by 2020. The Model 3 is the best-selling electric vehicle in the billion-population market. Tighten control CEO Elon Musk even met Chinese Premier Li Keqiang in 2019. But success always comes with attention, especially as Chinese homegrown companies are looking for a foothold in the market. This country’s electric car school. China’s favorable policies for the electric car industry spurred the birth of startups like Nio and Xpeng Motors. These businesses did not hide their ambition to compete with Tesla, although sales were still far behind. “The leading company brings a lot of benefits to China. But when that company dominates the market, it no longer benefits Beijing,” said Bill Russo, founder and CEO of private companies. Investment, Automobility Limited, commented. Companies like Daimler’s Volkswagen and Mercedes have been under similar scrutiny in the past, he said. The leading company brings many benefits to China. But when that company dominates the market, it no longer benefits Beijing Bill Russo, CEO of Automobility Limited Negative news about Tesla has increased in China over the past months. In early 2021, a Tesla Model 3 is believed to have exploded in a Shanghai garage. According to a post in state media, there are at least 10 reports in 2020 of Tesla drivers being unable to control the vehicle. On April 13, on Dongjiang Avenue (Guangzhou), a Tesla caught fire after colliding with a roadblock and another vehicle, leading to the death of a passenger. After the incident, some Tesla owners said they were prevented from driving on highways. Chinese police appear to be blocking all Tesla vehicles from running on the highway because of safety concerns. On March 19, the news agency Bloomberg citing some sources about the Chinese military’s claim that omnidirectional cameras and ultrasonic sensors on Tesla vehicles could reveal the location. A Twitter account posted a picture with the caption: “In Guangzhou, #Tesla trams are not allowed to travel on highways”. Photo: Twitter. Therefore, the ban on the company’s vehicles to ensure the security of military information. All Tesla car users were required to park outside military complexes. In February, the China Market Administration (SAMR) met with Tesla’s subsidiaries to discuss vehicle quality. The agency’s statement on April 21 showed that they were very concerned about the incident at the Shanghai auto show. SAMR also directs local regulators to strengthen the protection of consumers’ interests. Billionaire Musk is looking for a way. In March, in an interview with state television CCTV China’s future “is going to be great,” he said, and that the country is “the biggest market” for Tesla.

Alibaba was fined $ 2.8 billion for alleged monopoly.

JD.com, Meituan and ByteDance lead China’s first group of Big Tech companies to commit to complying with the law after China Market Surveillance Agency (SAMR) asked them to “learn lessons” from Alibaba. Group Holding in Beijing’s latest antitrust investigation.

On April 14, 12 out of 34 tech companies released a public statement pledging to do business in compliance with the law after SAMR warned of Alibaba’s recent antitrust sanctions and conducted self-testing. next month.

Earlier, e-commerce giant Alibaba was fined a record $ 2.8 billion for forcing small businesses to sell exclusive products on the platform. Monopolistic behavior is understood as how businesses eliminate competition of competitors by forcing customers to choose “one of two”.

JD.com has made eight promises including “never taking measures to force sellers to choose either and never abusing a dominant market position or making any exclusive deals. “. The e-commerce group also said it will “never publish illegal advertisements and never sell products of substandard quality”.

Meituan’s delivery staff.

Meituan promised not to impose unreasonable measures forcing sellers to “choose one of the two” and would not abuse its market position to limit competition. In addition, the company is committed to providing full support to the Chinese regulatory authorities. “Once we find evidence of illegal conduct, we will report it to regulators in a timely manner and readily cooperate with any investigation,” Meituan said.

ByteDance, the owners of short video apps TikTok and Douyin, made 13 promises in its public statement. China’s most valuable unicorn company says it will “not illegally collect and misuse user data” and adhere to “minimum guidelines” in collecting data from users. E-commerce platform Pinduoduo said it will “proactively assume more social responsibility”, as well as comply with legal and regulatory requirements.

The rest of the companies are expected to announce their public commitment over the next two days

Beijing’s targeting of key Big Tech firms including Kuaishou, Bilibili and Didi Chuxing comes at a time when the Chinese government is resolutely using antitrust laws and other regulatory methods to halt. out-of-control expansion.

SAMR has accused major tech companies of misconduct such as forcing sellers to choose only one trading platform, abuse of market dominance, abuse of big data to unfair pricing. for certain customers, ignoring poor quality products, leaking customer data, and tax evasion.

“No one is allowed to cross the regulatory lines and not touch the legal red line,” SAMR said on Tuesday.

34 Internet service providers are on the spot, many of which are listed on US and Hong Kong exchanges. Companies were asked to “raise responsibility and give priority to the national interests”.

“Companies must absolutely avoid disordered capital expansion to ensure China’s economic and social security, you must absolutely avoid monopolies to ensure fair competition,” according to Beijing’s statement towards Internet service platforms.

SAMR says companies have one month to do a “self-check and self-repair”, after which the government will conduct follow-up and “severely punish” those companies that fail to address the misconduct.