In Just One Year, Beijing’s Crackdown Has Changed Corporate China Forever
China’s government kicked off a sweeping crackdown on its most powerful corporations a year ago, chilling investors and tech industry players alike by signaling that the leeway enjoyed by tech moguls like Jack Ma is coming to an end.
The campaign that started with Ma’s twin giants—Ant Group Co. and Alibaba Group Holding Ltd.—last November soon spread to more companies like Tencent Holdings Ltd. and Didi Global Inc., as Beijing stepped up oversight on everything from antitrust to data security and wealth distribution. The crackdown triggered a selloff that, at its most extreme, erased $1.5 trillion from Chinese stocks, which experienced wild swings with every new government probe, rule and warning.
Now at its one-year mark, there are signs that the clampdown may be slowing. But in its wake, the good old days of unfettered growth have given way to a new era where China’s private-sector giants are realigning themselves closer to the Communist Party. Here are the biggest moments in the 12 months since China’s tech crackdown began, as illustrated by the Nasdaq Golden Dragon China Index that tracks U.S.-listed Chinese stocks and is heavily weighted in tech.
GOLDEN DRAGON CHINA INDEX (HXC)
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GOLDEN DRAGON CHINA INDEX (HXC)
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12,500
15,000
17,500
20,000
GOLDEN DRAGON CHINA INDEX (HXC)
10,000
12,500
15,000
17,500
20,000
GOLDEN DRAGON CHINA INDEX (HXC)
10,000
12,500
15,000
17,500
20,000
Nov 3, 2020
Beijing fired its opening salvo at Jack Ma's fintech empire by suspending the world's biggest stock-market debut.
Dec 24, 2020
Regulators kicked off an investigation into alleged monopolistic practices at Alibaba.
Jan 20, 2021
The Alibaba founder resurfaced for the first time since China's crackdown to speak with rural teachers in a live-streamed video.
Mar 12, 2021
Regulators see Tencent as the next target for increased fintech supervision after Ant, Bloomberg reported.
Apr 29, 2021
Regulators imposed Ant-style curbs on the fintech arms of 13 firms, including Tencent and Meituan.
Jul 2, 2021
China’s internet watchdog started a cybersecurity review of Didi two days after its U.S. IPO and ordered the firm to halt new user registrations.
Jul 24, 2021
China’s cabinet banned companies teaching the school curriculum from making profits, raising capital or going public.
Aug 17, 2021
The “common prosperity” drive, which includes income regulation and redistribution, prompted several tech billionaires to donate.
Oct 8, 2021
Regulators slapped Meituan with a smaller-than-feared penalty, fining the food delivery giant $533 million for violating anti-monopoly rules.
2020
Nov. 1
Regulators unveiled guidelines to root out monopolistic practices in the internet industry.
DEC. 1
2021
JAN. 1
FEB. 1
Regulators published final antitrust guidelines for internet platforms, just three months after first unveiling them.
MAR. 1
APR. 1
$2.8 billion
On Apr. 10 Alibaba was fined a record $2.8 billion after regulators concluded that the company abused its market dominance.
Ant was ordered to transform itself into a financial holdings company that will be supervised more like a bank.
MAY 1
The crackdown quieted down ahead of the Communist Party’s 100th anniversary.
JUNE 1
JULY 1
New rules proposed, requiring companies with more than 1 million users to get cybersecurity clearance when seeking listings in other nations.
aug. 1
Tencent and Alibaba started taking steps to open up their platforms after regulators asked 25 companies to stop blocking links to their rivals.
The media regulator issued rules limiting the amount of time children can play video games and slowed down approvals for new titles.
SEPT. 1
Already nursing losses from the tech crackdown, investors faced a broader selloff associated with developer China Evergrande Group’s debt crisis.
OCT. 1
Jack Ma traveled to Europe for the first time since the crackdown, Hong Kong media reported.
NoV. 1
Nov 3, 2020
Beijing fired its opening salvo at Jack Ma's fintech empire by suspending the world's biggest stock-market debut.
Dec 24, 2020
Regulators kicked off an investigation into alleged monopolistic practices at Alibaba.
Jan 20, 2021
The Alibaba founder resurfaced for the first time since China's crackdown to speak with rural teachers in a live-streamed video.
Mar 12, 2021
Regulators see Tencent as the next target for increased fintech supervision after Ant, Bloomberg reported.
Apr 29, 2021
Regulators imposed Ant-style curbs on the fintech arms of 13 firms, including Tencent and Meituan.
Jul 2, 2021
China’s internet watchdog started a cybersecurity review of Didi two days after its U.S. IPO and ordered the firm to halt new user registrations.
Jul 24, 2021
China’s cabinet banned companies teaching the school curriculum from making profits, raising capital or going public.
Aug 17, 2021
The “common prosperity” drive, which includes income regulation and redistribution, prompted several tech billionaires to donate.
Oct 8, 2021
Regulators slapped Meituan with a smaller-than-feared penalty, fining the food delivery giant $533 million for violating anti-monopoly rules.
2020
Nov. 1
Regulators unveiled guidelines to root out monopolistic practices in the internet industry.
DEC. 1
2021
JAN. 1
FEB. 1
Regulators published final antitrust guidelines for internet platforms, just three months after first unveiling them.
MAR. 1
APR. 1
$2.8 billion
On Apr. 10 Alibaba was fined a record $2.8 billion after regulators concluded that the company abused its market dominance.
Ant was ordered to transform itself into a financial holdings company that will be supervised more like a bank.
MAY 1
The crackdown quieted down ahead of the Communist Party’s 100th anniversary.
JUNE 1
JULY 1
New rules proposed, requiring companies with more than 1 million users to get cybersecurity clearance when seeking listings in other nations.
aug. 1
Tencent and Alibaba started taking steps to open up their platforms after regulators asked 25 companies to stop blocking links to their rivals.
The media regulator issued rules limiting the amount of time children can play video games and slowed down approvals for new titles.
SEPT. 1
Already nursing losses from the tech crackdown, investors faced a broader selloff associated with developer China Evergrande Group’s debt crisis.
OCT. 1
Jack Ma traveled to Europe for the first time since the crackdown, Hong Kong media reported.
NoV. 1
Nov 3, 2020
Beijing fired its opening salvo at Jack Ma's fintech empire by suspending the world's biggest stock-market debut.
2020
Nov. 1
Regulators unveiled guidelines to root out monopolistic practices in the internet industry.
DEC. 1
Dec 24, 2020
Regulators kicked off an investigation into alleged monopolistic practices at Alibaba.
2021
JAN. 1
Jan 20, 2021
The Alibaba founder resurfaced for the first time since China's crackdown to speak with rural teachers in a live-streamed video.
FEB. 1
Regulators published final antitrust guidelines for internet platforms, just three months after first unveiling them.
MAR. 1
Mar 12, 2021
Regulators see Tencent as the next target for increased fintech supervision after Ant, Bloomberg reported.
APR. 1
$2.8 billion
On Apr. 10 Alibaba was fined a record $2.8 billion after regulators concluded that the company abused its market dominance.
Ant was ordered to transform itself into a financial holdings company that will be supervised more like a bank.
MAY 1
Apr 29, 2021
Regulators imposed Ant-style curbs on the fintech arms of 13 firms, including Tencent and Meituan.
The crackdown quieted down ahead of the Communist Party’s 100th anniversary.
JUNE 1
Jul 2, 2021
China’s internet watchdog started a cybersecurity review of Didi two days after its U.S. IPO and ordered the firm to halt new user registrations.
JULY 1
New rules proposed, requiring companies with more than 1 million users to get cybersecurity clearance when seeking listings in other nations.
Jul 24, 2021
China’s cabinet banned companies teaching the school curriculum from making profits, raising capital or going public.
aug. 1
Tencent and Alibaba started taking steps to open up their platforms after regulators asked 25 companies to stop blocking links to their rivals.
Aug 17, 2021
The “common prosperity” drive, which includes income regulation and redistribution, prompted several tech billionaires to donate.
SEPT. 1
The media regulator issued rules limiting the amount of time children can play video games and slowed down approvals for new titles.
Already nursing losses from the tech crackdown, investors faced a broader selloff associated with developer China Evergrande Group’s debt crisis.
OCT. 1
Oct 8, 2021
Regulators slapped Meituan with a smaller-than-feared penalty, fining the food delivery giant $533 million for violating anti-monopoly rules.
Jack Ma traveled to Europe for the first time since the crackdown, Hong Kong media reported.
NoV. 1
Nov 3, 2020
Beijing fired its opening salvo at Jack Ma's fintech empire by suspending the world's biggest stock-market debut.
2020
Nov. 1
Regulators unveiled guidelines to root out monopolistic practices in the internet industry.
DEC. 1
Dec 24, 2020
Regulators kicked off an investigation into alleged monopolistic practices at Alibaba.
2021
JAN. 1
Jan 20, 2021
The Alibaba founder resurfaced for the first time since China's crackdown to speak with rural teachers in a live-streamed video.
FEB. 1
Regulators published final antitrust guidelines for internet platforms, just three months after first unveiling them.
MAR. 1
Mar 12, 2021
Regulators see Tencent as the next target for increased fintech supervision after Ant, Bloomberg reported.
$2.8 billion
On Apr. 10 Alibaba was fined a record $2.8 billion after regulators concluded that the company abused its market dominance.
APR. 1
Ant was ordered to transform itself into a financial holdings company that will be supervised more like a bank.
MAY 1
Apr 29, 2021
Regulators imposed Ant-style curbs on the fintech arms of 13 firms, including Tencent and Meituan.
The crackdown quieted down ahead of the Communist Party’s 100th anniversary.
JUNE 1
Jul 2, 2021
China’s internet watchdog started a cybersecurity review of Didi two days after its U.S. IPO and ordered the firm to halt new user registrations.
JULY 1
New rules proposed, requiring companies with more than 1 million users to get cybersecurity clearance when seeking listings in other nations.
Jul 24, 2021
China’s cabinet banned companies teaching the school curriculum from making profits, raising capital or going public.
Tencent and Alibaba started taking steps to open up their platforms after regulators asked 25 companies to stop blocking links to their rivals.
AUG. 1
Aug 17, 2021
The “common prosperity” drive, which includes income regulation and redistribution, prompted several tech billionaires to donate.
The media regulator issued rules limiting the amount of time children can play video games and slowed down approvals for new titles.
SEPT. 1
Already nursing losses from the tech crackdown, investors faced a broader selloff associated with developer China Evergrande Group’s debt crisis.
OCT. 1
Oct 8, 2021
Regulators slapped Meituan with a smaller-than-feared penalty, fining the food delivery giant $533 million for violating anti-monopoly rules.
Jack Ma traveled to Europe for the first time since the crackdown, Hong Kong media reported.
NOV. 1
After a tough year, there are still many unresolved issues in the crackdown: how will Ant’s overhaul play out, what punishment are regulators readying for Didi, and is there still going to be a steady stream of Chinese tech IPOs in foreign countries? Stakeholders are watching Beijing’s next steps closely for clues on what the endgame is. The scrutiny has done much to reshape the industry and further changes are likely to buffet markets in the months ahead.