The National Bank of China (NBK, an analogue of the Central Bank) has promised to continue repression against tech giants. The chairman of the regulator Yi Gang promised that the country will continue to introduce new measures against companies from the financial technology sector. According to Bloomberg, China intends to curb the monopolistic behavior of tech giants and protect user privacy and data security.
Why are they called hypocrites and liars?
“We will continue to work with antitrust authorities to curb monopolies and actively combat algorithm discrimination and other new forms of anti-competitive behavior,” Yi Gang said. According to him, the People’s Bank of China will regulate the payments sector and request licenses from companies that provide financial services and personal information.
Yi Ghan said the NBK is demanding that fintech enterprises set up holding companies and subordinate financial subsidiaries to them. In the future, the Central Bank will ask them to provide consolidated reporting and strengthen measures to prevent shocks. And Gang named three principles for regulating companies: having a business license, no direct link between non-banking organizations and banking services, and protecting information from different parts of the business to eliminate cross-industry risks.
Over the past year, China has suppressed its largest technology enterprises. Last November, the government passed new financial technology regulations that forced Jack Ma’s Ant Group to cancel its initial public offering days before the company was due to go public. Beijing has also launched an antitrust investigation against e-commerce giant Alibaba and food delivery leader Meituan.
