From ruling the digital world to being a tool to protect the common good, or the interests, of the One Party of China. Also from growing “without measure” to growing in the right direction. The siege of Internet companies made in china it is closed day by day by the management of its own country. Now that Chinese tech companies have taken a run it’s time to put her in her place and to work in the right direction. And China, in its infinite capacity, is doing it very fast. Also to leave room for smaller competition that meets Chinese communist ideals in which everyone has a piece of the pie.
As a result, massive falls in its stock market value and a certain international suspicion –mainly from the United States– of a Chinese technology company that, with an undeniable conquest in the world of users, also has a powerful giant behind it. It’s not entirely clear how all this behind the scenes will end.
It is not the first time that China has made things clear to the national technology companies. Already in 2020 the review of the Chinese technological structure began. All as a result of the so-called “new phase of development” that would come to manage the future of the already leading power in the world. And although this new stage would be extended to all productive areas where the strict control of education has played an essential role, the reality is that its focus has been mainly on technology. And more the one that does not produce in industrial terms.
National security – focused on the control of data and its abuse by technology companies – was positioned as the center of the debate. The Single Party, which had unleashed the tech business sector since the 1980s, was realizing the loss of power that not controlling the gold of the 21st century entailed: user data. After that, two purely capitalist consequences: inequalities far from common prosperity and a discontented middle class in the absence of stability. After all, China is communist and its future project is to continue to be so hand in hand with a more orderly and controlled technology. Also without those profiles of millionaires similar to those of Silicon Valley capable of escaping the iron control of the nation.
First Alibaba, now TikTok: go for Chinese tech companies
The first to suffer the new control measures in their flesh were the all-powerful businesses of Alibaba and its derivatives. Forcing them out of the world fintech and canceling its IPO or keeping a close eye on a politically too westernized Jack Ma. After them, the control of the world of cryptocurrencies, the surveillance of Didi for collecting data illegally and the fines to delivery for taking advantage of the vein of the pandemic without this being reflected in the labor status of their riders. The list, little by little, gets longer and there are already 30 companies that have received “the call”.
Now, China has released a new package of measures which continues to strengthen the role of the Communist Party in the Internet business sector. All accompanied by inspections that, according to the new list of regulations, seek to end unfair competition on the Internet. At least when it comes to the Chinese universe.
In this new batch, China wants to put an end to false data that manipulate user decisions; This includes the famous fake reviews that have become popular from China to the world through Amazon. Nor can algorithms be used to monitor the competition or employ techniques to keep users within a platform. And what is more important, the indiscriminate use of data generated by users to go against them.
All these measures would come into effect during the last quarter of this year. Which is why companies like Baidu are already getting ahead; the search giant has issued dollar debt before being controlled by the Government. The bulk of companies are also filing their image in the future trying to show their best side and how they are able to collaborate for creating a better China.
However, China continues to take steps in its control by what it considers monopolies and has gone for one of the crown jewels. ByteDance, owner of TikTok, already has a party member Chinese on its board of directors. The most downloaded application in the world and the social network par excellence no longer escapes the control of the Party. With the acquisition of 1% of its shares and one of the three seats on the board, its influence increases considerably.
The changes seen from the outside
The case of TikTok in the United States inherited the problem of Huawei with the vetoes of Donald Trump. China was using the network deployments and the social network to keep an eye on the “enemy”. With Biden and the relaxation of the speech, but considering the Party’s entry on the TikTok board, doubts are back on the social network.
Is the increase in China’s control over its technology companies a problem for international security or is it an internal issue of the country that does not go much further?
As published The Washington Post, there is concern in general but not in regards to China’s entry on the TikTok board. That is, the United States will not change its current surveillance policy on the understanding that this will only affect the version of TikTok in China, Douyin. Even so, it continues to be concerned about how the Asian country could use its positioning with the social network in the face of the world. Despite the fact that, in any case, the control of information and material contrary to the Chinese Communist Party, as well as the promotion of interesting issues for the Government would remain within its borders. Something that would have already been studied with the Hong Kong protests.
In fact, China is closing the circle mainly on the country’s Internet companies linked to entertainment and information. Being the least productive in terms of future technology, the Government wants to control the idle dimension –And therefore dangerous– of its citizens. China doesn’t want platform consumers, it seeks competitive tech companies and productive citizens to rule its long-term tech empire.