Beijing in talks to take direct control of tech giants with 1% stake

China’s government regulators are pushing some of the country’s largest technology companies for state involvement, and a greater role in corporate decision-making, the Wall Street Journal.

source TechinAsia

special management actions

The government has begun its “special management actions” project with two media companies, with shares of less than 2% in the mobile news site Yidian Zixun (FENG + 9.2%) and Beijing Tiexue Tech, which opera a patriotic news site. By using the goal of fostering world-class business that dealt with all the likes of Google and IBM in building smart devices, the Chinese leadership highlighted an AI for a vital region of progress within a report produced throughout the People’s Congress Countrywide in March. Soon, the country’s largest know-how organizations – Alibaba, Baidu and Tencent – stated that the designs of the AI ​​labs and their allocations were worth billions of dollars. Chinese regulators want more direct control of Tencent, Twitter-like Weibo, and Youku Tudou, a video transmission platform owned by Alibaba, according to sources in The Wall Street Journal.

1% stake

A change from a one percent stake, the regulators of a government official at the boards of companies and an influence on operations.
The Chinese government has already tested “special management actions” of less than two percent with news platforms Yidian Zixun and Beijing Tiexue Tech.

Because it is important:

The idea of ​​taking a stake in technology companies was first reported last year. Since then, the Chinese government has increased censorship online, repressing banned content, rumors, and even gossip celebrity social networking accounts.

Alibaba, Baidu, and Tencent

In particular, technology giants like Alibaba, Baidu, and Tencent have taken a hit as their influence on society and China’s economy grows. In September, WeChat began to hold the owners of the talkgroups accountable for all the content shared in their groups.
Influential technological leaders, such as Jack Ma and Pony Ma, are struggling to stay on the good side of government. Alibaba’s charismatic funder is creating a $ 15 billion charitable fund, aligned with the president’s goal.