<story><title>Alibaba breaks itself up in six</title><url>https://www.economist.com/business/2023/03/30/alibaba-breaks-itself-up-in-six</url></story><parent_chain><item><author>SilverBirch</author><text>I&amp;#x27;m not an expert on this, but from what I gather this all leads back to a power struggle between Jack Ma and Xi Jinping. Ma was ready to go public with AliPay and in the build up to it made a speech that criticised the government regulation as being out of date. This was viewed as a challenge to the governments power. Over the next few months the government moved to tighten regulations on companies like AliPay and disappeared Jack Ma. The government since then has basically completely taken over his entire empire, and sliced it up into pieces. This is basically Xi sending the message that private business in China will always defer to the government. All of this has natural absolutely tanked the value of China&amp;#x27;s tech sector. So people are hoping that now the worst of it is done and they no longer have enormous tech giants, but a series of smaller companies, that the government will return to being more hands off and in turn those smaller companies can return to more natural valuations.</text></item><item><author>duxup</author><text>It’s always hard for me to understand the why when it comes to China’s government.&lt;p&gt;“Investors cheer the move as signalling the end of China’s tech crackdown”&lt;p&gt;If this is government action then why would this be the “end” of government involvement?</text></item></parent_chain><comment><author>SkyMarshal</author><text>Also, one of Ma’s last public appearances was at an American conference, maybe TechCrunch but I’m not sure, where he said in an on stage interview something to the effect of, “I’m not afraid of the CCP”, in relation to recent revelations he was a CCP member.  Then he got disappeared shortly after.  He was really clueless about what kind of org he was dealing with.</text></comment>
<story><title>Alibaba breaks itself up in six</title><url>https://www.economist.com/business/2023/03/30/alibaba-breaks-itself-up-in-six</url></story><parent_chain><item><author>SilverBirch</author><text>I&amp;#x27;m not an expert on this, but from what I gather this all leads back to a power struggle between Jack Ma and Xi Jinping. Ma was ready to go public with AliPay and in the build up to it made a speech that criticised the government regulation as being out of date. This was viewed as a challenge to the governments power. Over the next few months the government moved to tighten regulations on companies like AliPay and disappeared Jack Ma. The government since then has basically completely taken over his entire empire, and sliced it up into pieces. This is basically Xi sending the message that private business in China will always defer to the government. All of this has natural absolutely tanked the value of China&amp;#x27;s tech sector. So people are hoping that now the worst of it is done and they no longer have enormous tech giants, but a series of smaller companies, that the government will return to being more hands off and in turn those smaller companies can return to more natural valuations.</text></item><item><author>duxup</author><text>It’s always hard for me to understand the why when it comes to China’s government.&lt;p&gt;“Investors cheer the move as signalling the end of China’s tech crackdown”&lt;p&gt;If this is government action then why would this be the “end” of government involvement?</text></item></parent_chain><comment><author>voisin</author><text>&amp;gt; So people are hoping that now the worst of it is done&lt;p&gt;What is the basis of this hope?</text></comment>