January 28, 2021

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“Jack Ma’s empire has become too powerful for the Chinese government”

"Jack Ma's empire has become too powerful for the Chinese government"

Jack Ma’s problems pile up one after the other. First, the IPO of its financial vehicle Ant Group was delayed and a competitive investigation against Alibaba was added. The striking founder of the online shop giant Alibaba contradicts the Chinese government.

“Ma is getting too close to power,” said Chinese correspondent Garrie van Pinxteren. “He has fundamentally different views on how to grow and what the future of China should look like.” These views now clash with those of the Communist Party.

Confrontation with the banks

The problems for Ma started with a speech in Shanghai in the early autumn. That was just before the Ant Group went public. “He said there: it is time for profound reforms of the financial system,” said the China expert Frans-Paul van der Putten from the Clingersael Institute. It’s Ma’s way of paving the way for innovation, he explains.

“He believes that a new system should be introduced where money is provided based on modern technology and big data,” continues Van der Putten. “But he also confronted the banks with this. And this sector is again an important power base for politicians.”

Alibaba has been accused of penalizing brands for also selling their products through competing web stores. Then they are not allowed to participate in important offers so that their products are lower in the search results, they are accused.