Behind China’s crackdown on tech giants

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Hello readers,

Forget about the fear of missing out; China’s tech companies are facing the fear of the unknown.

With the government’s strong antitrust moves, tech companies in the country are getting investigated, fined, and worse: written off from their investors’ cheques.

Surrounding this topic are two camps: One that believes it’s a step in the right direction, and another that criticizes it. Which side are you on?

Today we look at:

• What China’s clampdown means for Southeast Asian startups
• A Singapore-based SaaS startup that recently raised money
• Other newsy highlights such as AirAsia’s plan to enter ride-hailing and ByteDance’s soaring valuation

PREMIUM SUMMARY

China’s war against tech platforms

China is clamping down hard on the tech giants in the country. In February, regulators released new antitrust rules that tightened government control over internet platforms, and among their casualties are Tencent and Alibaba.

• A long time coming: In March 2018, China established the State Administration for Market Regulation (SAMR) to supervise various areas including monopolies and market competition. Last year, SAMR made the tech industry its target.
• Remember Ant Group?: In November, SAMR halted its planned blockbuster dual listing. On top of that, it has also fined companies including Alibaba, Tencent, and ByteDance, and is currently investigating the merger of Tencent-backed online game-streaming platforms Huya and Douyu.
• Time for SEA to shine?: In the past, Southeast Asia’s investment activities would benefit whenever China was facing market, economic, or political uncertainties. And according to our chart, the number of deals done by Chinese investors in the region has indeed grown last year.

Read more: How China has been clamping down on big tech empires

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