Why did Uncle Xi go after Alibaba's Jack Ma?

 



The debate over whether China's socio-economic system is capitalist or socialist is meaningless. It is purely state capitalism. However, it has many unconventional features. 

Xi Jinping recently added a new feather to the crown of that feature, which has shocked the patriarchs of international capitalism. 

But due to lack of honesty, they continue to condemn Uncle Xi without congratulating him. Besides, it is also hiding the significant aspect of the incident.


Jack Ma, who has become the owner of billions of dollars in the last decade, is one of the biggest economic wonders of Asia. 




He is now the 22nd richest man in the world. Shortly after Alibaba, Jack Ma was coming down with another company, Ant, to win the stock market. It is a mobile payment service. It is the owner of Alipay.

Already known at home and abroad, Ant's IPO was worth $37 billion, a world record. The Hong Kong and Shanghai stock markets were in turmoil a few weeks ago. But the ruling Communist Party of China (CPC) has ruled out it. 

That IPO has been postponed.
In this case, China is reluctant to allow large-scale monopolies to be created within capitalism. Alibaba and another company have already taken over almost all of China's e-commerce.


If this happens, the development of other small companies will be difficult. The CPC wants to change this situation. Jack Ma's occasion here, the goal, is to stop monopoly capitalism.

In a capitalist society, the capitalists are in the driver's seat in the state, this myth has also been attacked by the CPC. In a state announcement, Jack Ma is almost gone underground at the moment. Fans are looking for him through social media.

In all the countries of America and Europe, there is intense public anger against the monopoly of big companies. But in no country have the people's representatives dared to touch such big companies with courage or do not want it. 

The fact that Sanders was stopped from running in the last election in the United States is also due to his anti-monopoly stance.

Naturally, corporates around the world are scared of Uncle Xi's 'action'. This is bound to be an example to the people of Europe and America. 

Perhaps this is why the media in North America and Europe are trying to hide the economic significance of CPC's decision and portray it as a conflict between Xi Jinping and Jack Ma, which is hiding the main message of this historic event. 

They are eager to portray it as the CPC's authoritarian behaviour and Xi Jinping's anti-Jack Ma aggression. Such an analysis is ridiculous.

The Chinese regime and its ruling party must be authoritarian. The country has a crisis of human rights and democracy. But it is a kind of dishonesty on the part of analysts and journalists to serve the world by mixing the latest decision of Xi Jinping with it. 


At the same time, it hides the important point that capitalism and its so-called 'entrepreneurs' can be controlled in case of public interest if the people's representatives or those in power want it. 

Everyone agrees that such control is needed. But no one is willing to applaud Xi Jinping. The latest developments in the CPC are certainly a positive step for the international economy.


Xi Jinping made it clear that politics can regulate corporates if it wants to. It can hurt their monopoly. Even it can decentralize the accumulation of wealth. It can take a step against those rich people, no matter how big the person or organization is.

This does not mean that the capitalist system is the best as an economic system and that is the basis of human civilization. But there can be no reason to be indifferent to what is being audited in this system.

The Jack Ma incident has caused a stir around the world, but such speculation has been going on inside China for a long time.

Jack Ma was once the ‘Poster Boy’ of China. But Uncle Xi does not want to hand over the country's wealth to a few 'boys' and 'girls'. It will be closely monitored by the party. Alibaba's new CEO, however, welcomed the Chinese government's new position.

Last year, the Communist Party of China set two economic goals for 2021, one of which was to break the monopoly. The second is to increase the demand for products within the country. From this year, another phase of the new five-year plan is starting in China.

 The country is now looking to boost its own buyers' ability to recover from the COVID disaster and America's dislike. Besides, they are going to break the centralized trend in the capital and its investment. 

They will work this year to stop all kinds of unequal competition. If such an irregularity is found, the regulatory body can impose a fine of up to 10 per cent of the annual sales of a company.

Jack Ma is first on the list of injured in these events. As a result, the share prices of Alibaba, JD.com and other big Chinese companies have started falling.

The CPC put Jack Ma in front of it and sent a message everywhere that they would not allow state capitalism to be a Jack Ma model. As a message, it is intriguing and attention-grabbing. It's a turning point in China's economic strategy. 

Big companies were manipulating the situation through big data. The more people use the Internet, the easier it is to manipulate big data. Sometimes they are forcing distributors to sell only their company's products.

 On the other hand "Ant" of Jack Ma also involved in the business of excess debt beyond its means. Experience in other countries of the world has shown that such companies have accumulated huge wealth in their hands and entered other sectors including media and insurance.

Their emergence in all sectors makes it difficult for new and small businesses in those sectors. In some countries, even the monopoly of one or two companies in a particular sector puts the government hostage. 

These big companies not only easily influence the media, but also open up the print and electronic media themselves. Jack Ma was also going ahead with these plans.

But China wants to make the field of its economy easier and more convenient for newcomers. As innovation grows in society, so does the risk to the economy nationally. 

Although there is a crisis in one or two big companies, there is no big shock in the national economy. In this way, China is going to make the scope of its capitalism bigger and more sustainable.

Jack Ma was once the ‘Poster Boy’ of China. But Uncle Xi does not want to hand over the country's wealth to a few 'boys' and 'girls'. 

It will be closely monitored by the party. Alibaba's new CEO, however, welcomed the Chinese government's new position. Needless to say, politics can be in the driver's seat like this if you want.

The Washington Post provides an excellent example. Jack Ma, the owner of 60 billion USD equivalents asset, was able to be held accountable in the blink of an eye of Xi Jinping who receive 1800 USD as salary, only because of his strong political position and party.

Not only is the monopoly of the private sector closed, but China is increasing the capacity of similar state-owned enterprises in almost all sectors. 

They think that the key to the economy will not be in the hands of a few capitalists. Which will also help to maintain the political authority of the 'party'.

The CPC is an example of the fact that there is scope for continuous reform even within capitalism. There is an opportunity to follow another country. 

If one wants to increase the competitiveness of all in the economy, the People's Republic of China is currently leading the way in building capitalism.






Post a Comment

0 Comments