China’s ride-hailing giant DiDi Chuxing will be delisting from the New York Stock Exchange after its June 30th debut. It is a move that is not surprising for many given China’s tech crackdown since the start of the year.
Companies such as Alibaba and others have truly felt the wrath of Chinese authorities. For onlookers, it seems as if it’s a strategic move made by the Chinese government to help decouple its tech companies from America.
Over the last few decades, we have seen a loosening of the “playpen” for big businesses around China. Tech companies were allowed to grow and break a “few” rules here and there in the name of innovation and strengthening China’s global power.
Many companies benefited from such a wave: Alibaba, DiDi, Baidu, Tencent, and many others. They were allowed to grow and amass great wealth at the same time. A win-win situation for China it seems. Over the last couple of years, the screws have been slowly tightening.
We are now seeing the real China that has been hiding under the guise all along.
It was only a matter of time before the Chinese government reels in its tech companies and focus back on home soil. The growing tension between America and China also adds to the move. Especially if we should take a look at the data laws for each company, it was a political move that the executives at DiDi couldn’t stop.
Going forward expect more crackdowns from the Chinese government as they show who really has power. They are doing something that would be a wet dream for most governments which is in controlling big business.
