- China’s tech crackdown is not over yet, Shehzad Kazi, international managing director of China Beige Book, told Yahoo Finance.
- China began cracking down on regulations for its tech sector at the end of 2020 and has signaled a reduction in regulations.
- However, investors were caught off guard by a new set of draft rules for the online gaming sector announced last week.
China’s tech crackdown is far from over, experts said Tuesday after reviewing the Chinese government’s recent moves in the video game sector.
“In recent years, various China watchers have appeared on TV programs and have repeatedly said that the Chinese government is becoming more realistic and that the high-tech crackdown is over.” China Beige International Managing Director Shehzad Qazi said.read the book and told Yahoo Finance.
But “over the past two years, they have been proven wrong time and time again,” Kazi added.
China began cracking down on regulations in the high-tech sector in 2018. Late 2020.
This year, Chinese authorities signaled an end to the crackdown, but it suddenly began. new proposed rules Last Friday’s attack targeting the online gaming sector surprised investors who had feared another crackdown.
Concerns sent the market into a tailspin, with related stocks losing more than $80 billion in one day. After announcing the new draft rules, authorities immediately began damage control the next day.
While the worst of the repressions include Chinese government surveillance, tech giant alibaba — It may be over, Qazi tells Yahoo Finance, saying the paradigm has already shifted. Therefore, investors should probably not expect a return to the pre-2020 business-as-usual mode, he added.
“Investors need to understand that the days of loose or no rules surrounding the tech industry are completely over,” Kazi told the media network.
What is also certain is that China’s business environment has become more uncertain and unpredictable, Qazi said.
In fact, investors should not rely on predictability in this sector; it is “highly impossible”.
“Because unless you’re inside the head of the highest leadership of the Communist Party, frankly you don’t know what’s going to happen,” he said.
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