•   
  •   
  •   

Technology U.S. Decides Against Investing Ban on Alibaba, Tencent and Baidu

04:50  14 january  2021
04:50  14 january  2021 Source:   bloomberg.com

Alibaba CEO strikes conciliatory tone on China's plans for tougher tech regulation

  Alibaba CEO strikes conciliatory tone on China's plans for tougher tech regulation Alibaba CEO Daniel Zhang has described plans by Chinese regulators to tighten restrictions on internet companies as "timely and necessary."The remarks from Zhang come as Alibaba finds itself in the crosshairs of Chinese regulators. News of an imminent crackdown sent shares in the company and other Chinese tech giants plunging earlier this month. That came after officials slammed the brakes on the blockbuster IPO of Ant Group, Alibaba's financial affiliate, following public criticism by founder Jack Ma of Chinese regulators.

(Bloomberg) -- U . S . officials deliberated but ultimately decided against banning American investment in Alibaba Group Holding Ltd. and Tencent Holdings Officials also debated blocking search leader Baidu Inc. but dropped the plan, the person added. Alibaba ’ s U . S .-listed shares rose 4.3% while

Alibaba , Baidu , and Tencent were among a dozen companies being examined for inclusion in a Defense Department list of firms deemed to support China’ s The U . S . government is expected to let Americans continue to invest in Chinese technology giants Alibaba Group Holding Ltd. , Tencent

(Bloomberg) -- U.S. officials deliberated but ultimately decided against banning American investment in Alibaba Group Holding Ltd. and Tencent Holdings Ltd., a person familiar with the discussions said, removing a cloud of uncertainty over Asia’s two biggest corporations.

The Treasury Department blocked a Pentagon effort to add the two internet firms on grounds they aided the military, the person said, asking not to be identified discussing private talks. Officials also debated blocking search leader Baidu Inc. but dropped the plan, the person added. Alibaba’s Hong Kong stock climbed as much as 3.9% while Tencent rose almost 5% on news of the reprieve, which was first reported by the Wall Street Journal. Their dollar bond spreads tightened Thursday morning.

China reportedly demanded that big Chinese tech companies like Alibaba and Tencent process stolen US data for the nation's top spies

  China reportedly demanded that big Chinese tech companies like Alibaba and Tencent process stolen US data for the nation's top spies Foreign Policy spoke to 36 US officials, who said China forcing its firms to process stolen data represents the "commercial wing of the party."The outlet spoke to 36 current and former US officials who told the publication that the nation's spy services order Chinese firms that are equipped with tools to handle large amounts of data to process sets of stolen information, according to the report.

Some investors expressed skepticism, however, that Alibaba and Tencent would face long-term restrictions - given that they are worth a combined Trump escalated measures against Chinese firms in November with an executive order that bans U . S . investors from buying shares of Chinese firms.

Alibaba fell 3.9% and Tencent dropped 4.7% in Hong Kong trading on Thursday, tracking losses in their New York-listed securities. Alibaba may face minimal financial and operational disruptions from a potential ban considered by U . S . officials, which could prohibit Americans from investing in the

The decision removes uncertainty hanging over Chinese social media and gaming leader Tencent and Alibaba, the e-commerce titan founded by billionaire Jack Ma that’s now under intense regulatory scrutiny by Beijing regulators. President Donald Trump has signed an amended version of his executive order banning investment in Chinese military-linked companies, the White House said in a statement Wednesday that didn’t mention any company by name.

Imposing a ban on the pair would have marked the most dramatic escalation yet by the outgoing administration, given the sheer size of the two firms and the difficulty unwinding positions. At more than $1 trillion, their combined market value is nearly twice the size of Spain’s stock market, while the firms together account for about a 10th of the weighting for MSCI Inc.’s emerging markets benchmark.

China launches antitrust investigation into Alibaba, its most successful Internet company

  China launches antitrust investigation into Alibaba, its most successful Internet company The moves could splinter Alibaba’s sprawling e-commerce business or its dominant financial technology spinoff Ant Group. But like in the folk tale, Alibaba first struck gold — and then met trouble.

Some investors expressed skepticism, however, that Alibaba and Tencent would face long-term restrictions - given that they are worth a combined Trump escalated measures against Chinese firms in November with an executive order that bans U . S . investors from buying shares of Chinese firms.

The Trump administration has scrapped plans to blacklist Chinese tech giants Alibaba , Tencent and Baidu Senior officials in the administration had been considering plans to add the firms to a list of alleged Chinese military companies, which would have subjected them to a new U . S . investment ban .

Read more: Alibaba’s Jumbo Bond Deal Goes Quiet With Ma Out of Sight

Alibaba and Tencent clamber back up after U.S. spares them from investment ban © Bloomberg Alibaba and Tencent clamber back up after U.S. spares them from investment ban

Citing national security, Trump previously signed an executive order in November requiring investors to pull out of Chinese companies linked to that nation’s military. The Defense Department will add more companies to the roster, the person said without elaborating.

That would further fray the relationship between the world’s two largest economies, which have clashed over everything from Covid-19 to Hong Kong. Authorities in Washington have ramped up efforts to deprive Chinese companies of U.S. capital in the final months of the Trump administration, adding to economic tensions as President-elect Joe Biden prepares to take over this month.

Hasty measures have at times sown confusion in markets and prompted price swings, such as when the New York Stock Exchange reversed course twice on a decision to delist three Chinese telecommunications companies. The NYSE is now proceeding with its original delisting plan after U.S. Treasury Secretary Steven Mnuchin disagreed with its decision to give the firms a reprieve.

Trump’s order banned trading in affected securities starting Jan. 11. If Biden leaves Trump’s executive order in place, U.S. investment firms and pension funds would be required to sell their holdings in companies linked to the Chinese military by Nov. 11. And if the U.S. determines additional companies have military ties in the future, American investors will be given 60 days from that determination to divest.

(Updates with Hong Kong action and chart from the second paragraph)

For more articles like this, please visit us at bloomberg.com

©2021 Bloomberg L.P.

Chinese censorship invades the U.S. via WeChat .
Users in North America say the app has blocked them from sharing content displeasing to Chinese authorities. Some support Trump’s ban effort, which will be the subject of a court hearing Jan. 14. The mobile app, born in China and used by Mandarin speakers around the globe, has long blocked Zhou’s friends in China from seeing the political posts he shares from the WeChat account he created in the United States, Zhou says. Then about a year ago, the problem got worse, he says — friends with both U.S. and Chinese accounts said they couldn’t see his timeline posts, whether the material was political or mundane.

usr: 0
This is interesting!