What Chinas economic governance tells global investors

StaffmembersoftheprovincialmarketsupervisionbureaucheckfoodproductsatasupermarketinHejian,northChinasHebeiProvince,,2021.(Xinhua/ZhuXudong)CONNECTINGDOTSEntering2021,thestartofChinasnewfive-yearplanperiod,,thecountrystopmarketregulatorvowedtostrengthenanti-trustlawenforcement,imposingrecordfinesonthecountrystechbehemothAlibaba,whencentralauthoritiespublishedguidelinesthatrestrictedfinancingforthefor-profitoff-campustrainingcompanies,smarketregulatorshavealsosteppedupcrackdownsonfoodsafetyviolations,carryingouton-the-spotchecksonanumberofchainstoresofpopularfoodbrandsandurgingrectificationsfromtheinvolvedfirms.”TheregulatorymovesshouldbeframedagainstthebroadercontextofChinaseconomictransition,”saidRobinXing,,theanti-monopolyregulationsaddressedissuessuchastheover-concentrationofmarketpowerinafewtechgiants,whichcouldsqueezetheprofitmarginsofsmallandmedium-sizedcompanies,hesaid.”Therecentpolicyindicatedmoreemphasisonsocialequity,whichwillfacilitateahealthiereconomicstructure,morestablegrowthandhappierlivesforthepeople,”saidWangPeng,,headofChinainternetandnewmediaresearchwithNomura,saidtheregulatoryactionsonChinasinternetsectorwerenotaimedatcurbingitsgrowth,butasignaltoletthebigplatformschanneltheirresourcesandenergiesawayfromexcessivecompetitionintoresearchonadvancedtechnologies.”Webelievetheinternetindustry,knownforitsresilience,shouldbeabletoadapttotheenvironmentandsustainhealthygrowth,”Shisaid.。