Going to regulate e-commerce, China was at war with the internet giants. Chinese internet giants lost $200 billion.
China goes to regulate the internet
While the e-commerce industry continues to grow, China is going through restrictive regulations on e-commerce platforms. Even this news of restrictions, whose details were not clearly shared, managed to upset the markets in China.
Within the scope of the 22-page new regulation, there was a $ 200 billion decrease in the share values of giant companies such as JD.com, Xiaomi, Alibaba, Tencent and Meituan. While many e-commerce giants aim to break records on Singles Day, this regulation sector made by China has affected us.
Although the details of the regulation are unknown, China claims it has made regulations to protect competition. It is emphasized that the cooperation of giant companies will prevent the removal of small investors from the market.
The fact that two-thirds of the e-commerce market in China is in the hands of Alibaba and JDCom disturbs the Chinese government and it is aimed to increase competition in this area.