China is closing in on itself: public-private joint venture boom
After the CCP congress and, above all, after the climate of economic hostility with the USA, especially from the point of view of technological exchange, the development of Eastern societies seems to have changed direction and turned more towards agreements between public and private companies than towards agreements with foreign companies, all with greater state control over the economy.
On Wednesday, November 2, for example, news of the approval of a new joint venture between China Unicom Ventures and Tencent Ventures, a large state-owned enterprise in China, attracted the attention of insiders. On the afternoon of the same day, the official website of the Chinese State Market Regulatory Administration revealed that China Unicom Innovation and Venture Capital Co., Ltd. and Shenzhen Tencent Industrial Venture Capital Co., Ltd. have started a new case. of the joint venture, which was approved unconditionally, and the trial ended on October 18. Although all parties have said that China Unicom and Tencent have created a new mixed ownership reform company, with no changes in the corporate form, there are concerns that Tencent will be nationalized and fall directly under the control of the government.
In this regard, the Hangzhou scholar Chang Yu said in an interview with RFA that state capital has already entered many private companies and that we are witnessing a sort of creeping nationalization of the private sector, all quietly and through agreements. such as joint ventures, development agreements, etc. After the CCP congress, this strategy is expected to continue in 2023: “ Now we all know that the public-private partnership is a strategic direction of the state. Before the 20th National Congress, public administrations simply opposed the disorderly expansion of private capital and did not allow firms to expand beyond certain limits. After the 20th National Congress, things have been accelerated and there are not so many scruples ”.
In addition to China Unicom and Tencent, Shanghai Mobile and JD.com, China Telecom and Alibaba also signed a " strategic cooperation agreement " on the same day, and the scope of cooperation is related to data center, cloud computing, big data or network safety. therefore we have an increasingly tight control of the state over the economy, especially when it is linked to high tech, artificial intelligence and development in data management. So in the West it must be borne in mind that, when it opens up to an apparent collaboration with a private company, in reality behind it one will increasingly find oneself dealing with public players controlled by the CCP.
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The article China closes in on itself: public-private joint venture boom comes from Economic Scenarios .
This is a machine translation of a post published on Scenari Economici at the URL https://scenarieconomici.it/la-cina-si-richiude-su-se-stessa-boom-joint-venture-pubblico-privato/ on Fri, 04 Nov 2022 12:00:35 +0000.