China is a window... Despite strong earnings, tech stocks are on the struggle bus. While Chinese and US regulation are very different, China's crackdown begs the question of how intervention might change in the US —  where it’s been much more light-handed. Antitrust scrutiny is rising, and President Biden’s FTC pick Lina Khan is a well-known tech critic. While US regulation isn’t likely to look like China’s, more intervention doesn’t seem far-fetched.

Apparently it triggered more investments from tech giants https://twitter.com/hancocktom/status/1397764588792254468

Anti-trust enforcement has set off a wave of investment by China's tech giants. "The point of the antitrust campaign is... to drive these behemoths out of their comfort zone, where they are now basically rent-seeking off their unchallenged positions” https://t.co/vSDVAAbtoN

Tom Hancock

Jozhe

Ant will likely never see the optimism it had leading into its long-lost IPO again.  Speaking of China's plans, sometimes there can be conflicts, in this case - their CBDC.

Relative to the money they print, there has never been a corporate fine that's been material anywhere.  Hence, stock prices typically increase following.

Definitely your 1), the latter i'm less certain of.  Some foreign friends even suggest the opposite of 3 - that these actions on Jack & the popular narrative internationally around Zhang Yiming (getting kicked out of your own co) makes it less attractive to do / start business in China. @Alex

Alex

While I’m not surprised that China moved faster to reign in its tech companies, I think the US regulations will ultimately be more heavy handed. 

My guess is the CCP motivation stack rank looks something like: 1) remind tech companies and the country who is boss 2) counter US/EU critics who argue that protected and unregulated monopolies in a market as large as China have a massive unfair competitive advantage when expanding overseas (there was an extensive report sponsored by the European Commission and published by the Rhodium Group which made this point recently) 3) relieve domestic pressure to support small business growth

IMO, in no way is the CCP actually trying to hobble their tech titans. They are too important to the country’s plans. The US on the other-hand will move slower as always, but politicians are more willing to impose real fines and regulations on US companies
 
The size of the Chinese fines speak volumes - even Baba made off amazingly well considering how much money they have made over the years for their anticompetitive behavior

While I’m not surprised that China moved faster to reign in its tech companies, I think the US regulations will ultimately be more heavy handed.   My guess is the CCP motivation stack rank looks something like: 1) remind tech companies and the country who is boss 2) counter US/EU critics who argue that protected and unregulated monopolies in a market as large as China have a massive unfair competitive advantage when expanding overseas (there was an extensive report sponsored by the European Commission and published by the Rhodium Group which made this point recently) 3) relieve domestic pressure to support small business growth  IMO, in no way is the CCP actually trying to hobble their tech titans. They are too important to the country’s plans. The US on the other-hand will move slower as always, but politicians are more willing to impose real fines and regulations on US companies   The size of the Chinese fines speak volumes - even Baba made off amazingly well considering how much money they have made over the years for their anticompetitive behavior

D J

A group of likeminded people in The Most Important Thing are talking about this.