Didi’s withdrawal from the U.S. shows that Xi Jinping is the ultimate arbiter of Chinese companies

For years, American politicians have been shooting Chinese companies. On Friday, Xi Jinping responded with a rocket launcher, stating that although Chinese companies listed in the United States angered the Democratic and Republican parties, they angered the Communist Party.

Didi Chuxing announced that It will retreat Following the regulatory crackdown in Beijing, listing on the New York Stock Exchange and listing in Hong Kong has made it clear that the Chinese president—not American politicians, or even the market—will be the ultimate arbiter of the listing location for the champions of Chinese companies.

Chinese officials have long worried that, in the words of a senior party official, China’s stock market will be “doomed to fail” if it fails to attract the best companies. Didi’s announcement clearly shows that the party has shaken off its worries and is finally ready to take action.

In contrast, the US’s regulatory actions on Chinese companies are half-hearted and faltering.This includes Investment ban It is mainly state-owned enterprises, which can raise the required funds in China and Hong Kong anyway, and Chinese enterprises have issued clearer “warnings” about the regulatory risks they face in the country.

The American politicians who promoted such measures saw only trees but no forests.In fact, China’s leading and overwhelming private technology companies often Preferred New York Going to Shanghai or Hong Kong for an IPO is a major endorsement to the US capital market and a vote of no confidence in the Chinese capital market. After all, Didi is just following a path familiar to predecessors such as Alibaba, Jack Ma’s e-commerce group, and Sina Weibo, which is the closest to Twitter in China.

This is not the case for Xi Jinping, who is ready to take action The unprecedented third five-year term As the general secretary of the party, government, and army, you have to endure for a long time.His obsession with national security risks-first in the turbulent and politically unreliable areas of China such as Xinjiang and Hong Kong, and recently Cyberspace ——Accelerated this trend. After suppressing the so-called “separatists,” Xi Jinping turned his attention to politically unreliable companies in China.

Didi’s presence in Hong Kong also illustrates the problem and links Xi Jinping’s suppression of Hong Kong’s dissent with his “rectification” of China’s private sector. Chinese regulators may have reservations about Didi’s listing in Hong Kong instead of Shanghai. The new national security law implemented by Beijing previously marked the end of these two times when Hong Kong had once flourished. Democratic movement And its arbitrary media environment.

Didi can no longer get rid of the kind of party discipline Xi Jinping has imposed on Hong Kong in various parts of China in the past decade. In this new political and economic era, the president has made it clear that what is good for him and the Communist Party should be good enough for Didi.

tom.mitchell@ft.com

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