China had been regulating a lot of the Economic activities of their country for a long period of time but however, they have made some major decisions and taken some major steps towards clampdown in the past few months. This had got the buzz and people have started to talk and discuss the policies of China all over the world.
China’s Clampdown is Not a Set Back for The Country, Says Economist
They have indeed made a few moves that can be considered quite serious economic decisions and have been talked about over the globe.
Chinese regulators have in the last few months ramped up scrutiny on some of the country’s largest technology companies — including e-commerce giant Alibaba and ride-hailing app Didi. Beijing’s aims include reining in monopolistic business practices and regulating the collection and use of data.
China’s moves will improve the country’s economic structure, capital markets, and governance in the longer term, said Chi Lo, senior economist for Greater China at BNP Paribas Asset Management.
“No, I don’t think it’s a setback. I would even argue that this is an improvement because … it will over the medium, long term improve China’s structure,” Lo told.”
That is “exactly what international investors like to see if they want to get exposure or increase exposure to China,” he added. “China cannot really stand still and be a developing market all the time.
And with economic advancement, regulatory and other improvements have to come in — and I do see this as a step moving forward to improve the Chinese system.” It is indeed not a setback for the country and they clearly have planned this beforehand.
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