Sunday, December 27, 2020

China orders Ant Group to rectify businesses — Zen Soo

This what the US should have done decades ago when tech monopolies were rising. Did China learn from the US experience not to ignore this? They aren't exactly nipping it in the bud, but they are taking action early enough to prevent a monopoly culture from solidifying. 

  • "Monopoly is the condition of every successful business." 
  • "All happy companies are different: each one earns a monopoly by solving a unique problem. All failed companies are the same: they failed to escape competition."
Who creates monopolies? The state — through granting intellectual property rights the create artificial scarcity, and failing to regulate markets to prevent asymmetries.

Not that China doesn't have state-sponsored monopolies. These are the large state-owned companies. But the Chinese leadership has been forewarned by Russia's disastrous divesture on US advise at the time of the collapse of the USSR. China is look at developing a more measured solution that will safely introduce competition.

See also

Chinese regulators order Ant Group to focus on payments, stop short of breakup

1 comment:

Peter Pan said...

Unlike the US, China believes in competitive markets.