GOOD MORNING FROM LONDON
Wang Xing is the Founder + CEO of Meituan, the Beijing-based Food Delivery Service. He has announced plans to follow President Xi Jinping’s policies on Wealth Redistribution + has informed Investors that “Common Prosperity” would be the focus of future development.
Wang said “ We believe that these regulatory changes are good for the sustainable development + orderly growth of the Internet platform economy”
In April 2021 Meituan was given a record $2.8bn fine for abusing its market dominance. On 30 August 2021, Meituan stated that the Government’s Anti-Trust Investigation was “ongoing” + warned of future changes to its business practices. Also, on 30 August 2021, Beijing’s State Administration for Market Regulation announced that it was investigating Meituan’s 2018 acquisition of Mobike, a leading China bicycle-sharing company.
Also bear in mind that on 27 August 2021, Beijing’s top Court announced that the “996” Overtime Policy – employees work 9am to 9pm, 6 days a week was illegal. This will trigger stricter oversight on the Tech Companies Algorithms.
What does all this mean? There is a role for Capitalists + Capitalism in China today but not the rampant, self-serving, rule-breaking, market dominating Capitalism of the West. In China it is different. Capitalism is needed because of its enterprise, initiative + drive. It can join with the State to promote growth, development + prosperity – but never on its own terms. Capitalism exists only with consent + approval of the Communist Party.
The West sees Capitalism in China + rubs its hands with glee. Wrongly, the West believes China is throwing out its socialist ideals and that, in time, One Man One Vote will push the Party to the sidelines. Wrong. What is happening in China is unique. The Party will continue to control the Capitalists in pursuit of the socialist goal of Common Prosperity For All.