Today's Hard|Forum Post
Today's Hard|Forum Post

Saturday April 14, 2018

China Is Nationalizing Its Tech Sector

According to Bloomberg, the Chinese government is seeking increasing control of its tech companies, which are enjoying tremendous success: this would include Communist Party committees being installed to ensure national goals, a request for government stakes, and companies’ investment in state-owned firms. Many say that this is hardly a surprise, based on the country’s authoritarian nature.

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This quasi-nationalization applies to China's startup scene, too. One recent report found that 60 percent of Chinese unicorns have either direct or indirect investment from the BATs. China's venture-capital sector is dominated not by traditional tech dealmakers but by the state: There are more than 1,000 government-owned VC firms in China, controlling more than $750 billion.