China Big Tech Crackdown Winners 2021

Financials, Technology, Consumer Staples Author: Skye Lan Jun 29, 2021 11:48 PM (GMT+8)

ContributorsYingwei Fu, Yangni Liu, Ivan Platonov

EditorLuke Sheehan

Pages44

CopyrightEqualOcean Intelligence

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Introduction

This report explores China's evolving regulatory environment and identifies 10 companies winning from the state's antitrust push. Compared with Big Techs, such as Tencent, Alibaba and Meituan, these niche players are more agile and capable of altering their business models based on the changing consumer needs, the rising tide of downstream demand and the appearance of new technologies.

Highlights

China's Internet sector has been expanding at an astonishing speed, with its 'national champions' evolving to compete with the world's giants.
While these Big Tech companies scale rapidly, the public has been discussing the fairness of market competition.
The recent Big Tech crackdown has attracted massive attention as the regulatory scrutiny reflects the will of the 'invisible hand' and even further – the critical intention of Beijing towards the private sector.
The change in the air seems to have created a short-term vacuum for Big Tech's competitors, which can substitute giants' functions in the market.