FACTBOX-From technology to entertainment, the season of regulatory repression in China


(Updates with new rules for the entertainment industry)

September 2 (Reuters) – China launched a multi-pronged crackdown on a wide range of industries, leaving startups and decades-old businesses to operate in a new uncertain environment.

The following sectors are under regulatory pressure:


Authorities on Thursday called on broadcasters to avoid artists with what they call incorrect political positions and effeminate styles, strictly enforce pay caps for actors and guests, and cultivate a “patriotic atmosphere. “for industry.

This marked the expansion of a campaign that targeted what authorities have described as a “chaotic” celebrity fan culture. Last month, China banned platforms from posting popularity lists and regulated the sale of merchandise to fans in August after a series of controversies involving performers.


Regulators have reduced the time gamers under the age of 18 can spend online gaming to one hour of play on Fridays, weekends and holidays, in response to growing concerns over gambling addiction, media said. of State on August 30.


The State Administration of Market Regulation (SAMR) announced on Monday that it would further regulate the sharing economy, an industry that includes companies that facilitate ridesharing, bike sharing, home sharing and even the sharing economy. pooling of batteries for telephones.


China is developing rules prohibiting internet companies whose data poses potential security risks from registering outside the country, including the United States, according to a person familiar with the matter.

The ban should also be imposed on companies involved in ideological issues, the person said, declining to be identified as the matter is private.


China is building its own state-backed cloud system – ‘guo zi yun’ – which translates to ‘state asset cloud’, posing a direct threat to tech giants such than Alibaba, Huawei and Tencent Holdings.

Tianjin City has asked city-controlled companies to migrate their data from private sector operators like Alibaba Group and Tencent Holdings to a state-backed cloud system by next year, according to a document viewed by Reuters.


China is seeking to strengthen surveillance of algorithms that tech companies, including e-commerce companies and social media platforms, use to target users.

China’s Cyberspace Administration said in a statement on Friday that companies should abide by business ethics and principles of fairness, and should not set up model algorithms that trick users into spending large sums of money. ‘money or to spend money in a way that may disturb public order.

In April, the State Administration of Market Regulation imposed a record fine of $ 2.75 billion on Alibaba for engaging in the “pick one out of two” practice, in which a platform e-commerce platform prohibits vendors from selling on competing sites.

The regulator has also fined small businesses for other practices related to consumer rights and labor.

In May, he fined JD.com 300,000 yuan for spreading false information about its food products.

The regulator has also ordered food delivery companies to better protect workers.


Beijing introduced regulations prohibiting for-profit private tutoring companies from raising capital overseas.

The rules also state that tutoring centers must register as non-profit associations, cannot offer curricula for subjects already taught in public day schools, and prohibit classes on weekends and on weekends. holidays.

A competitive higher education system has made tutoring services popular with parents, but the government has sought to lower the cost of raising children in a bid to boost a lagging birth rate.


In November, shortly before Ant Group Co Ltd’s listing in what would have been a record-breaking share sale, banking regulators released draft rules calling for tighter monitoring of online lending, in which Ant was an important player.

The regulations set limits on interprovincial online loans and capped loans to individuals.

The next day, the People’s Bank of China halted Ant Group’s IPO. In April, the regulator asked Ant to separate his payments business from his personal finance business.


In June, the Cyberspace Administration of China (CAC) asked large rideshare company Didi Chuxing to stop accepting new users, days after its IPO on the New York Stock Exchange.

This reduced the company’s share price by about a fifth.

Analysts and investors say the measures involving Didi have more to do with big data and overseas quotes of Chinese companies than competitive practices.

The regulator initially cited breaches of consumer privacy, but then released a separate set of regulatory proposals allowing Chinese data-rich companies to complete a security review before registering overseas.

At the time of the CAC investigation, the market regulator forced Didi and other companies to pay fines of 500,000 yuan for failing to report small business acquisitions.


In May, three financial regulators expanded restrictions on China’s cryptocurrency industry by banning banks and online payment companies from using cryptocurrency for payment or settlement.

They also banned institutions from providing exchange services between cryptocurrencies and fiat currencies, and banned fund managers from investing in cryptocurrencies as assets.

In the weeks that followed, provincial governments took action to curb bitcoin mining.

The restrictions sparked a wave of mining closures, with the state-linked Global Times newspaper estimating that 90% of mining operations would close in the short term.


The Housing Ministry and seven other regulators have called on the property management industry to “improve order.”

As the economy improves after a 2020 slump due to the coronavirus, authorities have stepped up efforts to curb rampant real estate borrowing this year, in hopes of avoiding an asset bubble.

Other regulatory measures include borrowing caps on developers known as the “three red lines” and caps on mortgage lending by banks. (Reporting by Josh Horwitz and Brenda Goh Editing by Carmel Crimmins and Mark Potter)

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