The logic driving China’s big tech clampdown
It&#x27;s clear Xi Jinping considers the platform companies to be middlemen that are not actually adding value, and not &quot;real&quot; tech companies unlike those that actually make physical goods like chips or devices. He does not want the platforms to be able to extract monopoly rents from the real tech companies as they have in the US, and he categorically does not want China&#x27;s industrial base to be hollowed out. Same goes for the financial sector.<p>He is, of course, absolutely correct. Lax antitrust enforcement in the US (nonexistent, really) is leading to concentration and stagnation.<p>As for EdTech, it&#x27;s an arms race of tutoring to get into a limited places in good universities, with diminishing results leading to a stalemate since everyone gets tutored, and just a parasitic drain on the economy, hence efforts to clip its wings. Nonprofits like Khan Academy that are genuinely interested in improving education would continue to operate. Much the same could be said of political contributions in the US.<p>I would expect the residential property business bubble to be next, since it&#x27;s another huge misallocation of resources (although it&#x27;s already started with Wanda and Vanke).<p><a href="https:&#x2F;&#x2F;www.aljazeera.com&#x2F;economy&#x2F;2021&#x2F;7&#x2F;28&#x2F;in-its-latest-crackdown-china-intensifies-focus-on-real-estate" rel="nofollow">https:&#x2F;&#x2F;www.aljazeera.com&#x2F;economy&#x2F;2021&#x2F;7&#x2F;28&#x2F;in-its-latest-cr...</a>