Today, leaders of global TMT companies face complex business and geopolitical challenges, as well as an evolving regulatory environment that is impacting everything from corporate strategy, technology innovation, to customer and supply chain management. Looking ahead in 2021, we identify five themes impacting the Chinese TMT industry: the rise of U.S. China techno-nationalism, increased regulatory pressure on Big Tech around anti-monopoly and data privacy issues, “ The New Normal,” focus on digital transformation and technology infrastructure buildout, and ESG as an urgent business imperative.
Theme Two - Tightening scrutiny of big tech around anti-monopoly & data practices
After a relatively lax two decades which saw the explosive growth of the Chinese technology industry, the Chinese regulators are tightening scrutiny. A record US$2.8 billion (RMB18.2 billion yuan) fine imposed on Alibaba, which represents four percent of Alibaba’s 2019 domestic sales, Chinese regulators also ordered 34 local tech firms including Pinduoduo, JD.com, Kuaishou, Bilibili and Didi to conduct a ‘comprehensive self-inspection’ within a month.