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China ramps up control of tech sector

China ramps up control of tech sector

China, long distrustful of the prosperous tech sector, is moving assertively to bring it to heel. According to The Wall Street Journal, the Chinese government is considering new measures on how to exert tighter control on leading national tech companies. Supposedly, some corporations will have to disable payment systems from their apps.

Among the companies that are subject to the new restrictions will be 13 Chinese large firms, primarily Tencent with the WeChat messenger, ByteDance (owner of TikTok), and car-sharing firm Didi.

The market watchdog is sure that these IT giants pose a threat to the country's national security. One of the reasons for the total control was the issuance of loans by these organizations, not supported by a banking license. In addition, tech corporations have access to their users' personal data as they obtain information from their own payment systems.

The Chinese authorities stress that all 13 companies have agreed to the proposed restrictions. They are ready to adjust their work to meet the requirements. The heads of the IT giants did not comment on the situation.

The Wall Street Journal believes that these measures are unprecedented in terms of control over Internet business.


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