The Chinese government has reportedly asked Alibaba Group Holding to release its ownership in a media company. This is because officials are concerned about the influence of this technology giant in creating or controlling public opinion.
This discussion has been held since the beginning of this year. After Chinese regulators reviewed the asset list of media companies owned by Alibaba Group, even though the company’s main business is online retail trading.
A Wall Street Journal source said Chinese officials were surprised by Alibaba’s reach. Which is through the media and asked the group to come up with a plan to significantly reduce ownership in the media.
Alibaba has Collected Media Assets
For information, Alibaba Group has amassed media assets that include print, broadcast, digital, social media and advertising.
Alibaba has stakes in the Twitter-like Weibo platform. Several popular Chinese digital and print news outlets, as well as Hong Kong’s famous South China Morning Post (SCMP) English-language newspaper. Some of this holdings are in US registered companies.
This great influence has been said to be frowned upon by the Chinese Communist Party and its powerful propaganda tools. There have been growing concerns in recent years over Alibaba’s media influence. And also how the company may have leveraged its investment in news. And also social media to influence government policies deemed unfavorable for its business.
Until this news was published Alibaba refused to comment. Then, the Chinese Communist Party’s Propaganda Department did not respond to the Wall Street Journal’s questions.
Earlier, Chinese leader Xi Jinping had personally ordered the cancellation of Ant Group’s IPOs on the Hong Kong and Shanghai stock markets. This corporate action is said to be the largest fundraiser in the world through the capital market if it is realized.
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