‘Not a crackdown’: China regulators signal more neutral enforcement in shift from 2021

Chinese regulators are stepping up public enforcement against the nation’s corporate giants, marking a departure from the low-key approach adopted after a bruising 2021 tech crackdown. In recent months, agencies have summoned company representatives, launched high-profile investigations, and named and shamed offenders. However, while the uptick in activity has rattled investors, some analysts and observers contend that this does not herald a return to China’s heavy-handed campaign that previously savaged stocks and investor sentiment. Rather, the moves are seen to be signalling a shift in policy priorities towards defending market order. Experts suggest that the regulatory environment remains tight, with both private and state firms facing the full force of the law. Thursday alone saw a flurry of activity, with at least four regulatory announcements. “It’s not a crackdown,” said Zhu Tian, an economist and vice-president of the China Europe International Business School. “But, understandably, there are fresh worries when memories of 2021 have never faded. “It is not yet a repeat of how Beijing put enterprises in a straitjacket in 2021.” On Thursday, the Beijing branch of the State Administration for Market Regulation (SAMR) announced that it had summoned representatives from Alibaba’s Taobao and Tmall, JD.com, Pinduoduo, Douyin and RedNote, in the interest of emphasising fair play. Alibaba owns the South China Morning Post. The same day, the SAMR and China’s cyberspace watchdog summoned seven travel platforms, including Ctrip, Qunar and Meituan, over “irregular practices” regarding ticketing services. Separately, China’s postal regulator also opened an investigation into J&T Express over safety issues. In other developments, the cyberspace watchdog and ministries overseeing public security and information technology named 30 apps for privacy shortfalls and ordered them to rectify issues. Regulators also put some carmakers on notice for “irrational competition practices”. What’s happening today is not a fundamental change but the easing of a self-imposed restriction on actions against large firms Gavekal Dragonomics note Earlier this month, China’s securities watchdog and others went after brokers for unauthorised cross-border trading, proposing penalties of 1.85 billion yuan (US$273 million) for Futu Holdings and 410 million yuan for Tiger Brokers. This followed actions earlier this year, when China blocked Meta Platforms’ acquisition of Chinese AI start-up Manus, penalised internet platforms and announced an antitrust probe into Trip.com. “Regulators must, on top of ensuring the legality of these actions, be mindful about disciplinary moves and market perception,” Zhu said. Some analysts contend that the environment was never truly relaxed. “The tighter environment inaugurated in 2021 never went away,” Gavekal Dragonomics analysts Christopher Beddor and Tilly Zhang said in a note this week. “What’s happening today is not a fundamental change but the easing of a self-imposed restriction on actions against large firms.” That restriction saw agencies refrain from publicly targeting individual companies after stocks tumbled and corporate confidence was bruised. But the environment “did get permanently tighter”, and that self-restraint is now fading, according to Beddor and Zhang. They argued that this was because Beijing’s macro policy has shifted this year towards a lower growth target, with a greater focus on structural adjustments. While the government set a more flexible growth range of 4.5 to 5 per cent for 2026, Beijing’s war on monopolistic tactics and involution-like price wars, as well as leadership’s push for a unified national market, signal shifting priorities. Recent actions are also being framed as neutral enforcement. “Not all regulatory enforcement is bad news for private companies,” Beddor and Zhang wrote. “Regulators have also occasionally taken actions against state-owned enterprises, showing a more even-handed stance.” Moving forward, there is hope for more clarity, especially as private sector investment remains in the doldrums. Official data shows that private investment dropped 5.2 per cent, year on year, in the first four months of 2026. “Rules must be clear so businesses know what’s permitted and what’s not, without any inadvertent violations,” Zhu said. “Enterprises should also have full rights to defend themselves when they are targeted.”

‘Not a crackdown’: China regulators signal more neutral enforcement in shift from 2021

.css-1c6uqr6{color:inherit;font-weight:inherit;font-size:inherit;font-family:inherit;line-height:inherit;overflow-wrap:break-word;}Increased scrutiny of tech giants and finance firms seen as end to the era of administrative restraint as officials move to curb monopolies and price wars

Increased scrutiny of tech giants and finance firms seen as end to the era of administrative restraint as officials move to curb monopolies and price wars