China Is Nationalizing Its Tech Sector

Posted by Megalith 3:20 PM (CDT)

Saturday April 14, 2018

According to Bloomberg, the Chinese government is seeking increasing control of its tech companies, which are enjoying tremendous success: this would include Communist Party committees being installed to ensure national goals, a request for government stakes, and companies’ investment in state-owned firms. Many say that this is hardly a surprise, based on the country’s authoritarian nature.

This quasi-nationalization applies to China's startup scene, too. One recent report found that 60 percent of Chinese unicorns have either direct or indirect investment from the BATs. China's venture-capital sector is dominated not by traditional tech dealmakers but by the state: There are more than 1,000 government-owned VC firms in China, controlling more than $750 billion.