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Chinese government hopes for permanent return of Alibaba CEO Related articles

The return of the Chinese entrepreneur and founder of retail platform Alibaba is highly unexpected, according to Chinese expert and creator of BNR’s China podcast John Boy Vossen. He may have to do with an attempt at reconciliation by Chinese premier Li Qiang.

The return of the Chinese entrepreneur and founder of retail platform Alibaba is highly unexpected, according to Chinese expert and creator of BNR’s China podcast John Boy Vossen. He may have to do with an attempt at reconciliation by Chinese premier Li Qiang. (CFOTO/Sipa United States)

In 2011, Ma left China due to new regulations and new laws implemented by the government. “It was twofold,” says Vossen. ‘On the one hand, the Chinese government saw that the regulations relating to technology companies were quite outdated. So they really wanted to upgrade it.’

On the other hand, Vossen points out, tech companies have become increasingly powerful. A minor thorn in the Chinese government’s side, he says. “With the new rules and laws, they also tried to limit Jack Ma’s power a bit,” she continues. ‘She saw him coming, wasn’t happy with it and reacted against it. But the government continued to implement the new rules anyway.

Exodus

But in an effort to limit the power of tech companies, the then Chinese government caused something of an exodus. Jack Ma went overseas and saw many other tech companies follow suit. “What we now know from Reuters news agency, among others, is that current Prime Minister Li Qiang has asked several times over the past year whether Jack Ma might not return,” Vossen said. “Even in the hope that other companies will follow suit.”

‘Chinese Prime Minister repeatedly asked if Jack Ma could return’

John Boy Volpi

But while Ma’s influence on and through Alibaba was very large in the past, now that influence is much less due to the new rules. For example, the Chinese government also reportedly obtained a ‘golden share’ in Alibaba. “So the moment the company makes a decision that the government doesn’t agree with, the government can put a stop to it,” Vossen says.

Definitive?

Whether Ma’s appearance in China means the businessman will finally settle down again, Vossen doesn’t dare say. “That’s obviously the question,” he concludes. “We just don’t know. While we can say that the Chinese government is hoping for it – 10,000 millionaires have moved overseas in the last year, (…) this obviously has a huge impact on the economy.’

Author: Remi Cook
Source: BNR

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