Welcome to Xianyang Anti-Drug Pioneer
(i)
Frankly speaking, this spring is the most torturous spring.
Too many accidents, there are black swans, there are also gray rhinos.
On April 22, another news came that four U.S. stock investors who had earlier launched a class action lawsuit against Alibaba had amended their complaints to list Ma As a new target for prosecution.
Previously, these people launched a class action lawsuit against Ali in the federal district court for the southern district of New York, on the grounds that the so-called disclosure involving ants was insufficient, etc., resulting in the loss of interests of U.S. investors.
According to the analysis of some overseas friends, the previous litigation was against Chinese technology companies, and now Ma Yun has been added to the litigation object, which is not simple behind it.
A completely personal opinion, perhaps, means that some people in the United States have entered a new stage in their crackdown on Chinese companies.
Just the day before, on April 21, 17 companies, including Zhihu, Ideal Automobile, Best Group, and Shell, were included in the "pre-delisting list" by the American Securities and Exchange Commission (SEC), which is the fifth batch of Chinese stocks included in the list since March.
According to the SEC, the 17 companies are required to provide evidence to the SEC by May 12 that they are not eligible for delisting.
At the same time, the SEC transferred five Chinese stocks, including Baidu, iQiyi and Futu Holdings, from the "pre-delisting list" to the "confirmed delisting list". Previously, on March 30, the five Chinese stocks were included in the "pre-delisting list" and should provide materials by April 20 according to the requirements.
The material, of course, was not up to par, so it was included in a darker list.
"Securities Daily" quoted the analysis of relevant experts as saying: "Theoretically, entering the 'pre-delisting list' does not necessarily mean entering the 'confirmed delisting list'. Companies on the 'pre-delisted list' only need to submit evidence, defend, and prove to the SEC that they do not need to be delisted within 15 working days. But for the companies on the list, 15 working days is indeed urgent, and it is difficult to complete the SEC requirements. ”
This also means that by May 12, if 17 Chinese companies such as Zhihu and Shell fail to submit relevant materials, they will also be transferred to the "confirmed delisting list".
Why was there no problem before, but now it is in new trouble?
In fact, it is related to the "foreign company accountability bill" introduced during the Trump era.
The bill contains two main points: if a foreign company fails to pass an audit by the U.S. Public Corporation Accounting Oversight Board (PCAOB) for three consecutive years, it will be banned from listing on any U.S. exchange; listed companies will be required to disclose their relationships with other governments.
According to Reuters' analysis, this is another tool for US politicians to deal with China before Trump leaves office.
Although the bill applies to all foreign companies, discerning people know that it is mainly aimed at Chinese companies, such as Alibaba and Pinduoduo. Statistics show that since the introduction of the bill, Alibaba's market value alone has fallen by more than 600 billion US dollars, and the entire Chinese Internet industry is even more miserable, and the market value has evaporated to 20 trillion yuan.
You grow stronger, you have global influence, and you become a thorn in the side of some people in the United States.
(ii)
The small actions of the United States are in the eyes of the whole world.
If we say that dealing with Chinese companies, some people in the United States have recently set off a financial war; then the black hand of the Americans has not been idle in dealing with Chinese innovation.
The most skilled weapon is the so-called entity list.
In February 1997, the United States first issued a list of entities, which at that time mainly restricted entities related to weapons of mass destruction, and has since been expanded to include sanctions as long as they are entities deemed to endanger the national security and interests of the United States.
According to the introduction, after entities are included in the "Entity List" of export controls, items within the prohibited scope of export, re-export or domestic transfer to these entities must apply to BIS for permission. And listed entities are not subject to "licensing exceptions", i.e. they cannot be exported, re-exported or transferred domestically under some of the licensing exemption provisions of existing regulations.
This means that the enterprises that have been "blocked" can no longer import American high technology.
The essence of the entity list is to impose a technical block on competitors.
This is actually the long-arm jurisdiction of the United States.
Does it make sense?
It doesn't make sense at all.
But America is America, and that's what America does.
2018 is an important node. Previously, the entity list, mainly aimed at Russia and Middle Eastern countries, according to relevant statistics, in the 11 years from 1997 to 2007, a total of 21 Chinese entities were sanctioned, an average of 2 entities per year (of which 8 years were 0).
Between 2008 and 2017, a total of 174 sanctions were imposed in the 10 years, an average of 17 entities per year.
Since 2018, a total of 431 entities have been sanctioned in the past four years, an average of 108 entities per year.
In order to suppress Chinese companies, the United States has done everything to do so. In December 2018, At the request of the US authorities, Canada arrested Huawei Group CFO Meng Wanzhou on the absurd charge of "fraud" and detained him for more than three years.
Later, on May 15, 2019, Trump suddenly passed a national security ban on the grounds of national security. The U.S. puts Huawei on its entity list, and U.S.-made components that account for more than 25 percent of the total value will be blocked without permission from the U.S. Department of Commerce.
Overnight, Huawei could not use Qualcomm chips, Google stopped cooperating with Huawei, Huawei lost access to Android system updates, and Huawei mobile phones could not be sold in some countries... The United States has even forced some countries to cancel their 5G contracts with Huawei on trumped-up charges.
You know, in 2018, Huawei just surpassed Samsung to become the world's second largest mobile phone seller after Apple, according to the trend at that time, Huawei mobile phones are even likely to surpass Apple and climb to the top of the world.
But the stranglehold of the United States has brought Huawei into the darkest period.
The difficulties for Chinese companies now are just new methods. I remember that at the end of last year, the head of the relevant department of the China Securities Regulatory Commission made it clear that we resolutely oppose this practice of politicizing securities supervision.
Why?
"Because from the content of the bill, the additional disclosure requirements imposed by the US bill on foreign issuers, including proving that they are not owned or controlled by foreign governments, disclosing the names of Communist Party officials on the board of directors, and whether the Communist Party Constitution is written into the articles of association, etc., are obviously discriminatory and are not based on professional considerations of securities regulation..."
Foreign Ministry spokesperson Hua Chunying also said that the US approach is another concrete action to suppress the politics of Chinese enterprises, and it is also another concrete manifestation of the US suppression and containment of China's development.
What to do?
"In today's highly globalized capital market, it is the right way for all parties concerned to openly strengthen dialogue and cooperation on topics such as strengthening cross-border regulatory cooperation and protecting the legitimate rights and interests of investors." She said.
Americans are indeed doing things more and more unscrupulously.
But what the stock market fears most is uncertainty. The uncertainty created by the Americans has also become the most important reason for the recent decline in Chinese stocks.
This is not good for Chinese stocks, but is it really a good thing for US investors?
The good news is that China is responding calmly.
At the Boao Forum for Asia on April 21, Fang Xinghai, vice chairman of the China Securities Regulatory Commission, disclosed that the Sino-US audit and regulatory negotiations are progressing smoothly, "Now basically every other week, we will negotiate video once a week, and the details will be put to the ground, and I am very confident that a cooperation agreement will be reached in the near future... I believe that this uncertainty will soon be removed, which will be good news for Chinese stocks. ”
(iii)
This is not a quiet spring, especially given the recurrence of the current epidemic, the conflict between Russia and Ukraine, the soaring oil prices, the food crisis, there are too many things that arouse our thinking.
It's all a personal opinion, a few sighs.
First, the extreme importance of the Internet and innovation.
If it doesn't matter, Western social platforms won't pull out Russian network cables.
If it doesn't matter, the United States won't bother to deal with Chinese companies.
In the past, we used to say that finance is the bloodline of the modern economy, but I always feel that there are at least two of these bloodlines now, one is finance and the other is the Internet.
We absolutely cannot ignore who ignores, who is weak, and in the end, who is sure who suffers losses.
Without the Internet and Internet innovation, there would be no vitality and resilience in today's Chinese economy, and there would be no anti-epidemic achievements today. Of course, we must also see the deficiencies, see the shortcomings, and not to have the slightest slackness or carelessness.
Second, the advantages and opportunities of China's Internet.
In a previous article, I said that China is not Russia.
In terms of total economic volume, we used to say that China's Guangdong Province has created the GDP equivalent to the entire Russia, and with the recent depreciation of the ruble, the total amount of Russian GDP may now be far inferior to That of Guangdong and Jiangsu, and may still fall behind Shandong and Zhejiang.
More importantly, in the field of the Internet, China and Russia are completely different.
Although the United States is an Internet superpower, the world, second only to the United States, is not the European Union, Britain, not Japan, not Russia, but China.
Yes, the United States has Amazon, Google, Facebook, Youtu, and many companies that have extensive influence in the world. But China also has ah, China has Ali, There is Tencent, there is ByteDance, there is Baidu, there is Meituan, there is Didi, there is Pinduoduo...
Alibaba alone invests more than 100 billion yuan in research and development every year. This not only promotes the improvement of its own efficiency, but also consolidates the digital infrastructure of the entire society.
It is these breakthroughs in Internet technology, China's mobile payment, is now the world's lone loser, and plays an important role in the fight against the epidemic. Alibaba's cloud computing In Gartner's report, four technical indicators are already the first in the world.
This is the benefit of open innovation. In the era of planned economy, the military industry can of course; but in the international market competition, it may cause huge waste, and more importantly, it cannot form an ecology.
China's huge market has formed this ecology.
We are fortunate to have come to the forefront of the world in the Internet era, which is the charm of China's market economy, where China's international competitive advantage lies, and also gives China the opportunity to overtake in the global competition.
Third, we must also see the risks.
Risk one, the disorderly expansion of capital, and monopoly issues.
Indeed, we do not have to avoid, China's Internet development has also had twists and turns, exposing many problems, let us love and hate, but after a series of rectification, after solving these problems, it is bound to be light.
The bigger risk is actually Western repression. The purpose of domestic supervision is for the healthy development of the industry, and the suppression of the West is to try to break the commanding heights of our highly competitive industry.
Specific to the issue of China's stocks, frankly speaking, it should not have been a problem in the first place, and it was entirely some politicians who were doing things.
The struggle is sharp and complex. It is precisely because of the innovative strength of Chinese enterprises that the United States will stop at nothing to suppress it. But in this world, there is no obstacle that Chinese cannot pass. The country has paid attention to the issue of the China Stock Exchange, the negotiations are continuing, and it is believed that the problem will be properly dealt with and resolved.
Of course, we must also be sober-minded that even if China and the United States solve this problem, the United States will find new offensive points, make waves on the ground, and create new troubles.
It also reminds us of the potential for Chinese innovation and the envy of Chinese companies in the United States.
To be sure, the more we develop, the more people are jealous; but the more people are jealous, the more we must be sober, calm, to practice internal skills, not to abolish martial arts, to promote the stable and healthy development of the platform economy, to make good use of global resources to develop themselves, to improve international competitiveness.
After all, it is the era of globalization, and we are competing in the global market. If you don't advance, you will retreat, and the consequence of backwardness is to be suppressed and bullied, and even to be pulled out of the network. Do your own thing well and win the support of the people at home; abroad, you are not afraid of suppression and speak with strength.
It is advisable to look at the amount of wind and things for a long time, but it is necessary to think of danger in peace.
This is true for China, and it is also true for Chinese Internet companies.