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Chinese authorities ask Alibaba to get rid of media assets — only the Communist Party can control public opinion
fifteen.03.2021 [20:55],
Maxim Shevchenko

The Chinese government has asked Alibaba Group, widely known as the owner of the Aliexpress marketplace, to divest its media assets. People familiar with the matter say the request is due to Beijing’s concerns about the tech giant’s growing influence on public opinion in the country.

Discussions on this issue have been ongoing since the beginning of this year. Chinese authorities were shocked at how widespread Alibaba’s interests are in the media, sources said. They asked the company to develop a plan to significantly reduce its media holdings. Founded by billionaire Jack Ma, Alibaba has amassed an impressive portfolio of media assets over the years, which includes print, broadcast, digital media, as well as social media and advertising businesses. Among the company’s most famous assets, it is worth noting a stake in the social network Weibo, as well as in the South China Morning Post, the leading English-language newspaper in Hong Kong. Some of these holdings are owned by companies registered in the United States.

Sources say the Chinese government sees such influence as a serious challenge to the ruling Communist Party and its own propaganda apparatus. The propaganda department of the Chinese Communist Party did not respond to an official request for comment. Alibaba also refrained from comment, stating only that it is a passive financial investor in media assets and does not interfere in the day-to-day activities of companies, nor does it affect editorial decisions.

It is worth noting that the discussion on the sale of Alibaba assets is the latest in a series of skirmishes so far between the official Beijing and the founder of Alibaba, Jack Ma. Last year, Chinese leader Xi Jinping personally thwarted plans for financial technology subsidiary Alibaba Ant Group to go public. He attributed this to concerns about Ant’s complex ownership structure and fears that such a move would put the country’s financial system at risk.

It’s also worth noting that China’s antitrust regulators are about to fine Alibaba more than $ 975 million for anticompetitive practices. In addition, the company will be required to end its policy of prohibiting sellers from selling their goods both on Alibaba and competing platforms.

In recent years, Chinese officials have raised increasing concerns about Alibaba’s influence on the media. Those fears have been heightened after a host of reports of a senior executive’s alleged extramarital affair were removed from Weibo last year. Follow-up investigation confirmed Alibaba was behind the deletion. At that time, the country’s authorities said that only the Chinese Communist Party can control public opinion on any media platforms, and that the private sector should not take on this role.

It is not yet clear if other large Chinese companies will have to sell their media assets. It is worth noting that influential media are owned by such companies from the Middle Kingdom as Tencent and ByteDance. It is likely that after resolving the issue with Alibaba, the Chinese authorities will also engage in their activities.

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