‘Dog Biting Dog’: China’s Online Fight Could Further Empower Beijing
The New York Times
Internet companies are using the threat of government action as a cudgel against rivals. That could make the Communist Party the ultimate arbiter over the industry.
Hours after the Chinese government imposed a record $2.8 billion fine on Alibaba, a veteran internet entrepreneur urged regulators to do something similar to his company’s biggest competitor. Douyin, TikTok’s Chinese sister service, is suing Tencent, China’s biggest internet company, to allow users to share videos to Tencent’s ubiquitous WeChat messaging service. Alibaba, meanwhile, has applied to set up its own apps within WeChat, essentially daring Tencent to say no.
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Existing American tariffs already restrict steel and aluminum shipments from China, which is now flooding other markets with its exports instead.
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Other big technology companies have been boisterous in their courtship of the new administration. But Nvidia and Microsoft have avoided the Washington spotlight.
After the arrival of a less costly A.I. model from China, U.S. markets and academics are wrestling with the ultimate economic value of the technology.
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The trade deficit has long drawn the president’s ire. Now, he’s preparing to take it on again.