Hey. Brady here.
There’s been a lot of talk about a financial decoupling between the United States and China, with proponents of the idea citing the impact of Beijing’s fintech crackdown, antitrust probes, and new data regulations on the share prices of companies listed in New York as justification. Some even claim the Chinese government initiated the three-pronged strike against big tech to spite Washington and US investors.
That all seems far-fetched.
Sure, there likely is some worry within the ranks of power that tech companies have become too big, too influential, and know too much about the granular details of individuals. When it comes to user data, tech companies in China have operated with few limitations for years and have sculpted the behaviors of people—as spenders, borrowers, lenders, and consumers of content—for their own profit.
That situation is changing. One government organ, the Cyberspace Administration of China, is laying down the law. In doing so, the CAC is shaking US capital markets, as my colleague Simone wrote.
There are similar developments in other major economies, particularly in the United States and the European Union. The motivations of regulators in various corners of the world may not align completely, but do overlap significantly. The concept and practice of data sovereignty is still being shaped. China’s regulators just happen to be a step or two ahead—and they’re picking up speed.
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