VICTIMS OF DRASTIC REGULATORY MEASURES IN 2021, some digital sectors have massively removed positions in recent months, particularly in education.
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When colleagues related to financial services and online education at Bytedance, the Tiktok application group, have been dismissed, M me Yang, 30, did not worry. These two business suffered in 2021 from several regulatory campaigns led by Beijing. But when after six years at the marketing of the most valued Chinese start-up in the world, she was dismissed in turn, M me Yang fell naked. “It happened so fast that I would never have imagined being a victim myself”, testifies the young Beijing.
“Apparently, we could not sell our products quite well. The head of our section and deputy were thanked. We were offered a transfer or dismissal, but we were put pressure to leave.” today The young woman decided to attack the company, to try to get better compensation.
Under the pressure of a series of regulatory measures, the Chinese digital giants have massively deleted positions at the end of the year 2021. On 8 January, the boss of New Oriental, one of the leaders of Online education, has announced having fired 60,000 employees in the last six months. In August, the tutoring sector was devastated by a measure imposing on companies to become “non-profit entities”. New Oriental, one of the pioneers, lost 90% of its market value, and its turnover has melted by 80%.
Abuse of dominant position
Earlier in the year 2021, the Fintech had suffered the thunders of the regulator, as well as the owners of platforms of sales and deliveries of meals, Alibaba and Meituan in the lead, punished for abuse of dominant position. In July, the Chinese leader of VTC, Didi, was investigated, and was forced to obey by leaving the New York Stock Exchange, five months after its introduction. It has been aware of recruiting new customers since this summer.
The slowdown in the Chinese economy does not arrange anything: after a rebound in 2020 thanks to a post-Covid stimulus plan and dynamic exports, the Chinese economy has shown signs of fatigue in 2021. The policy of Zero tolerance against COVID allows the country to protect its population, but it is increasingly expensive, as more contagious variants emerge.
The tourism and catering sectors are the first affected, but the general consumption slows down, with an increase of 3.9% in November 2021, against 4.9% in October. Above all, Chinese real estate, which indirectly assures nearly 30% of the activity, is barely, with prices down since September and several promoters in difficulty, such as Evergrande. Here again, it is the measures taken by Beijing to attempt to regulate an over-indebted sector that have weakened companies.
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