China's crackdown, is the $1.5 trillion a Loss or Gain?
Largely many are skeptical of the future of technology investment in China, with fears for Video games stock since the governing body of the nation has set out to prune the nation to make it fit for the planned structured growth it has. This to me has perspective.
Undisputedly, tech firms need regulation. However, regulation done well is for the growth 0f any nation and when done badly brings ruins. Much earlier I explained here that;
Anti- trust, a matter of regulation, should not be about breaking down big companies as that would spell doom to the nation by breeding disjointed firms, rather making the playing ground leveled so there small firms can thrive, since this big firm were once small. But, to make the matter a thing of favoritisms would only breed incompetent poorly driven firms.
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The issues laid by regulation to this tech firm is to ensure all thrive.
Another, is that giving so much power to one firm can disrupt systems when things go south. First bank, a West Africa Systemic bank was on spot light earlier this year and all fear was on the ripple effect on the economy, as a ruins of one considered to be too big to fail could be catastrophic. However, China is not trying to create a too Big to succeed scenario, rather it is a call on all to foresee a bigger picture of allowing oneself to be guided. Because, an unintentional slip may lose all the trust in the trust bank.
Trust is a fragile currency.
So, whilst many see this as a vindictive response to a leaking mouth- envy, which it could, it should be a good one which offers the Nation the opportunity to put systems that ensure the nation is safe from unpleasant stories.
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