Investors on three continents dumped stocks on Monday, fretting that the governments of the world’s two largest economies — China and the United States — would act in ways that could undercut the nascent global economic recovery.
The Chinese government’s reluctance to step in and save a highly indebted property developer just days before a big interest payment is due signaled to investors that Beijing might break with its longstanding policy of bailing out its homegrown stars.
And in the United States, the globe’s No. 1 economy, investors worried that the Federal Reserve would soon begin cutting back its huge purchases of government bonds, which had helped drive stocks to a series of record highs since the coronavirus pandemic hit.
The sell-off started in Asia and spread to Europe — where exporters to China were slammed — before landing in the United States, where stocks appeared to be heading for their worst performance of the year before a rally at the end of the trading day. The S&P 500 closed down 1.7 percent, its worst daily performance since mid-May, after being down as much as 2.9 percent in the afternoon.
to ignore a variety of issues complicating the recovery — including the emergence of the Delta variant and the supply chain snarls that have bedeviled consumers and manufacturers alike.
But beginning this month, as Evergrande began to teeter and the likelihood of the Fed’s scaling back — or tapering — its bond-buying programs grew, the market’s protective bubble began to deflate. Some U.S. investors are also concerned that tax increases are in the offing — including on share buybacks and corporate profits — to help pay for a spending push by the federal government, the signature piece of which is President Biden’s proposed $3.5 trillion budget bill. Separately, Congress also must act to raise the government’s borrowing limit, a politically charged process that has at times thrown markets for a loop.
On Monday, those currents combined, reflecting the interconnectedness of the global markets as investors everywhere sold their holdings.
the rancorous debate about increasing the debt limit was accompanied by a sharp market slump, as representatives in Washington appeared to flirt with the idea of not raising the constraint on borrowing, which would effectively amount to a default on Treasury bonds.
“It’sgoing to be drama for the sake of politics,” said Lisa Shalett, chief investment officer at Morgan Stanley Wealth Management. “People don’t like that.”
At an employee dinner, women were told to rank the attractiveness of the men at the table. During a team-building exercise, a woman was pressured to straddle her male co-worker in front of colleagues. Top executives traded lewd comments about male virility at company events and online.
The e-commerce giant Alibaba, one of China’s most globalized internet companies, has often celebrated the number of women in its senior ranks. In 2018, the company’s billionaire co-founder, Jack Ma, told a conference in Geneva that one secret to Alibaba’s success was that 49 percent of employees were women.
But that message of female empowerment is now being called into question after an Alibaba employee accused her boss of raping her after an alcohol-fueled business dinner. The woman, who has been identified by the police and her lawyers only by her surname, Zhou, said bosses and human resources had shrugged off her complaints. She eventually resorted to screaming about the assault in a company cafeteria last month.
“An Ali male executive raped a female subordinate, and no one in the company has pursued this,” Ms. Zhou yelled, according to a video that was posted on the internet.
fired the man accused of rape, said it would establish an anti-sexual-harassment policy and declared itself “staunchly opposed to the ugly forced drinking culture.” Yet former Alibaba employees say the problems run much deeper than the company has acknowledged.
Interviews with nine former employees suggest that casual sexism is common at Alibaba. They describe a work environment in which women are made to feel embarrassed and belittled during team-building and other activities that the company has incorporated in its culture, a striking departure from the image of inclusion Alibaba has tried to project.
The police investigation into Ms. Zhou’s case is continuing. Alibaba appears to be trying to keep a lid on discussions of the matter. The company recently fired 10 employees for leaking information about the episode, according to two people familiar with the matter. Most former employees who spoke with The New York Times asked to remain anonymous because they feared retaliation.
immediate changes to the way it handles workplace culture and misconduct matters after Ms. Zhou’s case came to light, the statement said. Upon examining its policies and reporting processes, the company found “certain areas that did not meet our standards,” the statement said.
The statement did not address any of the specific allegations made by the former employees who spoke to The Times.
Many Alibaba departments use games and other ice-breaking activities to make co-workers feel at ease with one another. Kiki Qian joined the company in 2017. Her team welcomed her with a game of charades. When she lost, she said, she was punished by being made to “fly the plane,” as her co-workers called it. The stunt involved straddling a male colleague as he sat in an office chair. The colleague then lay back in the chair, causing Ms. Qian to fall on top of him, face first.
“I realized while carrying out the punishment that it could be a little perverted,” Ms. Qian, 28, said in a telephone interview.
On a separate occasion, Ms. Qian said, she saw a woman burst into tears after being pressured to jump into the arms of a male colleague during a team game.
Other former Alibaba employees said ice-breaking rituals included uncomfortable questions about their sexual histories. One former employee said she and other women at a team dinner had been asked to rank their male colleagues by attractiveness. Another said she had felt humiliated during a game in which employees were required to touch each other on the shoulders, back and thighs.
Mr. Ma joked onstage about how Alibaba’s grueling work hours affected employees’ sex lives.
went further with the riff at the next year’s ceremony.
“At work, we emphasize the 996 spirit,” he said, referring to the practice, common at Chinese internet companies, of working 9 a.m. to 9 p.m., six days a week.
“In life, we need 669,” Mr. Ma said. “Six days, six times.” The Mandarin word for “nine” sounds the same as the word for “long-lasting.” The crowd hooted and clapped.
Alibaba shared the remarks, with a winking emoji, on its official account on Weibo, the Chinese social media platform. Wang Shuai, the company’s public relations chief, wrote on Weibo that Mr. Ma’s comments had reminded him of how good it was to be young. His post included vulgar references to his anatomy.
Alibaba also gives employees a handbook of morale-boosting “Alibaba slang.” Several entries are laced with sexual innuendo. One urges employees to be “fierce and able to last a long time.”
Feng Yuan, a prominent feminist in China, said the kind of behavior described at Alibaba could create the conditions under which bullying and harassment were quietly tolerated and promoted.
“In companies where men dominate, hierarchical power structures and toxic masculinity become strengthened over time,” Ms. Feng said. “They become hotbeds for sexual harassment and violence.”
Last month, Ms. Zhou shared her rape accusation on Alibaba’s internal website. According to her account of the events, her boss told a male client who was also at the alcohol-fueled business dinner, “Look how good I am to you; I brought you a beauty,” referring to Ms. Zhou.
Boozy meals have long been widespread in corporate China, where it can be seen as offensive to refuse to drink with a superior. Three days after Ms. Zhou reported the assault to Alibaba, her boss still had not been fired, she wrote in her account. She was told that this was out of consideration for her reputation.
“This ridiculous logic,” she wrote. “Just who are they protecting?”
Elsie Chen contributed reporting. Albee Zhang and Claire Fu contributed research.
Internet infrastructure operators like Didi must now prove their political and legal legitimacy to the government, Ma Changbo, an online media start-up founder, wrote on his WeChat social media account.
“This is the second half of the U.S.-China decoupling,” he wrote. “In the capital market, the model of playing both sides of the fence is coming to an end.”
Didi, Ms. Liu and Mr. Liu didn’t immediately respond to requests for comment.
China’s internet companies have benefited from the best of two worlds since the 1990s. Many received foreign venture funding — Alibaba, the e-commerce giant, was funded by Yahoo and SoftBank, while Tencent, another internet titan, was backed by South Africa’s Naspers. They also copied their business models from Silicon Valley companies.
The Chinese companies gained further advantages when Beijing blocked almost all big American internet companies from its domestic market, giving its home players plenty of room to grow. Many Chinese internet firms later went public in New York, where investors have a bigger appetite for innovative and risky start-ups than in Shanghai or Hong Kong. So far this year, more than 35 Chinese companies have gone public in the United States.
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Now the Didi crackdown is changing the calculations for many in China’s tech industry. One entrepreneur who has set her sights on a listing in New York for her enterprise software start-up said it would be harder to go public in Hong Kong with a high valuation because what her company did — software as a service — was a relatively new idea in China.
A venture capitalist in Beijing added that because of China’s data security requirements, it was now unlikely that start-ups in artificial intelligence and software as a service would consider going public in New York. Few people were willing to speak on the record for fear of retaliation by Beijing.
At the same time, the United States has become more hostile to Chinese tech companies and investors. As Washington has ramped up its scrutiny of deals that involve sensitive technologies, it has become almost impossible for Chinese venture firms to invest in Silicon Valley start-ups, several investors said.
China’s economy is on a tear. Factories are humming, and foreign investment is flowing in. Even so, the wealthy and powerful people atop some of the country’s most prominent companies are heading for the exits.
The latest are Pan Shiyi and Zhang Xin, the husband-and-wife team that runs Soho China, a property developer known for its blobby, futuristic office buildings. In striking a deal this week to sell a controlling stake to the investment giant Blackstone for as much as $3 billion, Mr. Pan and Ms. Zhang are turning over the company as high-profile entrepreneurs come under public and official scrutiny in China like never before.
Soho China did not respond to a request for comment.
China’s most famous tycoon, the Alibaba co-founder Jack Ma, has kept an uncharacteristically low profile since late last year, when the government began a regulatory crackdown on his companies and the wider internet industry. Colin Huang, founder of the Alibaba rival Pinduoduo, resigned as chairman in March, less than a year after he stepped down as chief executive. In May, Zhang Yiming, founder of TikTok’s parent company, ByteDance, said he would hand over the chief executive post to focus on long-term strategy.
Under the Communist Party’s top leader, Xi Jinping, nationalism has been resurgent in China, and the government has sought to exert more direct influence over the private sector. Even before this week’s sale, Mr. Pan and Ms. Zhang of Soho China had been avoiding the spotlight more than they did during an earlier, freer era of China’s economic revival.
going after businesspeople and intellectuals with big online followings. The police that year arrested Wang Gongquan, a friend of Mr. Pan’s and supporter of human rights causes, on charges of disrupting public order.
Mr. Pan and Ms. Zhang began selling off property holdings in China and spending more time in the United States. The family of Ms. Zhang and the Safra family of Brazil, long involved in international banking, teamed up to buy a 40 percent stake in the General Motors building in Manhattan.
They noted that the couple donated generously to Harvard and Yale but not to Chinese universities.
After media reports accused Soho China of “fleeing” Shanghai by selling projects there, Mr. Pan wrote on Weibo: “Buying and selling is normal. Don’t read too much into it.”
The company’s last big public event was the opening of Leeza Soho, a lithe, spiraling skyscraper in Beijing, in late 2019. Zaha Hadid, the famed architect who designed the tower and a friend of Ms. Zhang’s, had died a few years earlier.
Last year, Ren Zhiqiang, a retired property mogul and friend of Mr. Pan’s, was detained for an essay he shared with friends on a private chat group. The essay criticized Mr. Xi’s handling of the coronavirus outbreak and the direction he was taking the country. Mr. Ren was sentenced to 18 years in prison.
Today, Mr. Pan’s and Ms. Zhang’s Weibo accounts are filled with bland, friendly material: holiday greetings, book recommendations, photos of flowers in bloom outside Soho China buildings. Both of their accounts are set to display only the past half year’s posts.
On Wednesday night, minutes after Soho China announced the sale on its official Weibo account, Mr. Pan reposted the announcement without comment, in what online commentators called a “silent farewell.”
ZHAOQING, China — Xpeng Motors, a Chinese electric car start-up, recently opened a large assembly plant in southeastern China and is building a matching factory nearby. It has announced plans for a third.
Another Chinese electric car company, Nio, has opened one large factory in central China and is preparing to build a second a few miles away.
Zhejiang Geely, owner of Volvo, showed off an enormous new electric car factory in eastern China last month rivaling in size some of the world’s largest assembly plants. Evergrande, a troubled Chinese real estate giant, has just built electric car factories in the cities of Shanghai and Guangzhou and hopes to be making almost as many fully electric cars by 2025 as all of North America.
China is erecting factories for electric cars almost as fast as the rest of the world combined. Chinese manufacturers are using the billions they have raised from international investors and sympathetic local leaders to beat established carmakers to the market.
Europe is on track to make 5.7 million fully electric cars by then.
have plans to catch up. In April, President Biden called for the United States to step up its electric vehicle efforts. During a virtual visit to an electric bus factory in South Carolina, he warned, “Right now, we’re running way behind China.”
North American automakers are on track to build only 1.4 million electric cars a year by 2028, according to LMC, compared with 410,000 last year.
eliminate gasoline and diesel engines entirely in the next 15 years.
For the new Chinese cars, name recognition will be a major challenge. The brands are mostly unfamiliar even to Chinese drivers. On roads filled with Buicks, Volkswagens and Mercedes-Benzes, they could struggle to stand out.
Alibaba, the e-commerce company, and two state-backed firms have set up an electric car joint venture under the name IM Motors, which plans to begin delivering cars early next year.
Evergrande named its brand Hengchi, pronounced “Hung-cheh.” A stock market mania for electric cars has propelled the Hong Kong-traded shares of the company’s electric car unit, Evergrande New Energy Vehicle, to almost the same market capitalization as G.M.
Evergrande plans to make and sell a million fully electric cars a year by 2025. So far, it has sold none.
Geely, an industry veteran with recognized brands in China, has named its electric brand Zeekr, which rhymes with “seeker.” It plans to begin delivering cars in October.
The Zeekr is being made in a new electric car factory near Ningbo, on China’s eastern coast. The factory is a cavernous space with miles of white conveyor belts and rows of 15-foot cream-colored robots made by ABB of Sweden. It has an initial capacity of 300,000 cars a year, larger than most car factories in Detroit, and floor space for expansion.
“What is the most important thing is, China has the market,” said Zhao Chunlin, the factory’s general manager.
Mr. He named Xpeng, pronounced “X-pung,” after himself. Xpeng’s niche feature is a cooing, Siri-like voice assistant that guides the car’s internet services, like directions and music, and its computer-assisted highway driving. Xpeng plans to have the capacity to make 300,000 cars a year by 2024; last year it sold fewer than one-tenth that many.
Mr. He made his first fortune developing a mobile phone browser company, UCWeb. He sold it to Alibaba in 2014 and became president of Alibaba’s mobile business services unit. The same year he helped bankroll two former executives from state-owned Guangzhou Auto to start Xpeng.
Three years later, Mr. He took direct control of Xpeng and left Alibaba, which also acquired a small stake in the automaker. Mr. He said that his second child had been born, and that he wanted to be able to tell his son that he led a car company. Mr. He holds 23 percent of Xpeng’s shares, while Alibaba holds 12 percent.
Chinese government officials have helped along the way. A state-owned enterprise in Zhaoqing, a 1,000-year-old jade-carving town near Guangzhou, lent $233 million to Xpeng in 2017 for the construction of its initial factory with annual capacity of about 100,000 cars. The city has been subsidizing the company’s interest payments since then, according to Xpeng’s regulatory filings.
The city of Wuhan helped Xpeng buy land and borrow money at low interest rates for a new plant there. The Guangzhou government also helped Xpeng start building its factory in that city, said Brian Gu, vice chairman and president of Xpeng.
Last year, after weathering the pandemic, Xpeng cashed in on Wall Street, where Tesla’s rise whetted investor appetite for the industry. The Chinese company raised $5 billion in an initial public offering and subsequent share sales. It is spending part of the money on new factories and part of it on research and development, particularly in autonomous driving.
Xpeng’s deep pockets are visible in costly automation at its Zhaoqing factory. Robots lift 44-pound car roofs of dark tinted glass, apply aerospace-strength glue and press them into place. Waist-high robots glide across the gray concrete floor, carrying instrument panels while playing an instrumental version of Celine Dion’s “My Heart Will Go On.” (The robots came programmed that way, company officials explained.)
The factory took only 15 months to build, considerably faster than assembly plants in the West. Yan Hui, the general manager of the factory’s final assembly area, said decisions were made more quickly than at the German auto parts manufacturer where he used to work.
“Any design change took a long time — sign, sign, even sign in German,” he said. “But at Xpeng, we can just make the change.”
Even though many of the electric car brands are new to China, their owners already have ambitions abroad. Xpeng is starting to export cars to Europe, beginning with Norway. Chery, a big state-owned automaker in central China, announced last week that it would start exporting gasoline-powered cars to the United States next year and follow with electric cars.
The United States will be a difficult market. The Trump administration imposed 25 percent taxes in 2018 on cars imported from China, which has slowed exports. Many electric car parts are covered by the same tariffs. That makes it harder, but not impossible, for Chinese companies to start shipping electric cars in kits to the United States for assembly.
For now, Chinese companies see huge potential to build their brands.
Michael Dunne, the chief executive of ZoZo Go, a consulting firm specializing in the electric car industry in Asia, said the industry’s outlook was becoming clear: “China is going to be the global dominator when it comes to making electric cars.”
Some of the wealthiest and most influential Asian-American business leaders are mounting an ambitious plan to challenge anti-Asian discrimination, rewrite school curriculums to reflect the role of Asian-Americans in history and collect data to guide policymakers.
The group has pledged $125 million to a new initiative, the Asian American Foundation. The foundation has raised another $125 million from organizations like Walmart, Bank of America, the Ford Foundation and the National Basketball Association.
It is the single largest philanthropic gift devoted to Asian-Americans, who make up about 6 percent of the U.S. population but receive less than 1 percent of philanthropic funding.
The effort comes amid a surge in violence against Asian-Americans. Over the past year, hate crime against Asian-Americans has jumped 169 percent, according to a study by the Center for the Study of Hate and Extremism at California State University, San Bernardino, which tracks the crimes in 15 major American cities. In New York City, hate crimes have risen even more, by 223 percent.
The donors to the foundation include Joseph Bae, a co-president of the private equity firm KKR; Sheila Lirio Marcelo, the founder of the caregiver marketplace Care.com; Li Lu, the founder and chairman of the hedge fund Himalaya Capital; Joseph Tsai, a co-founder and the executive vice chairman of the Chinese technology giant Alibaba; Jerry Yang, a co-founder of Yahoo; and Peng Zhao, the chief executive of the market maker Citadel Securities. The group’s advisory committee includes Indra Nooyi, a former chairman and chief executive of PepsiCo; the professional basketball player Jeremy Lin; and the journalist Fareed Zakaria.
stereotyped as successful and wealthy. This “persistent and powerful model minority myth” reveals “a lack of understanding of the disparities that exist,” said Sonal Shah, the president of the Asian American Foundation.
In New York City, Asian-Americans win a disproportionate number of spots at the most prestigious and exclusive public schools. But while Asian-Americans are 12 percent of the U.S. work force, they make up only 1.5 percent of Fortune 500 corporate officers. Among all ethnic and racial groups in the United States, Asians have the biggest income gap between the top 10 percent and the bottom 10 percent, according to Pew Research. Asian-Americans hold only 3 percent of congressional seats.
The donors behind the new initiative are taking a page from a recent effort by prominent Black executives, who mounted a campaign against voting bills in Georgia and elsewhere that disproportionately harm Black voters, pushing much of corporate America to join them.
“They feel the urgency of now, because they realize that racism transcends class and success in America,” said Darren Walker, the chief executive of the Ford Foundation.
has shifted in recent years. Asian-Americans voted overwhelmingly for Joseph R. Biden Jr. in the presidential election, according to exit polls. But a closer look reveals differences among groups.
Mr. Biden was favored by about two-thirds of Indian-Americans going into the vote, according to the Asian American Voter Survey. Chinese-Americans favored Mr. Biden at 56 percent, but as many as 23 percent said they were undecided. Vietnamese-Americans preferred Donald J. Trump by 48 percent to 36 percent for Mr. Biden, with the remaining undecided.
Another part of the initiative’s mission will be to reshape the public’s understanding of the unique challenges that Asian-Americans have faced throughout the nation’s history. The new foundation has contributed to the Asian American Education Project, which is working with PBS on the series “Asian Americans” and developing lesson plans for K-12 teachers that highlight the experiences of the group.
“Asian-Americans and Pacific Islanders are part of American history and culture,” Ms. Shah said. “It’s about time our story was synonymous with the story of America.”
China’s internet companies have also become accustomed to turning to the government. Their data and networks help the government surveil the public. They follow the official censorship guidelines diligently and help the state media blare propaganda. They have become an integral part of the Communist Party’s social control machine. Tencent and Baidu declined to comment, and Alibaba did not respond to a request for comment.
With the government waving the antitrust baton, they could become even more servile.
Last week, Tencent announced a $7.7 billion fund dedicated to what it called “sustainable social value innovations.” It would fund projects involving education, carbon neutrality and the revitalization of rural villages, many of which are pet topics of the party. Online, some commenters praised Tencent for its adroit politicking. One Weibo commenter quipped that Tencent was paying its antitrust fine in advance.
Alibaba used to be the most defiant in its dealings with the regulators, which once looked the other way as the e-commerce giant bullied its smaller competitors and vendors. As late as November 2019, an Alibaba executive defended its exclusionary practices in a meeting with the antitrust regulator. “There are always some competitors who speculate maliciously about the exclusive cooperation business model,” she said.
In October, Jack Ma, the Alibaba co-founder, publicly accused Chinese regulators of being too obsessed with containing financial risk. Days later, the authorities called off the initial public offering of Ant Group, Alibaba’s financial affiliate.
Alibaba’s attitude now couldn’t be more different. After the regulator imposed the $2.8 billion antitrust fine, the company said it “accepts the penalty with sincerity and will ensure our compliance with determination.” Mr. Ma has kept a low profile since October.
Still, talk is cheap, and the platforms have done little to show they are opening up. Tencent and Alibaba, for example, could start by allowing each other’s payment apps on their services. That would benefit consumers and show they are serious about following the law. That could also get the government off their backs.
But so far, none of these companies have announced substantial moves to correct anticompetitive practices. Instead, they are clashing and maneuvering through the halls of power.
China’s fast-moving campaign to rein in its internet giants is continuing apace with an antitrust investigation into Meituan, a leading food-delivery app.
The investigation, which the country’s market regulator announced with a terse, one-line statement on Monday, focuses on reports that the company blocked restaurants and other merchants on its platform from selling on rival food-delivery sites.
Earlier this month, the regulator imposed a record $2.8 billion fine on the e-commerce titan Alibaba for exclusivity requirements of this sort. In a statement on Chinese social media, Meituan said that it would cooperate with the authorities and that its operations were continuing as usual.
Meituan is a powerhouse in China. It made more than 27 million food-delivery transactions a day last year and reported around $18 billion in revenue, making it larger than Uber by sales. Meituan’s main rival in takeout delivery in China is Ele.me, a service owned by Alibaba.
Alibaba has been an early major target in China’s efforts to curb what officials describe as unfair competitive practices in the internet industry. But Beijing has made clear that it will be keeping a much closer eye on all of the sector’s biggest and richest companies.
Meituan was one of 34 Chinese internet firms that were summoned to meet with the antitrust authority this month. The following day, the regulator began publishing on its website statements from the companies, Meituan included, in which they vowed to obey laws and regulations.
Sun Dawu, an outspoken rural businessman who has been a thorn in the side of China’s ruling Communist Party, has been formally arrested on a number of charges, months after being taken into detention.
Mr. Sun, who has been held in the northern province of Hebei since November, faces charges of illegal fund-raising and obstructing public service, among other offenses. He was formally arrested on Wednesday, according to an arrest notice provided on Saturday by one of his lawyers.
The arrest of Mr. Sun — a vocal critic of the Communist Party’s top leader, Xi Jinping, and his crackdown on civil society — comes amid broader efforts by Mr. Xi to muzzle business leaders and bring China’s private sector to heel.
Beijing has punished a number of high-profile tycoons recently. Ren Zhiqiang, a retired real-estate mogul who had called Mr. Xi a clown, was given an 18-year prison sentence last year. After Jack Ma, China’s most famous business leader, criticized Chinese regulators in October, his e-commerce empire Alibaba and fintech giant Ant Group became targets, and Mr. Ma has since kept an uncharacteristically low profile.
The fates of the other people detained are not known. The authorities in Gaobeidian, the city in Hebei where Mr. Sun is being held in a detention center, did not respond to a request for comment.
Mr. Sun, a veteran of the People’s Liberation Army, worked at China’s state-owned Agricultural Bank of China before starting his own business, called Dawu Agricultural and Animal Husbandry Group, which now employs thousands of people.
He built a town in Hebei called Dawu City, complete with services like a 1,000-bed hospital, and cultivated the image of a benevolent corporate leader. His sayings, such as “I’d be honored if my hospital loses money,” were posted around his company’s campus.
Mr. Sun also provided venues for conferences held by liberal and reform-minded groups. He maintained friendships with dissidents long after they became politically toxic. When human rights lawyers were arrested, he offered to pay for their defense.
wrote, “will definitely go after him with murky laws.”
Jack Ma, the most famous businessman China has ever produced, is avoiding the spotlight. Friends say he is painting and practicing tai chi. Sometimes, he shares drawings with Masayoshi Son, the billionaire head of the Japanese conglomerate SoftBank.
The wider world glimpsed Mr. Ma for the first time in months last week, during a virtual board meeting of the Russian Geographical Society. As President Vladimir V. Putin and others discussed Arctic affairs and leopard conservation, Mr. Ma could be seen resting his head on one hand, looking deeply bored.
For Mr. Ma — the charismatic entrepreneur who first showed, two decades ago, how China would shake the world in the internet age; whose face adorns shelves of admiring business books; who never met a crowd he couldn’t razzle-dazzle — it is a stark change of pace.
Beijing’s biggest targets yet, as officials start regulating the country’s powerful internet industry like never before.
snatched from a luxury Hong Kong hotel in 2017. Ye Jianming, an oil tycoon who sought connections in Washington, was detained, as was Wu Xiaohui, whose insurance company bought the Waldorf Astoria Hotel in Manhattan. Mr. Wu later went to prison. Lai Xiaomin, the former chairman of a financial firm, was executed this year.
“The general iron rule is that there should be no individual centers of power outside of the party,” said Richard McGregor, a senior fellow at the Lowy Institute and author of “The Party: The Secret World of China’s Communist Rulers.”
Beijing’s clampdown on tech is already rippling through boardrooms beyond Alibaba’s.
Ant Group’s chief executive, Simon Hu, resigned in March. A few days later, Colin Huang stepped down as chairman of Pinduoduo, the mobile bazaar he founded and took public within a few short years. Pinduoduo announced his resignation the same day it said it had attracted 788 million shoppers over the previous 12 months — a bigger number than Alibaba.
proposed tougher rules for internet companies — or, as an official newspaper put it, “innovative methods of regulation and governance.”
China’s antitrust authority summoned 34 top internet companies to talk about new fair-competition rules. Within hours, they were discussing business changes and publicly pledging to stay in line.
“These new regulations are going to require internet platforms to look at how they innovate going forward, and the result is potentially less innovation,” said Gordon Orr, a nonexecutive board member at Meituan, the Chinese food delivery giant.
Even so, Alibaba and other internet titans have a status in China that could protect them from the most heavy-handed treatment. Officials have praised the titans’ economic contributions even as they tighten supervision. Mr. Xi wants China’s economy to be driven more by its own innovations than by those of fickle foreign powers.
That means it might be too soon to declare Jack Ma down for the count.
“His company is much more important to the success and functioning of the Chinese economy than any of the other entrepreneurs’,” Mr. McGregor said. “The government wants to continue to reap the benefits of his company — but on their terms. The government isn’t nationalizing Alibaba. It isn’t confiscating its assets. It’s simply narrowing the field in which it operates.”
Alibaba declined to comment.
Mr. Ma is no neophyte at dealing with the authorities in China.
He worked briefly and unhappily at a government-run advertising agency before founding Alibaba in 1999. At the time, China was still getting used to the idea of powerful private entrepreneurs, and Mr. Ma proved adept at charming government officials.
in the 2000s. “What a world-class company needs most is a soul, a commander, a world-class businessman. Jack Ma, I believe, meets this standard.”
Mr. Ma saw early on what success might bring with it in China, said Porter Erisman, an early Alibaba executive.
“There was only one person in the company who brought to our attention that one day we might face issues of being so big that we would come under pressure for having too much market power,” Mr. Erisman said. “And that was Jack.”
one of Alibaba’s biggest investors, Yahoo. Mr. Ma said the move had been necessary under new Chinese regulations. Alipay later became Ant Group.
“The Alipay transfer emboldened him,” said Duncan Clark, who has known Mr. Ma since 1999 and is chairman of BDA China, a consulting firm. “He kind of got away with it.”
work more closely with the state.
When Mr. Ma stepped down as Alibaba’s chairman in 2019, a commentary in the official Communist Party newspaper declared: “There is no so-called Jack Ma era — only Jack Ma as part of this era.”
China’s leaders need the private sector to help sustain economic growth. But they also do not want entrepreneurs to undermine the party’s dominance across society.
Last October, as Ant was preparing to go public, Mr. Ma spoke at a Shanghai conference and criticized China’s financial regulators. He had long seen Ant as a vehicle for disrupting the country’s big state-run banks. But there could scarcely have been a less opportune moment to press the point. Officials halted Ant’s share listing soon after.
In China, “it’s hard to say the emperor has no clothes these days,” said Kellee S. Tsai, a political scientist at the Hong Kong University of Science and Technology.
Mr. Ma has largely vanished from sight within his companies, too. In January, he popped up in an internal chat group to answer a business question, according to a person who saw the message but was not authorized to speak publicly. Employees later shared Mr. Ma’s message to reassure nervous colleagues.
estimated that Mr. Ma was not, for the first time in three years, one of China’s three richest people. The country’s new No. 1 was Zhong Shanshan, the low-key head of both a bottled-water giant and a pharmaceutical business.
Chinese news reports about his sudden wealth had to explain to readers how to pronounce the obscure Chinese character in his name.