Despite being penalized for an offense they committed in the last couple of days, Alibaba could be back on good terms with the government by showing their prowess in the usage of Blockchain services. Although, this doesn’t mean they won’t pay back that which they owe the Chinese government. Jack Ma’s Alibaba Group, a giant in the fast-evolving world of Chinese technology, didn’t even flinch when they were penalized and asked to pay approximately $2.8 billion, a sum that would naturally be a challenge for an organization or even a nation.
Is the penalty justifiable? This and many more questions would arise as the market regulation in China condemned the group with a ridiculously high antitrust amount. The amount is 4% of their locally generated revenue for the fiscal year 2019. One would think they are the only one trying to monopolize goods sold on their shelves, thereby restricting vendors, undoubtedly, from doing the same with others. Still, it looks like they are not alone in that act as another major e-commerce group; the government is presently watching JD.com.
Will there be more penalties?
The government never stopped making its stance known on the monopoly issue, which hasn’t made it easy for Alibaba’s business for a couple of years now. Can Alibaba get back into the government’s good books using Crypto? This is the question been asked by an analyst, da bing, after looking at their journey so far. Against all odds, the company’s stock increased the following week by 6.5%, which indirectly sends a subtle message to the investors that they have to conclude also to seek a way forward.
The government has been complaining of Jack Ma’s immoderate loan given out by the group’s overdraft platform, Huabei, thus reducing the mortgage sum. This insinuates that the penalty is still quite extensive despite the thought that the government may be a bit lenient at the moment. It is not hidden that the two leading players, Alibaba and Tencent, own most of the tech world in China as they buy off any company that tries to compete with them. They will have to cease with their monopoly ways because of the fine they received just last December. This means that Alibaba’s trade-ins are still being watched.
Blockchain With Chinese markings could be in an answer
With Ant Financial’s unresolved pending issue, the Fintech wing will not stop making a case for their IPO. Raising eyebrows over how they make profits by the government and asking them to be a financial holding company doesn’t look that serious now as the group seems to have gotten an alternative. It sure looked like the government is fighting directly with Jack Ma, which makes the mountain to climb higher for him as the outrageous amount penalized wasn’t the huge cause for uproar in the Chinese world but the fact that the Hupan University, the academic arm of the business was asked to stop with new intakes.
One would easily assume that there is a personal vendetta therein. Many questions have been asked on how to come out of this while the group still maintains its core value. The fintech arm of the company was at the forefront with high shares of blockchain license in 2020. Unarguably, they are not new to the technology as they have used it to generate record-breaking $30 billion in just a day sales. The government may put the group back on the good radar if the group can start using completely blockchain-not-crypto and making it a reality since no sector seems to have taken advantage of the recent trend.