Alibaba Restructuring: Business or Political Activity?

Among investors, a certain sensation was the appearance of Jack Ma Yu, which signed the decision to divide Alibaba into 6 smaller entities. With his 2-year absence, just after he criticized the government’s actions, the question arises: Is Alibaba restructuring: a business or political activity?

The prices of the Chinese technological giant Alibaba (BABA.US) went up firmly after the company’s division plans were announced into 6 independent business groups. Each group must have its own management and the opportunity to enter the stock exchange independently. This is the largest restructuring of Alibaby in history. Interestingly, this restructuring coincided with the appearance of the company’s founder in China, Jack Ma Yu, who ceased to appear in public two years ago. This sudden disappearance occurred just after he criticized Chinese financial regulations.

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Restructuring Alibaba: Business or political activities?

Chinese policy specialists have no doubt: everything happening around the Alibaba Group recently is primarily political background, driven by conflict within the communist party. Jack Ma Yun, the head of Alibaba, who spent de facto two years in home detention, is only a pawn in this game. His sudden appearance and announcement of the planned division of the gigantic company greatly influenced political activities.

Suggestions have already appeared that the company would be demolished into parts. It is simply too large and too strong, which is a threat sees the communist party in China. Jack has Yun, who probably returned to China now just to pat his signature with his signature as in the personal popularity of her boss.

It should be emphasized that in this whole matter, the political and business facilities standing behind Jack Ma Yun. This environment concerns the son of the former late General Secretary of the Chinese Communist Party, Jiang Zemin. These Koterie hoped to strengthen their political influence through the power of Jack Ma Yun and his Alibaby. They wanted to create a daughter company dealing in online payments and new types of online banking. In this way, they wanted to overshadow the entire banking system in China and, thanks to these very large authorities, also political. They failed and lost a great business and political game with XI Jinping, so now there are consequences.

Dying Chinese Billionaires

We have been observing the phenomenon of “lost” billionaires in China at least since 2015. Many well-known businessmen simply disappear from public space and businessmen managing prestigious Chinese enterprises. Some find themselves, but some do not. It is unknown where they are now – a house arrest, a common prison, or maybe worse? In any case, it is a well-functioning apparatus of political repression against the wayward influential people. Expropriation is another method. What is this all about?

Chinese Apparatus of Power Uses House Arrests to “Convince” Businessmen

It is worth remembering that in China, due to the communist system, all means of production belong to the state. Private individuals may only have the right to use these means of production, even if they produced it. The company is not even the owner of machines that work in plants.

However, in Chinese legal regulations, these businessmen have certain rights to use assets. To maintain the appearance of legality, the Chinese apparatus of power must therefore receive a signature from them or other documents. This will remove it from the control of a given company. House arrests aim to ” convince” businessmen to agree to what Chinese power requires from them. Everything usually ends so that state-owned companies purchase the shares of such companies. Eventually, the party takes over the majority control over them.