What is happening is that China is trying to balance the line between the role of government and the role of the market. These lines tend to move one way or the other as certain industries expand and find more space. At some point they cross that line or they come very close. This is the time when government and business must, in a way, re-evaluate their own respective roles – especially in the case of internet companies which have grown very rapidly in China. They not only pushed the line of influence reach, but they also did it very quickly.
It is therefore a very dynamic development which has forced the government to intervene to respect these limits. The way China moves between state and market: It’s like a rubber band. There is a long term direction, but there are short term tactical adjustments.
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