The Chinese government has gone “too far” in cracking down on large technology companies — that will hurt innovation and slow down economic growth, an analyst said Tuesday.
Regulators in China have in the last few months ramped up scrutiny on the country’s tech giants such as Alibaba and Tencent. The companies now face fines and new rules aimed at reining in monopolistic business practices.
“There’s certainly a logic to clamping down on monopolies and some of the abuses of power that we see from some of the companies. But they’ve gone too far and basically scared innovators from innovating,” said Scott Kennedy, senior advisor and trustee chair in Chinese business and economics at the Center for Strategic and International Studies.
Kennedy explained to CNBC’s “Street Signs Asia” that the private sector is an important source of productivity gains that fuel much of China’s economic growth.