The Chinese communists are likely to go after Alibaba

Chinese President Xi Jinping has cracked down on Alibaba, which happens to be the most successful company in China. The government wants to focus on stepping up its anti-monopoly efforts so that it can stem the disorderly capital expansion among the top companies. Leading companies have monopolized credit and other vital resources, and the government wants this to stop. The government wants Alibaba to ally with the state. As a result, Alibaba must focus some of its efforts and resources on advocating for important causes like eradicating poverty. Alibaba has to deal with the issues, including correcting its anticompetitive behavior accused by regulators and being compliant with the government's agenda. Market watchers fear that the crackdown could ultimately dull the competitive spirit that has made China a pioneer in the economy over the years. According to sources, efforts to get company officials to comment on the matter have been in vain as pressure continues to mount. The crackdown seems pretty tough for some companies, like the Ant Group. This company is seen as a significant risk to the country's financial system and the government is treating it very harshly. Sources suggest that Alibaba may end up receiving milder treatment than the other companies. However, the company will focus on distancing itself from its flashy and watchful founder, Jack Mar. The other requirement is that the company coordinate with the communist party. Regulators intend to go easy on Alibaba for many reasons, one of which is a fear of dulling a globally popular technology powerhouse. In 2015, Qualcomm was fined $ 975 million for anti-competitive practices. This time the whip hits Alibaba and the company is expected to pay a higher sum. Alibaba will set the record as the company to pay the largest fine in the country's history to date. The government's crackdown is a painful move, but financial experts say it won't be nearly enough to cripple Alibaba. According to these experts, Alibaba is too big to be toppled by such a move.