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The Chinese government is interfering in private companies, adopting the ‘golden share’ strategy

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The Chinese government is acquiring partnerships from private companies to increase its influence. The government is said to be working on a comprehensive strategy of the Chinese Communist Party (CCP). The special thing is that China is implementing its approach by making the big companies smaller. The latest example is businessman Jack Ma, who has been missing for weeks.

News agency ANI quoted a media report as saying that state-sponsored companies and regulators were seeking representation and participation on the boards of technology companies. Government companies and regulators, such as China’s Cyberspace Administration, are buying “golden shares” of private companies. The government is particularly interested in companies that deal with a wide range of important information and data.

What is Golden Share?

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Golden share is a type of share which gives many benefits to the holder. It also includes special powers such as veto to change the company’s charter. Not only that, the holders can prevent other holders from buying more common shares than a certain proportion. China first started using gold shares in 2016.

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The agency quoted the report as saying that the CCP was keeping an eye on listed companies, particularly in the United States. These include companies such as Full Truck Alliance, Byte Dance and Simlaar. Most companies accept gold shares to avoid sanctions from Chinese regulators. The recent increase in the use of CCP’s gold shares is aimed at monitoring the data of Internet companies.

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