Even now the regulatory storm in the tech sector seems to be calm for the moment, but political analyst Victor Shih still expects that investors will be unsure about their future in China, as the next storm never seems far away, he tells at Bloomberg.
Victor Shih:
“After the intense regulatory actions on tech companies in the past two years, it will take quite some time for the government to rebuild its credibility. The problem is that many of the regulatory actions, such as limitation on gaming, a ban on online tutoring, and regulations on data security and privacy, likely will not be reversed. Some regulations on pricing might be relaxed, which would be bullish. The problem is investors still do not know when the next “storm” will emerge.”
“Given the high impact of government policies on production and shipping, I suspect some foreign companies will seek production elsewhere where policy uncertainties are a bit less. I still do not expect a massive exodus from China since producing in China still comes with many advantages.”
Victor Shih is a speaker at the China Speakers Bureau. Do you need him at your (online) meeting or conference? Do get in touch or fill in our speakers’ request form.
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