• Ernie Diaz

Tech A Step Back

Here's what you can plan on in the world's biggest planned economy: new industries blossoming, praised for job & wealth creation, then abruptly trimmed down by regulations. 

Tech topiary is currently top of the Chinese gov.'s to-do list. Yesterday we mentioned ed-tech, and regulations to safeguard both parents and teachers. 

There's also a new plan to crack down on one of the chief perks of living in China: free and speedy, tech-enabled delivery services. Seems there is a hidden cost to the magic of same-day, frequently same-hour, delivery, borne by an army of overworked, underpaid, utterly marginalized delivery people, millions strong. 

"From a Marxist, or just populist standpoint, pledging to make things a bit more fair for these legions of exploited delivery workers is a welcome step," says Jimmie Jeremejev. "From a capitalist, investor-driven viewpoint, not so much. But as with ed-tech, we believe a more fairly treated work force will disrupt profits and valuations short-term, yet guarantee a more healthy, sustainable platform ecosystem long-term."

10 views0 comments

Recent Posts

See All

Too Big to Bail

We'd like to bear witness against the notion that Chinese giants are simply propped up by their government when they stumble. Sure, China's central bank and regulatory bodies shut Anbang down a few ye

Schools & Regulations

First they came for the tech companies, and we did not speak, for cybersecurity and monopolies are a thing. Next they came for the listed education companies, and we did not speak, for anyone in China

Free Money

It's just the same as with your therapist: the more you open up, the harder it is to stop. Opening up the economy led to 9%= GDP growth for decades, a golden era of prosperity. Anyone grateful? Nope.