Ant Group, Alibaba's online payment subsidiary in Beijing's sights

Today, Beijing is asking public companies to review their agreements, and their economic relations, with Ant Group.

AFP/File

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Alibaba, the Chinese e-commerce giant, recorded a sharp drop on the Hong Kong Stock Exchange on Tuesday.

The regulatory noose is tightening on Jack Ma and his Alibaba group and this time it is the turn of Ant Group, the giant's online payment subsidiary.

Beijing asks state-owned companies to review their economic relations with Ant Group.

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For several months, Ant Group, the online payment subsidiary of

Alibaba

, has been in the crosshairs of communist power.

Last November, Beijing put a halt to its IPO.

Then, the Chinese authorities attacked its Alipay mobile application, which has nearly a billion users.

Alipay was forced to restructure because it was becoming too powerful in the face of state banks.

Consumer credit services have therefore been removed from the platform.

Alipay now focuses on online payment.

Increased surveillance of private companies

Today, the pressure from the Chinese authorities is stepping up a notch.

Beijing is asking state-owned companies to review their agreements, and their economic relations, with Ant Group.

This is another blow for Alibaba.

The e-commerce giant has already been

fined a record

two billion euros by the Chinese regulator.

This takeover shows the Communist Party's desire

to

monitor private companies more closely.

And especially in the Internet sector, where giants have emerged in recent years.

►Also read

: China: towards a new turn of the screw for the internet giant Tencent

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