While China Ruthlessly Brings Big Tech Into Line, the US Looks Increasingly Hesitant

Efforts to regulate the world’s technology giants are revealing the enormous differences between Beijing and Washington’s respective approaches. Both positions are very clear: there is a need for more regulation to avoid monopoly abuses, and in both cases guidelines have been set to strengthen this framework.

There, the similarities end. In the United States, the Biden administration has dedicated itself to placing intellectuals, experts and academics in antitrust legislation in strategic posts, prompting Amazon and Facebook to demand their recusal — it seems that a professional life dedicated to the rigorous study of a given subject merely means bias — and Joe Biden’s statements, when they point to a specific company, are quickly and carefully nuanced. But in Beijing, the approach is radically different.

Xi Jinping’s administration acts with an iron fist, demanding absolute obedience, and is not concerned about turning on companies it once bragged about in international forums. After refusing to postpone its IPO in the United States, despite Beijing’s “suggestions” ride hailing giant Didi now faces an unprecedented fine, in addition to the obvious problem that the company has been unable to incorporate new users since July 4, as its app is excluded from China’s download platforms. DiDi’s share price has dropped to around $8 from $14 when it when it made its stock market debut on June 30 at $14, reaching $16.40.

A harsh punishment designed to illustrate the omnipotence of the Chinese government. It is clear that Beijing is willing to do whatever it takes to bring the tech giants into line: it has now turned its sights on Amazon, ByteDance, NetEase and DiDi for their alleged abuse of user data, proving that in China, if anybody ever had any doubts, that the only organization that can collect and use people’s data as it sees fit is the Chinese Communist Party.

Is this simply a question of upholding a particular system, or is it about deeper attitudes? In China nobody dares challenge the government’s decisions, but in the United States the Biden administration is facing litigation, challenges, and problems of all kinds to implement change that was part of Biden’s electoral program and enjoys considerable support not only among his supporters, but even within the ranks of the opposition. As a result, some, such as investor and venture capitalist Roger McNamee, are beginning to call on Joe Biden to take a tougher hand with big tech if he wants to restore such fundamental issues as privacy, competition and democracy itself.

Guaranteeism or weakness? Initially, Biden seemed firm, decisive and even aggressive by putting leading figures feared by technology companies in key positions; his ardor for change now seems to be cooling. Let’s not forget that big tech was among the main donors to his campaign. Are we talking about a situation where everyone is entitled to a fair defense, or is this a president who, despite his high-sounding statements, is wary of offending those who helped him into office?

If we don’t start seeing results that put the tech companies in their place sooner rather than later, I fear we will have seen enough of what the tone of Joe Biden’s presidency is going to be: all bark and no bite.

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This post was previously published on Medium.

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