China to slap new curbs on tech giants' deals: Reuters

The proposed requirements from CAC will apply to any platform company with more than 100 million users. - Reuters

BEIJING (Bloomberg): China’s Internet overseer will require the country’s tech giants to seek approval before making investments or raising funds, Reuters reported, citing unidentified sources.

The Cyberspace Administration of China is drafting new guidelines that will require any company with more than 100 million users or over 10 billion yuan (US$1.6 billion) in revenue to seek the watchdog’s approval before such deals, Reuters reported Wednesday (Jan 19). Any internet firm in sectors named on a "negative list” issued last year will also require approval, the news agency said.

Chinese regulators are increasingly scrutinising the flurry of deals executed annually by Tencent Holdings Ltd. and Alibaba Group Holding Ltd, which Beijing regards as instrumental to shoring up dominance over their respective spheres.

Since 2021, regulators have levied fines on scores of deals cut during the go-go era of the past decade, chilling investment across much of the Internet sector.