Alibaba is in a predicament. Last week, Chinese giants confirmed that Chinese regulatory authorities had imposed a fine of $2.8 billion on them, defending their years of abusing their market position.

According to experts, this is a strong signal for any technology giant willing to turn to liberal thinking. No one can be stronger than the party, "as described by the BBC.

In fact, the Communist Party has made it impossible for citizens to live without using at least one application designed or approved by Beijing. From payment methods to social life, Beijing has eyes everywhere.

This threat may prompt some companies to leave the country, or at least force them to comply with very strict rules.

Alibaba, pride has turned into shame

As a direct international competitor of Amazon in the United States, Alibaba is one of the largest B2C and B2B online markets for various products and a source of pride for China.

Until three months ago, its CEO Jack Ma disappeared from public view. In November 2020, Jack Ma delivered a controversial speech at a gathering of prominent figures, criticizing China's financial system., According to the BBC.

He said that the government is studying a 'pawnshop mentality'. He hasn't appeared for three months, and some rumors have spread that he hasn't even lived.

Reading Alves: Alibaba: A Turbulent E-commerce Giant

Six months later, Alibaba was fined

Three months after Jack Ma reappeared in public view, the company confirmed that it had been fined heavily. $8.2 billion in 'abuse of market position', according to the government.

Although Alibaba has 800 million users in China, only other companies have been summoned by the Communist Party of China. According to the BBC, over 34 companies have received reminders to 'make Alibaba a lesson for you'

The government has given these companies a month of 'self reflection' time, hoping that they will publicly apologize.

The Party is above all else

All in all, Alibaba's fine seems to have one goal: to give a stern lesson to any other CEO who wants to criticize the CPC publicly.

On April 12th, Alibaba began this process by sharing a public statement, vowing to completely change its way of thinking. On April 21st, the stock fell 5% to $230.

The above content is considered market commentary information and should not be considered as independent investment research or investment advice