Beijing [China], March 25 (ANI): In order to increase its influence in the private sector, the Chinese Communist Party have been obtaining a “golden share” in private companies, especially internet/technology firms holding large amounts of data and operating critical information infrastructure.
As part of “golden share”, one per cent stake with representation in the board/voting rights were bought by the CCP to increase State-ownership of private companies and to strengthen Party’s influence in the private sector, reported local media.
The State-backed firms/companies and Chinese regulators viz., China’s Cyberspace Administration, have been obtaining ‘golden share’.
The Party is especially focusing on Chinese private firms/companies listed in the US, such as the digital freight company `Full Truck Alliance’, social media firm ‘ByteDance’ and online audio platform ‘Ximalaya’, reported local media.
Most of such companies have accepted the “golden share” arrangement preferably to avoid sanctions by Chinese regulators or in lieu of preferential treatment while applying for licenses.
China first began using “golden shares” in 2016 to enhance its discreet monitoring of business operations and to influence firms’ decision staking.
The recent uptick in the use of “golden share” by CCP is intended to establish direct oversight of internet companies’ collection, use and storage of consumer data, supplementing the Data Security & Personal Information Protection laws enacted in 2021. (ANI)
This report is auto-generated from ANI news service. ThePrint holds no responsibility for its content.