China’s big internet firms, once known as lavish spenders when it came to external investments and internal employee perks, have tightened their belts in recent months as economic headwinds stiffen and capital support dries up, reports the South China Morning Post.
The second quarter of 2022 has seen a spectacular retreat by China Big Tech as companies slash costs amid weaker consumer spending, regulatory scrutiny and an increasingly tense US-China relationship—a sharp contrast to the past years of freewheeling growth driven by a buoyant economy and a supportive capital market.
Alibaba Group Holding and JD.com, the top two e-commerce platforms, reported their slowest revenue growth on record amid weakened consumer spending last quarter, while Pinduduo, known for rock-bottom online prices, reported a surprisingly good performance.
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