China Is Nationalizing Its Tech Sector

As Bloomberg News reported this week, a key stumbling block in trade negotiations between China and the U.S. has been Beijing's extensive support for its technology firms. But if President Donald Trump's administration thinks that will change any time soon, it hasn't been paying attention: Far from reducing support for the tech sector, China is on the verge of nationalizing it.

By many measures, China's tech companies seem unstoppable. Private equity and venture capital investment grew from $14 billion in 2012 to $120 billion in 2017. Last year, 34 Chinese companies joined the elite ranks of startups valued at more than $1 billion, second only to the U.S. From health care to bike-sharing, Chinese companies are improving on ideas from overseas and innovating in their own right.