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BEIJING – Following a series of high-profile crackdowns on Chinas tech giants over the past two years, the worst appears to be over.

Last week, a top regulatory official said in an interview that the rectifying of bad practices by big tech firms is basically complete. Meanwhile, Chinas top anti-graft watchdog, the Central Commission for Discipline Inspection (CCDI), notably left out the mention of platform companies, a catch-all term referring to tech firms, in a statement following its first meeting of the year.

But those in the industry say it cannot be taken for granted that tech firms are now in the clear. Firms will also have to navigate a new normal under the watchful eyes of regulators, they say, where growth can be deemed excessive at the drop of a hat, resulting in heavy penalties.

In an interview with the official Xinhua news agency published last weekend, head of China Banking and Insurance Regulatory Commission Guo Shuqing said the government will promote the healthy development of Internet firms in a bid to prop up private businesses.

The special rectification of the financial business of 14 platform companies is basically completed, and a few remaining problems are also being resolved promptly, he said without going into details.

Following that, normalised supervision will be implemented to encourage platform companies to operate in compliance with regulations.

In yet another sign that the tech firms are no longer an area of concern, the term platform companies was left out of the CCDIs post-meeting communique. In contrast, the 2022 edition said the anti-graft watchdog would focus on investigating the corruption behind capitals disorderly expansion and platform monopolies.

While this is official confirmation that were off the hook in a way, it really doesnt matter any more because the damage has already been done, said a government relations executive at a major tech firm.

She, like the other industry insiders The Straits Times spoke to, declined to be named, so they could speak openly about government policy.

Over the past two years, everyone can see how rules can change at the drop of a hat. One minute youre preparing for a foreign listing and the next moment youre under investigation, she said.

There are also these new rules we now have to abide by, which makes doing business very difficult. The era of high growth is over.

Another tech executive who oversees game development said the climate has become increasingly inhospitable for companies who want to expand internationally.

Any company with a sizeable user base, meaning at least one million users, needs to apply for permission from the government to move data out of the country. Its untenable, he said.

Beginning in November 2020, the sector came under probe for a slew of practices including monopolistic behaviour and mishandling of their troves of user data, while others were taken to task for expanding into financial services.

Most of the countrys biggest firms ranging from tech giant Alibaba to food delivery platform Meituan to Tencent, which runs the countrys biggest chat app, WeChat have come under probe and been slapped with billions of yuan worth of fines. More On This Topic Jack Ma: Alibaba tycoon who soared on China's tech dreams grounded by regulators China tech stocks winning back investors after awful year Hardest hit, however, appears to be ride-hailing platform Didi, previously best known for edging Uber out of the Chinese market. Since its New York listing was scuppered by Chinese regulators in July 2021, its app has been taken off all app store platforms, rendering it unable to register new users till this day.

It was part of a drive to better regulate the tech industry, which has done extremely well over the past two decades under lax supervision.

But for many tech firms, the cautionary tales of Alibaba and Didi have been enough to put a damper on any expansion plans.

I had a foreign colleague who was initially brought on to help with our international expansion, but after we saw what happened to Didi, where even their mainland business was hit, none of us even dare think of anything beyond our borders, the gaming executive said. More On This Topic Didi shows China's tech giants must first answer to Beijing As Beijing takes control, Chinese tech companies lose jobs and hope

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U.S. routs Kazakhstan; into quarters at worlds

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U.S. routs Kazakhstan; into quarters at worlds

HERNING, Denmark — After a goalless opening period, the United States went on to secure its place in the quarterfinals of the ice hockey world championship with a 6-1 rout of Kazakhstan on Sunday.

The Americans are tied atop Group B with the Czech Republic on 14 points, one more than Switzerland. The already qualified Czechs and Swiss have two more games to play in the preliminary round. The U.S. completes the group stage against the Czechs on Tuesday.

“I thought we were ready to play out of the gate,” U.S. head coach Ryan Warsofsky said. “We need to continue to build and get ready for what will be a big challenge on Tuesday against the Czechs.”

Despite an unproductive first period in Herning, the U.S. jumped to a commanding five-goal lead in the second.

Frank Nazar broke the deadlock 6:58 into the period with a shot from the left circle above the glove of Sergei Kudryavtsev. The forward added two assists later in the game.

Defenseman Jackson Lacombe wristed a shot from the blue line through heavy traffic to double the lead with 8:14 to go in the second period.

The next two goals came in a span of 58 seconds.

Forward Tage Thompson scored his fifth at the tournament — after receiving a pass from defenseman Zeev Buium — to make it 3-0 with 6:00 left. Matty Beniers increased the advantage to four from the left circle before Michael Kesselring scored with a high shot from a tight angle from the boards 56 seconds before the end of the period.

U.S. defensive star Zach Werenski skated toward the goal before beating backup goalie Maxim Pavlenko who came on at the beginning of the final period.

Goaltender Jeremy Swayman made 16 saves for the U.S.

In Stockholm, Austria beat Slovenia 3-2 in a shootout to keep alive its hopes of reaching the quarterfinals for the first time. Austria is tied in fourth with Slovakia in Group A.

The top four teams from each group will advance.

Later Sunday, Switzerland meets Hungary in Herning and Slovakia plays Latvia in Stockholm.

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Post-Brexit EU reset negotiations ‘going to the wire’, says minister

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Post-Brexit EU reset negotiations 'going to the wire', says minister

Negotiations to reset the UK’s post-Brexit relationship with the EU are going “to the wire”, a Cabinet Office minister has said.

“There is no final deal as yet. We are in the very final hours,” the UK’s lead negotiator Nick Thomas-Symonds told Sky’s Sunday Morning with Trevor Phillips.

On the possibility of a youth mobility scheme with the EU, he insisted “nothing is agreed until everything is”.

“We would be open to a smart, controlled youth mobility scheme,” he said. “But I should set out, we will not return to freedom of movement.”

Politics latest: PM outlines ‘benefits’ for UK from closer EU ties

The government is set to host EU leaders in London on Monday.

Put to the minister that the government could not guarantee there will be a deal by tomorrow afternoon, Mr Thomas-Symonds said: “Nobody can guarantee anything when you have two parties in a negotiation.”

But the minister said he remained “confident” a deal could be reached “that makes our borders more secure, is good for jobs and growth, and brings people’s household bills down”.

“That is what is in our national interest and that’s what we will continue to do over these final hours,” he said.

“We have certainly been taking what I have called a ruthlessly pragmatic approach.”

On agricultural products, food and drink, Mr Thomas-Symonds said supermarkets were crying out for a deal because the status quo “isn’t working”, with “lorries stuck for 16 hours and food rotting” and producers and farmers unable to export goods because of the amount of “red tape”.

Asked how much people could expect to save on shopping as a result of the deal the government was hoping to negotiate, the minister was unable to give a figure.

Read more:
What could a UK-EU reset look like?
Starmer’s stance on immigration criticised

On the issue of fishing, asked if a deal would mean allowing French boats into British waters, the minister said the Brexit deal which reduced EU fishing in UK waters by a quarter over five years comes to an end next year.

He said the objectives now included “an overall deal in the interest of our fishers, easier access to markets to sell our fish and looking after our oceans”.

Turning to borders, the minister was asked if people would be able to move through queues at airports faster.

Again, he could not give a definitive answer, but said it was “certainly something we have been pushing with the EU… we want British people who are going on holiday to be able to go and enjoy their holiday, and not be stuck in queues”.

PM opens door to EU youth mobility scheme

A deal granting the UK access to a major EU defence fund could be on the table, according to reports – and Prime Minister Sir Keir Starmer has appeared to signal a youth mobility deal could be possible, telling The Times that while freedom of movement is a “red line”, youth mobility does not come under this.

The European Commission has proposed opening negotiations with the UK on an agreement to facilitate youth mobility between the EU and the UK. The scheme would allow both UK and EU citizens aged between 18 and 30 years old to stay for up to four years in a country of their choosing.

Earlier this month, Home Secretary Yvette Cooper told Phillips a youth mobility scheme was not the approach the government wanted to take to bring net migration down.

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Lack of UK training ‘big driver of net migration’

When this was put to him, Mr Thomas-Symonds insisted any deal on a youth mobility scheme with Europe will have to be “smart” and “controlled” and will be “consistent” with the government’s immigration policy.

Asked what the government had got in return for a youth mobility scheme – now there had been a change in approach – the minister said: “It is about an overall balanced package that works for Britain. The government is 100% behind the objective of getting net migration down.”

Phillips said more than a million young people came to the country between 2004 and 2015. “If there isn’t a cap – that’s what we are talking about,” he said.

The minister insisted such a scheme would be “controlled” – but refused to say whether there would be a cap.

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‘It’s going to be a bad deal’

Shadow cabinet office minister Alex Burghart told Phillips an uncapped youth mobility scheme with the EU would lead to “much higher immigration”, adding: “It sounds very much as though it’s going to be a bad deal.”

Asked if the Conservatives would scrap any EU deal, he said: “It depends what the deal is, Trevor. And we still, even at this late stage, we don’t know.

“The government can’t tell us whether everyone will be able to come. They can’t tell us how old the young person is. They can’t tell us what benefits they would get.

“So I think when people hear about a youth mobility scheme, they think about an 18-year-old coming over working at a bar. But actually we may well be looking at a scheme which allows 30-year-olds to come over and have access to the NHS on day one, to claim benefits on day one, to bring their extended families.”

He added: “So there are obviously very considerable disadvantages to the UK if this deal is done in the wrong way.”

Jose Manuel Barroso, former EU Commission president, told Phillips it “makes sense” for a stronger relationship to exist between the European Union and the UK, adding: “We are stronger together.”

He said he understood fishing and youth mobility are the key sticking points for a UK-EU deal.

“Frankly, what is at stake… is much more important than those specific issues,” he said.

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