• The government is not expected to cripple e-commerce, but business models at these companies will need to adjust. Afterschool tutoring is a different story—the industry has been structurally impaired.
  • SEI’s portfolios remain generally underweight Chinese e-commerce and after-school tutoring stocks.

Titans of e-commerce have become the corporate equivalent of rock stars. These companies (and often their founders) are known all over the world. This fame has invited scrutiny from politicians of all stripes around the globe. Most political figures seem to agree that these online platforms present a host of perceived threats—from concerns about data privacy to disinformation distribution (even if definitions of these threats are wildly varied). While elected leaders in many countries regularly express concerns about e-commerce companies, little actual action to address them has taken place. In the People’s Republic of China (PROC), the situation is different.

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