What is a ‘black hole’?
The news of the year for a few years now is the new crop of Chinese billionaires.
The year’s most-talked-about stock is Alibaba, a company that, in 2015, went public at a record valuation of $19.3bn.
Since then, however, it has become embroiled in a legal battle with Alibaba’s parent company, Tencent Holdings, which owns a large chunk of the Chinese internet giant.
The company is also facing a backlash from local governments and investors who have accused it of profiting from China’s “one-child policy”.
The Alibaba story is not unique.
The internet giant has faced accusations of profiteering from its Chinese operations in the past.
Alibaba has said it has set aside millions of dollars to fund projects in China, including in some of its most impoverished regions, and to help fight poverty.
But critics say the company is often making profits from China in ways that undermine local development.
The case in question involves the sale of a small number of computers at a local hardware store.
One of the computers sold was from a Chinese manufacturer called Zhenqi Electronics.
Zhenqiang was also selling computers for a Chinese company called Lidian Technology, which is not listed on Alibaba.
Lidian is a subsidiary of Chinese electronics giant Huawei.
After Alibaba bought the computer business, the sale went through.
Zhanqiang sold the computer to a Taiwanese company called Jinko, which sold it to another Taiwanese company, Cengci.
The sales were not disclosed.
The Zhanqi electronics company was founded in 1992.
The other company was established in 2002.
The Cengcus company is a Chinese subsidiary of China Telecom, a telecommunications company with a market capitalisation of about $10bn.
A Cengcius spokesperson told Business Insider that it was unclear whether any of the money raised for Jinkos hardware purchase went to the local hardware manufacturer.
Lidia Durov, a lawyer and director of the Hong Kong law firm Huai Lijiao, told Business Insights that the sale was likely illegal.
“The Chinese government is actively promoting a one-child rule in China and they are making a lot of money by selling this computer,” Durovi said.
“In order to do this, the Chinese government should have paid for the computers in full, but they didn’t.”
She added that the purchase was not a “one off”.
“The idea that one-family households are the only ones who have access to this information is a lie,” she said.
Duroiv said she would call the Chinese authorities to complain about the sales.
“I would ask them to look into whether this is an illegal and unethical business that they are promoting,” she told BusinessInsights.
“If the government wants to take the action, it should do so on their own, but if they want to make the money off of this, then they need to have a mechanism that they can actually enforce.”
But Durovil said she did not believe the sale would be a cause for concern, as it would not be illegal for Chinese companies to sell their own products in order to benefit from the “one child rule”.
China is also under pressure to boost its economic growth, as the country faces the effects of a severe global recession.
Last month, the country’s National Development and Reform Commission announced a new law that would allow the sale and export of property up to 50 per cent below the value of the property and allow for foreign investors to invest in real estate.
China has been in a slump for years, as global financial markets struggle with a slowing economy and the slowing of Chinese economic growth.
It is also dealing with a severe health crisis that has seen some 3.5 million deaths in 2017, according to government data.
“With the Chinese economy facing its worst downturn in decades, the government has made the right decision in not selling off these local assets and buying up foreign companies to boost the countrys economic growth,” Dirov said.
The Chinese government has long been criticised for being a net importer of Chinese goods, which has been a point of contention with other countries.
Chinese officials have argued that their economic success has resulted from investing in the country rather than buying foreign products from abroad.
“There’s a lot going on with the Chinese market right now and the Chinese state is playing a very important role in the global economy,” Dovid Vadim, a professor at the University of Hong Kong, told Reuters.
“China has a lot to offer other countries, including the US, but the Chinese are not just the Chinese, they’re the Chinese.
If they’re allowed to play this role, then the US and the rest of the world will be forced to pay more attention to China.”
The Chinese leader has been keen to promote a “Chinese Dream” as he seeks to cement a foothold in the US.
Last year, President Xi Jinping visited Washington and declared that China would “lead the world in creating a prosperous and sustainable Chinese economy”. This