As President Xi Jinping targets China’s massive technology giants, there is uncertainty over how he will get them to share key data as part of the next step in a sweeping plan to transform the world’s second-biggest economy.
Until recently, China’s megafirms like Jack Ma’s Alibaba Group Holding Ltd. and Tencent Holdings Ltd. have operated in a similar way to U.S. counterparts Facebook Inc. and Alphabet Inc., harnessing user data to refine an expanding array of digital services.
Since more data leads to better products, the tech platforms often become natural monopolies — giving them enormous wealth and power that also opens the door for abuse.