The Didi Phenomenon

What happened to Didi could happen to any company in China. The fundamental reason behind is not what Didi did, but the political and economical system in China. It’s not a market economy in China. There is no rule of law, but rule by official power, or by the ruling party in China. In fact, the party can cut the throat of any company at will.

What happened to Didi is not the first case, as the case for Alibaba is still fresh in our memory, and will not be the last case. This is another wake up call to the everyone living in the free world and taking freedom and rule of law as granted. Without systematic change in China, the drop in share prices of Didi or Alibaba is NOT temporary, and therefore not an opportunity for investors to pick up the shares.

The US regulators and administration should ban the public listing of Chinese companies or any company which generate its revenue mainly from a country where there is no rule of law to protect investors.