When asked if there could be policy missteps in China's crackdown on its tech companies, Andy Rothman, an investment strategist with Matthews Asia, explained that it reflects a different approach to regulation as compared with the West.
"They are dealing with regulatory issues in a different way than Western governments deal. So normally, a Western government would lay out a regulatory structure in the early days of a new industry, like fintech being developed," he told CNBC's "Street Signs Asia."
"The Chinese experience has been instead, to say to entrepreneurs, go ahead and give this a try. And then we'll step in there after we see how it works and decide how to regulate it," said Rothman. "And I think that's what they're doing now."