Since February, Chinese stocks have dropped sharply. Jie Zhao/Getty ImagesJPMorgan stated that Beijing's recent regulatory crackdowns will not pose a threat to the wider global economy.Analysts stated that they view the potential for further regulation changes in China as a problem local to China.The firm reiterated its overweight rating of emerging market stocks and stated that many Chinese stocks now trade at a relative discount.Subscribe to our daily newsletter 10 Things Before The Opening Bell.JPMorgan stated that Beijing's recent regulatory tightening across industries has led to a selloff in Chinese stocks. This is not likely to pose a threat to the wider global economy.A Monday note by Marko Kolanovic, an analyst team, stated that although regulations will continue to be in place in the region, China would "stop short" of making changes that could cause an economic shock.The firm reiterated its "overweight” rating for emerging market stocks and pointed out that the current prices of Chinese stock valuations in affected sectors are significantly lower than historical prices.Analysts stated that they view the threat of China's regulatory changes as a problem local to China. This risk, given the significant corrections in affected market segments suggests that it has been priced in and could ease from now. It does not pose a threat to our overall risk-on position.JPMorgan anticipates more regulations regarding gaming, data usage, protection and antitrust, platform fees, and labor protection. They also stated that the technology sector's non-consumer-facing spaces are relatively protected from regulations.China began increasing scrutiny of certain businesses in 2020 after the abrupt cancellation by Ant Group of its IPO. However, the clampdown has now spread to other fintech giants like Tencent and Alibaba.Recent news about regulation that would prevent publicly-listed companies teaching school curriculum has sparked a selloff in Chinese education stocks. Even industries that are not subject to new regulations have suffered, such as the US-listed Chinese electric car companies.