- GATESTONE INSTITUTE - AUG 16, 2021 - Gordon G. Chang -
Moreover, crackdowns in Xi Jinping's China never really end. They are more than just "wiggles," as superstar hedge-fund manager Ray Dalio called them in a July 30 LinkedIn posting, as he attempted to explain away Beijing's harsh moves against business.
The announcement follows a series of stunning attacks on private business.
Xi's moves to force China's companies off foreign exchanges could be in preparation for an expropriation of foreign shareholdings in Chinese businesses.
On August 11, the Chinese Communist Party's Central Committee and the central government's State Council issued what the official Xinhua News Agency called "an outline on promoting the building of a rule of law government from 2021 to 2025, on the basis of the successful implementation of a previous 5-year plan."
The Chinese party-state's announcement included a promise to enact a series of laws on, among other things, national security, tech innovation, monopolies, education, health and quarantines, food and drugs, and foreigners.
"The announcement," Reuters stated, "signals that a crackdown on industry with regard to privacy, data management, antitrust, and other issues will persist on through the year."
Just "through the year"? By its own terms, the announcement makes clear that the crackdown will continue until at least the end of the ongoing 14th Five-Year Plan, in 2025.
Moreover, crackdowns in Xi Jinping's China never really end. They are more than just "wiggles," as superstar hedge-fund manager Ray Dalio called them in a July 30 LinkedIn posting, as he attempted to explain away Beijing's harsh moves against business.
These anti-capitalist assaults look as if they will last as long as Xi holds power. That could be decades, as he clearly intends to break the two-term pattern set by his two immediate predecessors as Party general secretary.
Xi's recent attacks on private business are undoubtedly more than a momentary event, something far more long-lasting than "crackdown" implies. At no time since the early days of the People's Republic has China turned so quickly inward, shutting off the outside world. The August 11 announcement confirms that the insular move will be institutionalized by the adoption of laws.
The announcement follows a series of stunning attacks on private business. The assault began with the unprecedented halt to the initial public offering of Ant Group early last November, just 36 hours before the scheduled start of trading in what would have been the world's biggest IPO. Similarly, Beijing on July 2 launched a regulatory barrage against DiDi Global, which began trading shares in an IPO on the New York Stock Exchange two days earlier.
Since then, the attack on business has broadened from tech companies to others, most notably businesses in the private tutoring sector. In the middle of last month, Beijing issued rules prohibiting those firms from operating on a for-profit basis on core school subjects.
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