Crackdowns Everywhere Show Xi Strengthening Party Grip on China
- Xi hits billionaires, state-owned firms, Hong Kong lawmakers
- ‘Maybe the only thing they value more than stability is power’
The past few weeks have shown that Chinese President Xi Jinping can move extremely fast when he hones in on long-term threats to the Communist Party. And right now they revolve around the convergence of technology, finance and Hong Kong.
Since unveiling a goal last month to double the size of the economy by 2035, China has embarked on a sweeping crackdown of some of its most valuable companies. The shock suspension of Ant Group Co.’s $35 billion initial public offering was quickly followed by more anti-monopoly rules to rein in former tech darlings Tencent Holdings Ltd. and Alibaba Group Holding Ltd., leading to a $290 billion equity sell off last week.
At the same time, he’s moved to further snuff out any opposition in Hong Kong’s legislature, the most democratic institution under Chinese rule. And authorities are forcing bond investors to take more responsibility for risk in a debt market where defaults have been historically rare, helping to deflate a potential debt bubble while also avoiding an inadvertent funding crunch.