China’s Progressive Authoritarianism

3rd Aug, 2021

China’s Progressive Authoritarianism

The assault on big tech has spawned a far-reaching new vision for the world's second-largest economy, one in which investor interests take a distant third place to maintaining social stability and national security. Chinese officials summoned the country's top technology businesses for a data security lecture, promised greater monitoring of abroad share offerings, and accused ride-hailing companies of suffocating competition in a flurry of action on Friday. This comes on the heels of increased data security standards for offshore IPOs, orders for food-delivery companies to pay their employees a livable wage, rising limits on expensive housing, and a crackdown on tutoring firms. When you add it all together, it's clear that the traditional laws of Chinese business no longer apply, leaving investors to wonder which industry will be the next target for investors. China's authorities have given entrepreneurs and investors the leeway to push the adoption of new technology and open up new prospects for growth for decades, even as they maintained strict control over critical industries like banking and oil. Deng Xiaoping established the tone in the mid-1980s when he stated that it was fine if certain people became wealthy initially. With GDP slowing and tense ties with the United States, they are emphasizing on different goals.