Xi's tech clampdown signals end of a capitalist era

The more than US$1 trillion of market capitalization losses tied directly to Xi's recent policies has China bulls mutating into China bears.

The emerging question is how much the blunt-force trauma inflicted by Xi's regulators will cost China's wider economy?

"The reason," Roach says, "Is that China has yet to create a culture of confidence in which its vast population is ready for a transformative shift in saving and consumption patterns. Only when households feel more secure about an uncertain future will they broaden their horizons and embrace aspirations of more expansive lifestyles."

The eccentricities of tech founders, who served as the face of China at Davos, were long tolerated and even celebrated.

China experts are, of course, doing their best to rationalize what Xi might be up to.

Xi's recent decisions, Gave says, may be "Driven by a geopolitical assessment of China's situation."

The scattershot approach Xi is taking in hitting some of China Inc's most vibrant sectors could turn off many of the investment giants Xi hoped to court.

https://asiatimes.com/2021/08/xis-tech-clampdown-signals-end-of-a-capitalist-era/