Capitalist excess!!
China’s new reality is rife with danger
The president will be defined by his campaign against his country’s capitalist excesses
Xi jinping is waging a campaign to purge China of capitalist excesses. China’s president sees surging debt as the poisonous fruit of financial speculation and billionaires as a mockery of Marxism. Businesses must heed state guidance. The party must permeate every area of national life. Whether Mr Xi can impose his new reality will shape China’s future, as well as the ideological battle between democracy and dictatorship.
His campaign is remarkable for its scope and ambition. It started to rumble in 2020, when officials blocked the initial public offering of Ant Group, an affiliate of Alibaba, a tech giant. It is thundering onward, having so far destroyed perhaps $2trn of wealth. Didi, a ride-hailing outfit, has been punished for listing its shares in America. Evergrande, an indebted property developer, is being driven towards default. Trading on cryptocurrency exchanges has been banned as, more or less, has for-profit tutoring. Gaming is bad for children, so it must be strictly rationed. China needs larger families, so abortion must become rarer. Male role models should be manly and celebrities patriotic. Underpinning it all is Xi Jinping Thought, which is being drummed into the craniums of six-year-olds.
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