02-23-2022
Effects of Chinese Communist Party's Crackdown on Private Companies and China's Economy
As if the Covid-19 pandemic had not occurred in 2020, as if the floods that affected 27 provinces and major metropolitan cities like Chong Qing had never happened, the Chinese Communist Party (CCP) under the one-man rule of its general secretary Xi Jinping forced passing the National Security Law in June 2020. The National Security Law was designed to crack down on those protesters in Hong Kong, who demanded local court trials under the Hong Kong law rather than in China. They wanted free democratic elections and the rule of law.
The CCP expanded the National Security Law to further tighten its control over private companies in China. The Law provided a legal framework to crackdown on individuals and companies. Companies affected by the crackdown range from giants like Alibaba, large retailers, major international corporations to tens of thousands of small and midsize companies all over China.
Instructed by the CCP, divisions of Information Security within the Chinese police and Market Supervision Bureaus in major cities combed through online advertisements published by private companies and user generated content by regular internet users. Any single word, phrase or photo used on a site that was deemed in violation of the CCP censorship and 100-year anniversary was cause for a penalty. A fine would be swiftly issued, with an amount ranging from RMB 200,000 to 1 million per incidence. It marked the first time for the Chinese government directed by CCP to directly take money from private companies for cooked up violations based on usage of words in business marketing and communications. To use a description familiar to many, it was like bandits coming down from the mountains to rob travellers.
The crackdown came from Xi Jinping, the Chinese communist leader who seems most afraid of being challenged by entrepreneurs, entertainers with a large following, and owners of small and midsize businesses. Xi seems to believe these people are mostly likely to challenge him because they dare to think freely.
The crackdown ordered the publicly traded shares of DiDi in the U.S. to be delisted. It stopped public offering of the Ants Group. The crackdown caused the China's real estate industry to grind to a halt with high profile companies such as China Evergrande to default on its USD debt obligations. The CCP ordered the shutting down of the extracurricular tutoring industry, causing unemployment of tens of thousands of teachers.
The above is a recent report by Shandong Bureau of Housing and Construction on the planned housing improvements 2016-2022.
Shandong province has a population of (2020) of 101,527,453. Its 2021 GDP is US$1.288 trillion (CNY 8.31 trillion) . Shandong Province is a good indicator of the state of China's economy given its large population and level of affluence.
The CCP expanded the National Security Law to further tighten its control over private companies in China. The Law provided a legal framework to crackdown on individuals and companies. Companies affected by the crackdown range from giants like Alibaba, large retailers, major international corporations to tens of thousands of small and midsize companies all over China.
Instructed by the CCP, divisions of Information Security within the Chinese police and Market Supervision Bureaus in major cities combed through online advertisements published by private companies and user generated content by regular internet users. Any single word, phrase or photo used on a site that was deemed in violation of the CCP censorship and 100-year anniversary was cause for a penalty. A fine would be swiftly issued, with an amount ranging from RMB 200,000 to 1 million per incidence. It marked the first time for the Chinese government directed by CCP to directly take money from private companies for cooked up violations based on usage of words in business marketing and communications. To use a description familiar to many, it was like bandits coming down from the mountains to rob travellers.
The crackdown came from Xi Jinping, the Chinese communist leader who seems most afraid of being challenged by entrepreneurs, entertainers with a large following, and owners of small and midsize businesses. Xi seems to believe these people are mostly likely to challenge him because they dare to think freely.
The crackdown ordered the publicly traded shares of DiDi in the U.S. to be delisted. It stopped public offering of the Ants Group. The crackdown caused the China's real estate industry to grind to a halt with high profile companies such as China Evergrande to default on its USD debt obligations. The CCP ordered the shutting down of the extracurricular tutoring industry, causing unemployment of tens of thousands of teachers.
The above is a recent report by Shandong Bureau of Housing and Construction on the planned housing improvements 2016-2022.
Shandong province has a population of (2020) of 101,527,453. Its 2021 GDP is US$1.288 trillion (CNY 8.31 trillion) . Shandong Province is a good indicator of the state of China's economy given its large population and level of affluence.
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