China’s year of crackdowns: Party first, business second | Business and Economy

China’s crackdown on private enterprise in 2021 wiped more than $1 trillion off the market value of some of the country’s largest companies.

Beijing’s tightening grip on the economy came as officials stressed the importance of prioritising “high-quality” growth that benefits the general population over maximising gross domestic product.

The “common prosperity” drive targeted sectors ranging from real estate and education to technology and entertainment, tanking the stock price of household names such as Alibaba Group, Tencent Holdings, Didi Chuxing Technology Co, and New Oriental Education and Technology Group, and reining in the personal influence of corporate bigwigs such as Jack Ma and Pony Ma.

The crackdown has left many businesses and investors wondering nervously about the future of growth and innovation in China.

“For companies, this means that their job is no longer to make money, but instead to contribute to societal goods,”…

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