Chinese President Xi Jinping is pushing to revive the private sector, but with a crucial caveat – within limits. Successful stockpickers need a unique blend of financial acumen and market insight, as well as an understanding of Xi’s evolving state of mind.
In 2018, regulators launched a crackdown on China’s tech industry, which sent shockwaves through the global economy. The move forced Alibaba founder Jack Ma out of public life and wiped $2 trillion from the country’s market value, causing foreign investors to flee Chinese stocks.
Xi’s efforts to rebuild the private sector come as the rest of the world grapples with an aging population. Africa is no exception, where young entrepreneurs are crucial for growth. However, China’s growing influence in the region has raised concerns about forced unification and the erosion of Taiwan’s diplomatic standing.
The US-China trade war has also sparked chaos in global markets. Reciprocal tariffs have been tried before, but with disastrous results. The Lucy Letby case highlights systemic failures and a national malaise that must be addressed. As China expands its diplomatic reach, it may be laying the groundwork for a forced unification of Taiwan.
Xi Jinping’s vision for China’s private sector is complex and multifaceted. While he seeks to nurture entrepreneurship and innovation, he also demands unwavering loyalty to the Communist Party. The delicate balance between economic growth and political control will be crucial in shaping China’s future.
Source: https://www.economist.com/leaders/2025/02/20/xi-jinping-wants-the-private-sector-to-thrive-again