Three Represents

Since 2020, China's control of some private enterprises has caused great difficulties for some companies, and these regulations have once again triggered people's discussion on the trend of "national advancement and national retreat". Some analysts believe that this series of actions is about ensuring that private companies are not too strong and can truly meet the political agenda of Chinese President Xi Jinping. The CCP is worried that the development of "Big Mac" companies like Alibaba will pose a threat to the CCP to a certain extent. Therefore, the "Sword of Damocles" that suppressed private technology giants has been out of the sheath, which caused a chilling effect. The CCP is entering a "exquisite totalitarian" stage.

The private sector plays an important role in the economy, as it contributes more than 50 percent of taxes, 60 percent of GDP, 70 percent of technological innovation, 80 percent of urban employment and 90 percent of new jobs and firms.

China cannot compete with the US without the prosperity and development of the large number of Chinese private enterprises. The pioneering and innovative spirit of private enterprises, including private internet enterprises, have not only brought about great change in people's living standards, but also substantially increased China's competitiveness. China will still need private enterprises in the future.

The Chinese government is stepping up enforcement actions against technology giants in terms of antitrust, data security, and fiscal compliance. These technology giants almost completely control China's entertainment, retail and other industries. Chinese Internet giants Alibaba, Ant Financial, Tencent, Baidu, and Didi Chuxing have all been severely rectified by the regulatory authorities. Victor Shih, an associate professor at the University of California, San Diego, told VOA in July 2021: "In history, the Communist Party has valued control rather than productivity or efficiency. What we are seeing now is a typical example of this logic."

Chinese Vice Premier Liu He on 06 September 2021 vowed unchanged and firm support to the country's private sector, a sign from the top of reassurance to businesses, clarified misinterpretations, and also fought back at foreign criticisms of China's tightened regulatory measures over a range of sectors. Liu's speech was a clear sign to shake off concerns of private enterprises, and it also indicated that anti-monopoly efforts will continue. The reassurance came after a tightened restriction from the central government has affected a range of sectors, which according to a Bloomberg calculation, has triggered a selloff that at one point wiped off $1.5 trillion from Chinese stocks. The move has also led to worries and anxieties about prospects of the industry among domestic industry players and foreign investors.

China is on a path of socialism with Chinese characteristics, which is fundamentally different from the West. The core of this difference is that in China, capital cannot dominate the country, but should play a role in constructively promoting economic development, the national economy and people's livelihoods. It must not influence politics, nor play any part in reshaping the logic and pattern of social governance, or interfere with ideology and value systems. In short, capital must be pure, and avoid unrestricted development, avoid giving itself dominant functions as is the case in Western societies. No matter how successful they are, entrepreneurs must remain humble, firmly support the leadership of the Communist Party of China (CPC), abide by laws and regulations, and resolutely be a positive energy in promoting the CPC's lines, principles, and policies.

In 2000, Jiang Zemin presented his theory of the "Three Represents" as the basis of his administration, namely, representing the development trends of advanced productive forces, the orientations of an advanced culture and the fundamental interests of the overwhelming majority of the people of China. Before the CPC implemented the 'Three Represents' and allowed private entrepreneurs who had met the requirements to join the Party back in 2001, the number of private businessmen who were Party members accounted for a large proportion of the total number of private entrepreneurs. And many had already become Party members even before they started their own business.

Confronted with growing symptoms of incipient unrest in the late 1990s, Jiang Zemin, sought to shore up the Communist Party’s flagging popular appeal by broadening its social base. The result was Jiang’s famous “theory of the three represents” (sange daibiao lilun), which officially invited China’s nouveaux riches capitalist entrepreneurs and commercial middle classes to join the CCP. The rhetorical commitment to the private sector increased in both the Party and the state constitution. The CCP offered an elaborate ideological justification for promoting private entrepreneurship, and even integrating capitalists into the political system. Jiang Zemin's notion of the ``Three Represents'' was largely designed to legitimize this practice of incorporating capitalists into the Communist system.

The Communist Party encouraged its own members to go into business, not just former Party and government officials but also rank-and-file members, to "take the lead in getting rich" -- a prominent slogan in the 1980s -- and to actively be a part of the private sector. It also co-opted successful entrepreneurs into the Party. Those who are both Communist Party members and private entrepreneurs are often referred to as "red capitalists" to indicate this connection with the Party.

Whereas only about 6 percent of the population of the country belong to the Party, almost 40 percent of private entrepreneurs are also Party members. Most of them were in the Party before going into business, but about a third or so of them were co-opted afterward. This shows the growing integration at the individual level of entrepreneurs into the Party and Party members into the private sector.

There was also a growing number of institutional links between the Party and the private sector. Many of the business associations in the country are officially sanctioned, or at least closely supervised by, the Party. There was also an attempt to build Party organizations within private firms and this process has picked up since the time the "Three Represents" slogan was adopted into the Constitution. Building Party cells in private firms is not just a way of putting eyes and ears of the Party into the private sector. In many ways, these Party cells operate more as logistical support for the firms themselves. They support the business aspects of the enterprise more than the ideological training that usually you would expect Party cells to do.

Under Xi Jinping, Beijing has undertaken a campaign of disappearing, investigating and imprisoning financial tycoons who do not toe the party line. The continued squeeze on one of China's most influential companies is the latest sign that the leadership is ready to deflate the ambitions of big tech firms in a runaway Internet sector.

China’s entrepreneurs, particularly its tech titans, have been put on notice since Alibaba co-founder and former CEO Jack Ma ran afoul of the country’s leadership in 2020 and the government unleashed a torrent of regulatory actions and directives aimed at containing their growing might. Many of the activities these entrepreneurs had become accustomed to – accumulating vast wealth, functioning like capitalists elsewhere, expressing their individuality, starting charitable foundations and educational institutions in their name – are increasingly unlikely to be tolerated in President Xi Jinping’s China in the coming years.

From technology giants to food delivery platforms to travel applications, the iron fist of the regulatory authorities seemed to extend to private enterprises in different fields. Since 2020, the supervisory authorities seem to be continuously releasing signals to strengthen the management and control of private enterprises and politicize the business environment through a variety of methods. The Chinese authorities call 2020 a "significant year" for anti-monopoly work, and 2021, the first year of the "14th Five-Year Plan", has been defined as a "big year" for anti-monopoly work.

On January 2, 2020, in order to further improve the anti-monopoly legal system, the State Administration for Market Regulation drafted the "Draft for Amendments to the Anti-Monopoly Law (Draft for Public Comment)" according to work arrangements, and solicited public opinions. This is also the first "overhaul" and upgrade since the "Anti-Monopoly Law of the People's Republic of China" was formally implemented on August 1, 2008. In addition to being included in the basis for determining the market dominance of Internet operators, it has also greatly increased illegality penalty standards.

The Central Economic Work Conference, held from December 16 to 18, 2020, emphasized one of the eight key tasks to "do a good job" in 2021, one of which is "strengthening anti-monopoly and preventing the disorderly expansion of capital." In addition, the Anti-Monopoly Guidelines of the Anti-Monopoly Commission of the State Council on Platform Economy was officially launched on February 7, 2021. The State Administration for Market Regulation stated that the Guidelines emphasized that the Anti-Monopoly Law and supporting regulations apply to all industries. , Treat all kinds of market entities equally and fairly, aiming to prevent and stop monopolistic behaviors in the platform economy, and promote the orderly, innovative and healthy development of the platform economy.

In April 2020, 12 departments including the State Internet Information Office and the State Administration for Market Regulation jointly issued the "Cyber Security Review Measures", which will be formally implemented on June 1, 2020. A month later, the National Internet Information Office began to solicit public opinions on the "Network Security Review Measures (Revised Draft for Solicitation of Comments)."

In addition to improving measures and law enforcement tools several times, and releasing anti-monopoly signals, Chinese President Xi Jinping also issued "important instructions" for the united front work of the private economy in the new era. On September 16, 2020, he said that we must adhere to the "two unwavering", take uniting and guiding private economic personnel as an important task, unite private economic personnel around the party, and better promote the private economy healthy growth. "Four consciousnesses", "four self-confidence", "two safeguards", unswervingly listen to the party, follow the party, and always be politically "understandable" have become the guidelines that private economic people must follow.

Tech firms such as iFlytek and smartphone maker Xiaomi have been strengthening their Party construction work. "The rapid development of iFlytek is thanks to the correct guidance of the CPC and the hard work of Party comrades, who are also the backbone of our management team," according to Wu Dehai, Party chief of the CPC committee of the company.

The uncertainties over the whereabouts of Chinese billionaire Xiao Jianhua mounted during the February 2017 Spring Festival holidays, following contradictory media reports of him being "missing from his Hong Kong apartment" and a statement from Xiao's company - Beijing-based Tomorrow Holding - which said that "Xiao is receiving medical treatment overseas." The tycoon, who ranked 32nd along with his wife on Hurun's China Rich List 2016 with a net worth of $5.97 billion, was reportedly arrested at the Hong Kong Four Seasons Hotel "by Chinese public security agents" and brought to the Chinese mainland, the Financial Times said. The New York Times on Tuesday quoted a statement issued by the Hong Kong police as saying that "the subject" had entered the mainland via a border crossing. Xiao was taken away to "assist into the investigation" into China's stock market turmoil of 2015, the South China Morning Post reported.

In 2020, outspoken real estate tycoon Ren Zhiqiang was jailed for 18 years on alleged corruption charges, months after penning an essay critical of the Communist Party. Property tycoon Ren Zhiqiang, who was detained and expelled from the ruling Chinese Communist Party after penning an article highly critical of general secretary Xi Jinping, was planning to plead not guilty at his September 2020 trial. Ren opted to defend himself at the Beijing No. 2 Intermediate People's Court, where he faced charges of bribery and abuse of power. Ren Zhiqiang refused to "confess" or plead guilty to the charges against him since the start of the investigation. Ren Zhiqiang's trial has attracted a lot of public attention inside China, because he is a princeling who dared to oppose Xi. Ren, 69, was probed by the the ruling Chinese Communist Party's disciplinary arm, the Central Commission for Discipline Inspection (CCDI) after writing an open letter about Xi's responses to the coronavirus epidemic, the Sino-U.S. trade war and the Taiwan elections.

The article, titled "The lives of the people are ruined by the virus and a seriously sick system," doesn't mention President Xi by name, but criticizes his policies, including the president's insistence that the media are part of the same family as the ruling party, and must always represent its interests. "When the media have the same name as the party, it's the people who are left out," the letter said. "The coronavirus epidemic in Wuhan has shown us just how true that is."

Jack Ma Yun, founder of Chinese e-commerce giant Alibaba Group, was identified as a Party member on 26 November 2018, which sparked heated discussions online. Some media reports said it was an example of how the Party penetrates into every aspect of Chinese business. This was actually not the first time it has been revealed that Ma is a Party member, media reports said. When the Zhejiang Merchants Association was first established in October 2015, Ma was appointed as the first head of the organization and introduced as a Party member.

Alibaba established its Party branch in 2000 and upgraded it to a Party committee in 2008 due to the company's growing number of Party members, according to media reports. By 2018 Alibaba had nearly 200 Party branches and about 7,000 Party members. Ma highlighted the importance of Party construction work with younger generations, pledging to explore Party building inside high-tech firms in the new era.

People's attention to the series of regulations began with Ant Financial. The listing plan of Ant Technology Group was suspended by the Chinese regulatory authorities on November 3, 2020. The notice issued by the Shanghai Stock Exchange to Ant Technology Group stated that the company's senior management was jointly conducted by relevant departments for supervision and interviews, and that changes in Ant Financial's financial technology regulatory environment "may cause your company to fail to meet the issuance and listing requirements or information disclosure requirements." The Shanghai Stock Exchange decided. Suspend the listing plan of Ant Technology Group.

A month later, the State Administration for Market Regulation of China announced on December 24 that it would initiate an investigation into Alibaba Group Holdings Co., Ltd. for suspected monopolistic conduct such as "choosing one of two". On April 10, 2021, the State Administration for Market Regulation ordered Alibaba Group to stop illegal activities and imposed a fine of 18.228 billion yuan.

On March 3, 2021, the State Administration of Market Supervision imposed a fine of 1.5 million yuan on Meituan's community group buying business under Meituan due to "improper price behavior". On April 26, 2021, the State Administration for Market Regulation of the People's Republic of China, based on the report, has filed a case for suspected monopolistic conduct such as "choosing one of two" against Meituan in accordance with the law.

On July 2, 2021, the State Cyberspace Administration of China announced that in order to prevent national data security risks, maintain national security, and protect the public interest, it will conduct a cyber security review of "Didi Travel". During the review period, "Didi Travel" will stop new user registration. On July 16, 2021, the Office of the Cyberspace Administration of China announced that, in conjunction with the Ministry of Public Security, the Ministry of National Security and other regulatory agencies, will be stationed in Didi Chuxing to conduct a cyber security review.

The Ministry of Industry and Information Technology of China announced on 26 July 2021 that it will launch a six-month special governance campaign against China's Internet industry, focusing on rectifying four issues including threats to data security and violations of user rights. The Ministry of Industry and Information Technology announced on its official website that the Ministry had already deployed a special rectification action 23 July 2021 through a video and telephone conference, and this rectification action will last six months. The actions of the Ministry of Industry and Information Technology are seen as part of a larger-scale purge of high-tech companies and police improper use of personal information. The authorities had issued huge fines or other penalties against China's largest technology company.

The notice of the Ministry of Industry and Information Technology of China stated that the next step for the special rectification action is to consolidate the main responsibility of the enterprise, strengthen coordination and linkage, and strengthen integrity and self-discipline by organizing enterprises to conduct self-inspection and rectification, collecting inspection clues, establishing problem details, and strengthening law enforcement accountability. Do a good job of propaganda and guidance, form a long-term mechanism to ensure that results are achieved, and indeed increase the people's sense of gain.

Jack Ma, the billionaire founder of Chinese internet behemoth Alibaba, made his first public appearance in over two months in an online video 20 January 2021, ending weeks of speculation about his whereabouts. In the 50-second video, Ma, China's richest man with a net worth of nearly $40 billion, congratulated teachers supported by his foundation and made no mention of his disappearance or official efforts to tighten control over Alibaba and other internet companies. Ma, a ruling Communist Party member, disappeared from public view after he irked regulators by criticising them in an October 24 speech at a Shanghai conference. Days later, regulators suspended the planned multibillion-dollar stock market debut of Ant Group, a financial platform that grew out of Alibaba's payments service, Alipay. Shortly afterwards, the record-breaking $37 billion IPO of his financial group Ant was spiked at the last minute by Chinese regulators in a shock move which some saw as retaliation for Ma's outspokenness.

A court in the northern province of Hebei on 28 July 2021 handed down an 18-year jail term to the agricultural billionaire who aided China's embattled human rights lawyers. Sun Dawu, 57, was handed the sentence by the Gaobeidian Municipal People's Court, which found him guilty of a slew of charges including "picking quarrels and stirring up trouble," a charge often used to target critics of the ruling Chinese Communist Party (CCP). Sun was also found guilty in a trial behind closed doors alongside 20 relatives and colleagues of "gathering a crowd to attack government departments" and "obstructing officials in the course of their administration." He was also ordered to pay fines of 3.11 million yuan (U.S.$475,000) by the court. Sun's eldest son Sun Meng, was sentenced to 12 years' imprisonment, while his brothers Sun Dehua and Sun Zhihua were handed jail terms of 12 and nine years respectively.

Sun alluded to CCP leader Xi Jinping's current campaign to reduce the power and wealth of the private sector in favor of state-owned enterprises. In a reference to late Song Dynasty general Yue Fei, a legendary folk hero generally said to have died on the orders of chancellor Qin Hui on a trumped-up charge, Sun said: "There are no guarantees that loyal service to one's country will result in a happy ending."

With over 1,058 billionaires, according to 2021 Hurun Global Rich List data released earlier this year, China now has more ultra-wealthy than any other country on Earth – including capitalist bastion the United States. That wealth surge has Beijing increasingly concerned that the gap between rich and poor could become a problem for Communist Party rule, whether in perception or reality or both.

China’s billionaires were becoming terribly generous. Wang Xing, the chairman and founder of food delivery giant Meituan, donated around $2.7bn in stocks to his personal charity promoting scientific research and education, along with several other large gifts. After Colin Huang, founder of e-commerce giant Pinduoduo, resigned as chairman of the company in March 2021, he gifted around $1.85bn to an educational fund. And earlier this year He Xiangjian of the Midea home appliances empire and Xu Jiayin of the Evergrande real estate empire forked over roughly $975m and $370m respectively to poverty alleviation, medical care and cultural programs. The list of largesse goes on and on, with billionaires like Zhang Yiming, founder of TikTok parent ByteDance, giving around $77m for education to his hometown of Longyan in Fujian province, and with former Olympic diving great Guo Jingjing donating $10m to the city of Wuhan.

With overseas listings by Chinese companies coming under closer domestic scrutiny amid the regulator's push for stronger data protection, local businesses that want to raise funds are focusing on the home capital market rather than US IPOs. The reported shift comes in the wake of a July 2021 draft guideline by the Cyberspace Administration of China (CAC) that required internet platform companies with more than 1 million end users file for cybersecurity reviews before applying for overseas IPOs.

Chinese ride-hailing giant Didi was slapped with a cybersecurity review earlier this month, shortly after its hasty listing on the New York Stock Exchange. Three additional internet platforms, job recruiting platform Boss Zhipin, and Yunmanman and Huochebang - two truck-booking platforms under the Full Truck Alliance, were also put under cybersecurity scrutiny, on heels of the probe into Didi.

China on 24 July 2021 banned academic training agencies from raising capital through IPOs and from foreign investors a move that an expert said may deal a fatal blow to many Chinese education companies. Some US-listed Chinese tutoring companies even face delistings. Academic training agencies are banned from going public for financing and capitalizing operations, according to an overall guideline to ease the burden on school students in compulsory education issued by the General Office of the Communist Party of China Central Committee and the General Office of the State Council.

Those agencies who have violated the regulations will be cleaned up and rectified, the guideline read. he stringent supervision measures verified a market rumor which caused US-listed Chinese education stocks to plummet, wiping out billions of dollars for renowned companies such as New Oriental Education & Technology Group and TAL Education Group. Reports that Chinese authorities planned to further tighten regulations on the private education industry caused TAL Education to fall 70 percent and New Oriental Education and Technology to drop 54 percent.

Chinese companies listed on United States stock exchanges must disclose the risks of the Chinese government interfering in their businesses as part of their regular reporting obligations, a top US Securities and Exchange Commission (SEC) official said on 26 July 2021. Democratic commissioner Allison Lee’s comments are the first by an SEC official since Chinese regulators launched a massive cyber-probe of ride-hailing giant Didi Global last week, just days after its $4.4bn New York listing, wiping 25 percent off its share price. “Public companies must disclose significant risks which, for China-based issuers, may sometimes involve risks related to the regulatory environment and potential actions by the Chinese government,” Lee, who served as acting head of the SEC from late January to mid-April, told Reuters.

The "Opinions on Further Reducing the Burden of Compulsory Education Students' Homework and Off-campus Training" issued by the State Council of China 24 July 2021 mentioned that "adhere to strict governance and comprehensively regulate off-campus training behavior." The document sets up a series of restrictions on various training institutions, such as not occupying national statutory holidays, rest days and winter and summer vacations to organize subject training; not high salaries to rob school teachers; listed companies are not allowed Invest in discipline training institutions through stock market financing; the training time shall not be later than 21 o'clock.

The disciplinary training institutions mentioned in the "Opinions" "are not allowed to be listed for financing, and capitalized operations are strictly prohibited." Some people think that this seems to be the government's control of some private education industries. The share price of New Oriental Education Group had fallen sharply since the "double reduction" opinion was suddenly introduced. Some other industries are also worried that they may become the next target, which in turn may lead to a large wave of stock selling. The market leader, New Oriental, Silekao Education, and Excellence Education have all suffered rare setbacks. In the US stock market, New Oriental shares fell by 60% on 23 July 2021. So far in 2021, the stock had fallen by as much as 85%, from US$19 to US$2.62. Bloomberg quoted Wu Yuefeng, manager of the capital management company, as saying that "turning this industry into a non-profit industry is equivalent to completely eliminating this industry."

The public reason for the Chinese government to rectify the off-campus training market is to reduce the academic and financial burden of students. But observers pointed out that this round of corporate reorganization is exactly the same as the government's reorganization of Chinese Internet giants. It is nominally anti-monopoly or to reduce the burden on students, but it is actually aimed at cracking down on private enterprises, robbing them of their wealth and resources, and thereby completely eliminating these independence.

Some experts believe that China’s online gaming industry may be targeted because the Chinese government has been concerned about young people’s addiction to games. Rich Bishop, CEO of Beijing-based app publisher AppInChina, said the government is likely to crack down on many games that are still being released without proper authorization, and even specific games that abuse user data. The State Council of China urged the reduction of drug prices in 2021 and called for the reform of the complex and multi-level medical system. Since then, investors are also paying close attention to healthcare companies.

According to a report by the Financial Times on 29 July 2021, China’s securities regulators have met with top financial institutions such as BlackRock, Fidelity and JPMorgan in an attempt to quell people’s attacks on the Chinese government. Concerns of Chinese companies listing in the United States.

The U.S. Securities and Exchange Commission stated that before allowing Chinese companies to raise funds through the U.S. stock market, it will require Chinese companies to disclose "the uncertainty that the future actions of the Chinese government may have a serious impact on the financial performance of operating companies." The Securities and Exchange Commission also requires Chinese listed companies to disclose whether they have been denied listing on the American Stock Exchange by the Chinese authorities, and the risks that such approvals may be denied or withdrawn.

Companies regulated by the Chinese government seem to be doing different things, and the reasons for their control seem to be completely different. George Magnus, an economist at the China Center at Oxford University in the UK, told VOA: “So every industry has its own story. It may be about the social rights of gig workers, or it may be about the cost of education. Corrosive effects on childbirth. With the passage of new laws on data privacy and security, it may be about data privacy."

But he also said that if you take a step back from a single industry, you will see the continuity of these measures, which can be traced back to Ant Financial’s abrupt cancellation of the IPO plan. Even before that, there have been some occurrences, that is to private companies and private companies. Entrepreneurs’ blows, especially those companies that have foreign interests, foreign investment, or foreign shareholders. "In essence, this is a political agenda and it is about control. Regarding ensuring that private enterprises and private entrepreneurs do not become too large, do not become too powerful, and truly fit the social agenda, Xi Jinping claimed The people are very important." Magnus said.

He said that entrepreneurs such as Jack Ma "will certainly think about how to run their businesses like entrepreneurs anywhere in the world, and what these businesses can generate in terms of money and power. Therefore, this may not always be related to political goals. It is consistent with the ideological goals of a more party-centered philosophy, and this is the philosophy that Xi Jinping very openly and clearly supports."

Derek Scissors, an economic and trade expert at the American think tank Enterprise Research Institute, believes that China's measures in various fields cannot be confused because the reasons behind them are different. In all cases, the CCP is reminding that money is the most important private enterprise, and the party’s tolerance for them is a necessary condition for them to make money.

Professor Zhiguo He, Professor of Finance at the University of Chicago, believes that the Chinese government’s recent "double reduction" opinion in the education industry is not aimed at the private sector of education. This is different from previous investigations and reviews of companies such as Ali and Didi. What is behind education is excessive competition caused by market failure, which has a great impact on society, and this is when the government takes action. He believes that the lower-level issues behind education also involve a series of issues such as the college entrance examination, educational resources, and school district housing.

He also said that companies such as Ali and Didi have made great contributions to the Chinese economy in the past few years. However, the development law of the digital economy platform economy is that it is too large to fail and generate monopoly, so the government needs to act. As for when the government will One of the factors behind this move is the current tense US-China relationship. He said that China hopes that these companies will be listed in Hong Kong, so as to avoid politicized factors in communication with overseas market regulators. He also mentioned that in certain industries, China is indeed in control, and the so-called "state advances and people retreat" does exist, but Beijing also particularly hopes to develop private hard-core technology companies including biological and electric power.

Bloomberg quoted Dexter Tiff Roberts, author of the book "The Myth of Chinese Capitalism: the Worker, the Factory, and the Future of the World" as saying: " The Chinese leadership has embarked on a new and risky road of economic policy formulation.” Roberts also wrote that Beijing “is determined to strengthen its control over private enterprises and foreign investment, and to preserve domestic technologies such as semiconductor chips and electric vehicle batteries. A certain market share and enhance the role of state-owned enterprises."

Some analysts believe that China is actually suppressing some giant private companies to make way for the squeezed SMEs. "Creating a good environment for the development of small and medium-sized enterprises" seems to be China's current policy. Liu He, member of the Politburo of the CPC Central Committee and Vice Premier of the State Council, said last week: “If SMEs are good, China’s economy will be good. We must firmly support the development of SMEs and create a good environment for the development of SMEs.” He also said: “SMEs It is the main body of the market and the main force in securing employment. A general rule is that where SMEs are well developed, the economy is very good. Vigorous SMEs, diverse and differentiated economic ecology, are China’s economic resilience The most important guarantee."

In Magnus' view, China's suppression will not disappear, or it will not disappear soon. He said: "I am convinced that the Communist Party believes that China's technology companies, data platforms, financial companies, and digital companies are at the forefront of technology. These technologies will change the face of China in the world, just as the government hopes it will be in the next 10 years and 20 years. But the contradiction is that these companies are allowed to have too much freedom, and they conflict with the government’s political agenda, so the government feels it is necessary to control them and use a very tough political method. Control them, but this will actually hinder their ability to innovate. This is the contradiction."

Shi Jiandao said that the operation of Chinese supervision is in waves (comes in waves). After they strike, they will not manage for a period of time. "We will see the regulators take a step back and say, well, you know we It’s the supervisor, we won’t bother you now." "I guess we will not see further crackdowns on private enterprises. But even if this is true, it will not be easy for the private sector next year." He said.

Shi Zonghan said that some private companies, especially those in the technology industry, may be subject to stricter regulatory review by multiple agencies. But he does not believe that China has the ability to eradicate the entire technology industry, "because many senior officials' children are now becoming stakeholders in various ways." He also said: “The United States and its allies have suspected that Chinese technology companies are stealing data for the Chinese government. Now, even the Chinese government does not trust these technology companies and requires additional surveillance. This will of course aggravate foreigners’ attacks on Chinese technology companies. Don't trust."