Sumary of China should take steps to reassure its private entrepreneurs:
- These are unnerving times for China’s go-getting private entrepreneurs.
- The country’s most flamboyant business representative, Alibaba Group Holding founder Jack Ma, has disappeared from public view after Beijing scuttled the IPO of his multibillion fintech company Ant Financial last December.
- The second punch landed four months later when the government imposed a record fine of $2.75 billion on Alibaba for its alleged monopolistic practices.
- China’s cybersecurity authority punished the company by banning future downloads of its app and launching an investigation of its data security, wiping more than $20 billion off Didi’s market value.
- And Ma was several degrees luckier than private entrepreneur Sun Dawu, who has long been a thorn in the side of the Chinese Communist Party.
- © The Washington Post/Getty ImagesBut it was Xi Jinping’s call for common prosperity that must really be causing China’s entrepreneurs to lose sleep.
- That communique, issued after a meeting of the Central Financial and Economic Affairs Commission on Aug.
- The cumulative effect of these developments has shaken the confidence of all but the hardiest Chinese entrepreneurs, with Beijing’s message now quite clear: no matter how wealthy or influential individual private entrepreneurs may be, the Party retains ultimate power and can do whatever it wants.