From WSJopinion: Xi Jinping’s regime has throttled back free enterprise, undercutting what brought China prosperity. Its oppressed citizens will pay the price, writes Mickey D. Levy.
Chinese President Xi Jinping on a giant screen in Hangzhou, China, Oct 23.The 20th National Congress of the Chinese Communist Party solidified Xi Jinping’s power and confirmed his ideological view of China’s future. Beyond that, it revealed little about how China will deal with its faltering economy. Growth is slowing and increasing autocracy will only aggravate long-run problems. The command-and-control model of governance is inherently flawed.
Mr. Xi’s regime has throttled back free enterprise, undercutting what brought China prosperity. Tighter controls are squeezing private entrepreneurship, innovation and capital mobility. The government’s increasing ownership of industry and bureaucratic allocation of national resources are generating inefficiencies and excesses.
Mr. Xi is tightening state control over China’s digital economy, large-cap social-media and information-technology companies and many businesses he deems a threat to Communist ideals. These include firms that provide a platform to express contrary views and “excess” wealth generation. More capital is being allocated to politically loyal state-owned enterprises. Stricter financial regulations and constraints on capital flows are oppressive and reduce capital to finance private entrepreneurs.