China vs. capitalism: Didi learns its lesson the hard way – Axios

China’s leadership is deeply suspicious of the international financial system, and wants to ensure that the Chinese Communist Party remains the absolute power in the land, unthreatened by fast-growing corporate giants.

What’s new: That lesson was learned the hard way this week by Didi, but the repercussions are likely to be much larger. Already, Chinese fitness app Keep has decided to scrap its planned $500 million IPO in New York.

Why it matters: The core paradox of modern China that it is a hypercapitalist success story while remaining a Communist dictatorship is resolving itself in favor of the latter. China’s moguls and foreign shareholders should expect a lot more turbulence ahead.

via www.axios.com