Xi Jinping Says What He Means – WSJ

Investors can gamble on the political risk if they choose, but note how coherent Mr. Xi s program is and how doggedly he s pursuing it. During his near-decade in power, he has expanded the role of state-owned enterprises in the economy and expanded the role of Communist Party officials within ostensibly private companies. He has orchestrated a crackdown on sources of political dissent, notably in Hong Kong and Xinjiang province. Now he is crushing the potential threat to Party rule posed by private companies that foster connections between, and gather data on, individual Chinese, independent of the state.

Mr. Xi is doing more than making an example of a few large companies. He is reshaping China s economy into a form he hopes will be more politically pliable. That endangers the prosperity of Chinese citizens, but foreign investors have also been warned.

via www.wsj.com

This is bad for the Chinese but makes the PRC less of a threat to us.