The Chinese Communist Party (CCP) has re-awoken to a profound truth: Rich, secure capitalists are the natural enemies of authoritarian regimes. In a hybrid autocratic-capitalist model, capitalism is the means to generate wealth, but power is the end goal. Successful capitalists naturally begin to demand that their personal and property rights be protected from authoritarian fiat. Capital in the hands of entrepreneurs is a political resource; it poses a threat to the implementation of centralized plans.
Realizing this, the CCP has begun to assert control over the private sector by “installing . . . Party officials inside private firms” and having state-backed firms invest in private enterprises. In the absence of civil rights or an independent judiciary, “private” companies have no real independence from the government in China. Dissent and demands for civil rights are a threat to the regime and will be crushed.
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