Last week, a top regulatory official told Wall Street leaders that China’s recent regulatory tightening is not intended to rein in the country’s private firms nor decouple from the United States or international financial markets.
The crackdown has engulfed sectors as diverse as technology, education, and real estate, wiping hundreds of billions off the market capitalizations of some of the country’s biggest corporations. The action has been raising concerns among investors about who might be next.
President Xi Jinping has called for “common prosperity” in China to close a widening wealth disparity that threatens the country’s economic growth and the legitimacy of the CCP’s rule.
The crackdown on tech firms is a part of this latest propaganda. According to China Securities Regulatory Commission (CSRC) Vice Chairman Fang Xinghai, the moves aim to tighten consumer-facing platform companies’ regulations.
“I don’t think you can find a government anywhere in the world that is as positive and as focused on technology as China,” Fang was cited as saying during the fifth China-US Financial Roundtable (CUFR) on Thursday, Sept. 23.
Bloomberg reported that the CSRC also justified its assault on several businesses during a Saturday roundtable meeting with Wall Street leaders. It is said that the meeting was held remotely and was attended by roughly 35 people, including heads of big Wall Street corporations.
The three-and-a-half-hour discussion last week focused on suggestions for further opening and developing financial markets, as well as creating a level playing field for domestic and foreign businesses in the world’s second-largest economy.
According to one of the attendees, Fang, who is also the president of the CUFR, left a remark about China’s unprecedented regulatory crackdown at the end of his presentation, which was well-received by his Wall Street audience.
“They listened very intently to what Fang had to say and most of us were very satisfied,” said the attendee, referring to the Wall Street executives.