All of this exacerbated by an unpredictable political factor: Aging autocrats easily get cranky, which is a problem since Xi is likely to stay in office into his eighties.
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Lawyers create so many complications that the rules of governing everything from health care and housing to banking have become incomprehensible.
Rather than acknowledge that it could not deliver the goods, the Communist Party decided instead to blame the people. It was their âoverpopulationâ that was the problem, not the inadequate economic system that the leadership insisted on.
Xi has talked about achieving national greatness without backing it up with economic growth. The trouble is that when people sufferâ as they do through a property collapse, high unemployment, or lockdownsâ they start to wonder what they are really getting. Itâs certainly not enrichment. When theyâre given a cold, hard smack in the face by something that certainly doesnât feel like greatness, they become unmoored. This sense of alienation has been a big reason to rĂšn.
Xi has forcefully reminded Chinaâs tech companies that they cannot represent a power center that challenges the stateâs sovereignty. It was, in other words, an attempt to change the cultural mindset of companies. The Communist Party reminded them that it retains the discretionary power to engineer all aspects of society, which means putting tech companies in their place.
There might be something to be said for this sort of approach. What if, say, the US government had responded to the 2008 financial crisis by reshaping Wall Streetâs risk management culture rather than engaging in the endless negotiations that yielded a 2,300-page statute that nobody understands? But Xiâs attempt to achieve cultural change has left people disgruntled and whole industries disfigured.
The trouble with Xi Jinping is that he is perhaps 60 percent correct on everything. Heâs driving toward a usually admirable long-term goal. But in the name of achieving change, the engineering state delivers such beatings on people or industries that they are unable to pick themselves back up again. Even if Xiâs judgments are right, his brute-force solutions reliably worsen things. Does big tech have too much power? Fine, but stomping out their businesses has traumatized entrepreneurs. Are housing developers taking on too much debt? Yes, but driving many of them toward default subsequently triggered a collapse in homebuyer confidence, prolonging a property slump. Does the government need to rein in corruption? Definitely, but Xi has terrorized the bureaucracy to the point of paralysis.
Engineers are bad at several things. Theyâre not very good, for example, at producing appealing cultural products.
During the height of the pandemic, Xi declared that China needs to become more âloveable.â The countryâs image had suffered as people around the world blamed China for the spread of the virus.