China’s recent crackdown on overseas firms has revealed that President Xi Jinping prioritizes security over economic growth. In a move to dispel any uncertainty, individuals familiar with the situation have disclosed that state-security czar Chen Yixin has been entrusted with the responsibility.
This campaign, which has included targeted actions against U.S. due-diligence firms’ Chinese offices and the interrogation of Bain consulting firm employees, has sent shockwaves throughout the global business community, Wall Street Journal reported.
As reports of investigations surfaced in recent weeks, some international business leaders were taken aback by the absence of any effort from Xi’s administration to reassure foreign investors, a practice observed in the past.
Traditionally, technocrats like Liu He, Xi’s long-time economic advisor who played a role in negotiating a trade agreement with the Trump administration, would step forward to address such concerns.
However, this time, economic officials remained silent as the crackdown intensified.
Written by staff