The CCP Absorbs China’s Private Sector: Capitalism with Party Characteristics
A joint report of the Hoover Institution and the Asia Society Center on U.S.-China Relations Hoover visiting fellow Matthew Johnson argues that headline-grabbing crackdowns on some of the best-known firms in the People’s Republic of China (PRC) are not isolated phenomena. Rather, the CCP has launched a massive structural undertaking to harness private capital to restore the Party’s political authority across China’s economic landscape, while preserving the technology and capital flows necessary for Xi Jinping’s ambition of making the PRC the world’s dominant superpower. This report dissects how foreign investors, businesses, and governments must grapple with new risks in a PRC economic environment where state objectives come first and national security underpins everything.