Xi Jinping’s End Game

How long will the policies regarding China’s technology sector continue? What are Xi Jinping’s long-term goals? The policies have been an effective populist campaign legitimizing Xi Jinping’s rule. They have reduced the political power of a group of private companies, but have failed to deliver much in the way of improving equality or economic efficiency. This chapter argues that Xi Jinping has limited capacity to make fundamental changes to China due to structural economic constraints. Major changes in the functioning of the underlying economy, including allocation of capital to the state system, repression of consumer income, and finding new sources of economic growth, will be difficult to achieve. The chapter also discusses the importance of Hong Kong as a replacement for the U.S. capital markets and notes that decoupling will likely accelerate. It concludes by asserting that the cultural and ideological aspects of the technology campaign are likely to continue due to the character of Xi Jinping himself.