China's Transformation: How Beijing's Control Affects Of Business.

As we explained in the first part of the recent series of events in China, these actions are part of President Xi Jinping's main political initiative known as "Joint Prosperity." This expression is not new in China. 

The sharp increase in the use of the term during a year in which the Chinese Communist Party (CCP) also celebrated its 100th anniversary was seen as a signal that it was now at the center of government policy. Key to the co-prosperity policy is Beijing's efforts to narrow the vast wealth gap between the nation's most affluent and poorest citizens.

This is a problem that some say will threaten the rise of the world's second-largest economy and pose an existential threat to the CCP. Some see the recent moves as a way to rein in the billionaire owners of some of China's biggest companies, rather than giving customers and workers a more influential voice over how their businesses operate and how their income is distributed.

"Local movement with global impact"

Beijing's growing rhetoric in recent months has prompted action against a dizzying number of Chinese business interests. Everything from insurance agents, private tutoring companies, real estate developers, and even companies planning to sell stock in the United States has been scrutinized.

The tech industry, in particular, has suffered several actions against them, including raids on e-commerce companies, online financial services, social media platforms, gaming companies, cloud computing providers, mobility apps and miners, and cryptocurrency exchanges.

These measures, of course, had a significant impact on the Chinese economy and society, and their effects were felt all over the world. The country has long been considered a global factory and an essential engine of global economic growth.

The uncertainty of business regulation in China now makes it difficult for foreign companies to decide about potential investments. Another view is that although the implementation of the new rules will change in the short term, the revised regulatory framework will remove uncertainty for a long time.

Destroy the mighty ant

Before it became clear that Xi's co-prosperity policy was to reshape China's economy, Beijing unleashed a shocking and astonishing demonstration of the might of its weapons. Less than a year ago, Jack Ma, the billionaire founder of Alibaba, known for his elegant appearances at spectacular corporate events, was on the verge of controlling the debut of the world's largest stock market.

The IPO of Ant Group, Alibaba's financial subsidiary and owner of China's largest digital payments platform Alipay, had to raise $34.4 billion (£25.4 billion). That will make Mr. Ma Asia became the richest man, but then he gave a controversial speech criticizing China's financial system. Within days of the speech, the share sale was canceled, and the former Mr. Ma was not seen again in public until January of the following year.