Downfall of China's 'Socialist System': A Cautionary Tale

On February 17, during a meeting with prominent executives from large Chinese tech companies in the private sector, President Xi Jinping’s speech indicated that the nation’s economic downturn has compelled authorities to cease their campaign against the private sector in China . This shift signifies a significant failure of President Xi’s concept of "the socialist system with Chinese characteristics," wherein socialism was meant to oversee and direct the expansion of private capital within the country. Notably, besides President Xi himself, the main highlight of the gathering was Jack Ma, one of the co-founders of Alibaba and the richest business magnate in China. He had been out of the spotlight for several months following his remarks criticizing Chinese regulators and financial systems during an event in Shanghai on October 2020. Other prominent figures at this meeting included the CEOs of BYD—an electric vehicle company—and Tencent, owner of WeChat; along with the …