The repression is clearly aimed at restoring absolute state control over education, on the Jesuit principle that if you have the child, you have the man. It also aims to ward off the bacillus of subversive Western ideology. The official document severely restricts foreigners’ access to the sector, whether through mergers, trusts or franchise chains.
Xi’s war on overseas listing goals is in part a response to the U.S. Holding Foreign Companies Accountable Act, which requires careful consideration of directors’ political and military ties. “They don’t want US regulators to dig into the books of these companies, which are state secrets,” said George Magnus, of the China Center at the University of Oxford.
But it’s also an attempt to force Chinese companies to register with Hong Kong, which is gradually being stripped of its rule of law protections. To the extent that it works, it accelerates China’s retreat into semi-autarky, before the country has reached its full technological take-off or nears genuine parity with the West.
China is struggling to make advanced semiconductor chips – the sine qua non of artificial intelligence and digital supremacy – should have given Xi pause. But pride took hold. He endorsed the widely held idea by party cadres that America suffered a systemic heart attack with the 2008 banking crash – almost akin to the sudden collapse of the Soviet Union in 1991 – and finds himself now in a deep structural crisis.
He sees a particularly favorable alignment of forces, a window of opportunity to try to gain global ascendancy before India becomes too strong and China experiences its own demographic crisis.
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