China's biggest private companies are in chaos. It's all part of Beijing's plan

China's crackdown on private enterprise has wiped out more than $1.2 trillion in market value for many powerful Chinese companies and stoked fears about the future of innovation in the world's second largest economy. But the end goal of Beijing's aggressive bid for control isn't about creating chaos. The government wants to make clear to its corporate champions that tapping capitalist markets is fine — as long as it is on the ruling Chinese Communist Party's terms. The heavy selling has accelerated in recent months as Chinese authorities slap companies with fines, ban apps from stores and demand that some firms completely overhaul their businesses.

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