lørdag 28. august 2021

China’s Communist ‘Common Prosperity’ Campaign

Chinese firms have been strongly encouraged to focus on working for the common prosperity, focusing on social value. Many firms are toeing the line in order to avoid regulatory entanglement down the road. After all, the crackdown on the technology sector in recent months has been mainly geared toward protecting consumers and reducing the sway of large firms.

China remains a Communist nation. This means that, even though China is instituting regulations that are not entirely dissimilar to those in the West, the regulatory environment is much more concentrated and potent than in the United States and Europe, and is in some areas ideologically led. How can investors make sense of this?