Does Xi knows how better to control tech giants than Trump?
Introduction
The statement that Xi Jinping understood the potential threat of business titans to China’s political system, unlike Donald Trump, is partially accurate but requires some nuance.
History
Xi Jinping has indeed taken a more cautious and controlling approach towards China’s business elite compared to his predecessors. Since coming to power in 2012, Xi has implemented policies and actions that demonstrate his awareness of the potential influence wealthy businesspeople could wield over China’s political landscape.
Xi’s Approach to Business Elites
Tightening Control: Xi has reversed some of the previous efforts to co-opt private actors into the Chinese Communist Party (CCP). Instead of “co-optation,” Xi prefers a more disciplined approach, emphasizing Leninist organizational principles and party discipline.
Crackdown on Tech Giants
In 2021, Xi ordered a far-reaching crackdown on China’s tech industry and the private sector. This included banning entire industries, instituting onerous cybersecurity review requirements, and tightening regulatory control over tech giants like Tencent and Didi.
Common Prosperity Agenda
Xi announced a “common prosperity” agenda with egalitarian rhetoric, signaling a potential return to more leftist economic policies. This move was seen as an effort to address growing wealth inequality and reassert party control over the economy.
Trump’s Approach
In contrast, Donald Trump’s relationship with business elites has been more complex and less consistently adversarial:
Business Background
Trump himself comes from a business background and has maintained close ties with various business leaders throughout his presidency.
Transactional Approach
Trump’s approach to both domestic and international affairs, including relations with China, has been characterized as more transactional and deal-oriented rather than ideological.
Relationship with Tech Leaders
While Trump had conflicts with some tech companies, he also maintained relationships with figures like Elon Musk, whose business interests are deeply tied to China.
Conclusion
While Xi Jinping has demonstrated a clear understanding of the potential threat business titans could pose to the CCP’s control and has taken decisive action to curb their influence, Trump’s approach has been less consistent and more focused on individual relationships and deals. This difference reflects the contrasting political systems and priorities of the two leaders, with Xi prioritizing party control and Trump often favoring business interests and personal relationships.
However, it’s important to note that both leaders have shown a willingness to intervene in the economy and challenge business interests when it aligns with their political goals.
The key difference lies in the systematic and ideological nature of Xi’s approach compared to Trump’s more ad hoc and personalized style of governance.
