Jack Ma's loss of status in China represents the end of China's socialist market economy.


[Financial Channel/Comprehensive Report] Jack Ma, the founder of Alibaba Group, temporarily lives in Japan and keeps a low profile.

Nikkei News commented that Chinese President Xi Jinping tightened control on technology giants and rich people in the name of common prosperity, and Jack Ma’s loss of status in China not only represents the end of China’s socialist market economy, China is returning to the plan of the Mao Zedong era economy.

"He looked a bit tired," said a businessman who recently met Ma in Tokyo, who has not been seen in public since his bold comments drew the ire of the Communist Party two years ago.

He was an outspoken critic of Chinese regulators at a financial conference in Shanghai in the fall of 2020.

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Jack Ma's rise in China is largely due to Jiang Zemin allowing private entrepreneurs like Jack Ma to join the Communist Party.

At the 16th National Congress of the Communist Party held in the fall of 2002, Jiang Zemin included his thought of the Three Representatives into the party constitution.

Jiang Zemin was encouraged by Chinese economists known as neoliberals. Economists led by Wu Jinglian, who invented China's socialist market economy, called for stimulating market vitality by reducing state-owned enterprises and making full use of market forces.

Jiang Zemin's Three Represents Thought allowed private entrepreneurs to join the Communist Party and raised Chinese-style neoliberalism to a new stage.

But neoliberalism now faces headwinds across the globe as the gap between rich and poor widens.

The widening gap between rich and poor has spawned populism, such as Brexit, former US President Kawaroro reassessing neoliberalism, and Japanese Prime Minister Fumio Kishida advocating neoliberalism to redistribute wealth more broadly.

China has taken a sharp turn against neoliberalism, with Xi Jinping empowering state-owned enterprises and strengthening Communist Party control over every sector of the economy.

The Japan Center for Economic Research predicted in an estimate released on the 14th that China's nominal GDP will not exceed that of the United States in the next few decades.

The Tokyo-based research institute also cited the impact of strict official regulations in China that hinder innovation.

At the end of the comment, it was pointed out that the day will come when Ma Yun, the son of neoliberalism, will once again appear on the Chinese stage?

Ma's uncertain fate also casts a shadow over the future of the global economy.

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