Today, unlike the time of the Cultural Revolution 30 years ago, one's own future comes first. And that future is in the vibrant market sector, not in the stagnant state sector. But his increasingly harsh crackdown on dissidents is a sign of weakness, not of strength. The truth is, the Communist Party of China is weaker now than at any time since 1949. The economic liberalization that began in 1978 has given more power to the people, and, unintentionally, undercut the Party's power.
People have little faith in industrial enterprises or banks run by the state.
They know that, regardless of official rhetoric to the contrary, government ownership means party control. But that authoritarian approach to economic organization has been a giant failure for all to see. The dismal condition of SOEs, the deterioration of state budgetary revenues, and the fragile condition of China's banking sector threaten the very existence of the party. That is why China's leaders are nervous. The decrease in budgetary revenues from the shrinking state sector has been dramatic.