China Slowly Reverting Toward a Centrally Planned Economy

China is tightening Communist Party control over private capital and corporate decision-making as it moves deeper toward centralized economic planning, according to new regulations and laws cited by the article. Speaking July 1 at a ceremony marking the CCP’s 105th anniversary, Xi Jinping tied the party’s legitimacy to overthrowing past “mountains,” while the legal sequence began tightening state oversight one year into legislative efforts. The State Council finalized its broadest peacetime claim over private capital leaving the country: an outbound investment regulation approved April 17, effective July 1, requiring joint security review by the National Development and Reform Commission and the Ministry of Commerce for deals that “affect or may affect national security.” The review can cover asset sales, equity transfers, offshore restructurings, exits, and control changes tied to sensitive technologies or data. Companion decrees—Decree 834 on supply chain security and Decree 835 on countering foreign extraterritorial jurisdiction—took effect March 31 and April 7 respectively, with no compliance grace period.