Editor’s note for Monday, August 2, 2021

My thoughts today:

First, a correction: Last week, I mentioned pro-Beijing commentator “Chairman Rabbit” but used incorrect pinyin for his real name, which is Rén Yì 任意 (the first character, as a name, is not pronounced Rèn).

If you did not read his piece on the Chinese government crackdown on tech and education companies last week, here it is again. Ren explains, from a sympathetic point of view, what the government is doing by going after so many companies: essentially aiming to correct imbalances in the economy and social ills while fostering the development of strategically important technologies (i.e. microchips, not social networks).

This is just business as normal and nothing to worry about, argues billionaire hedge fund investor Ray Dalio. But there are fewer and fewer people who hold this view. Stephen S. Roach, former chairman of Morgan Stanley Asia, and a self-described “congenital optimist [on the Chinese economy] for over 25 years” better reflects the way many observers outside China are talking: “The point is that, for whatever reason, Chinese authorities are now using the full force of regulation to strangle the business models and financing capacity of the economy’s most dynamic sector. “

For more on the Big Tech Crackdown, see our new guide.

Beijing has announced new COVID-19 restrictions: “Residents are advised not to leave Beijing, except for essential purposes,” reports That’s Beijing. “Those who leave or travel to Beijing must have a negative COVID-19-test result issued within 48 hours of departure. Travelers must also show a green health code.”

Our word of the day is criminally detained on suspicion of rape (因涉嫌强奸罪，刑事拘留 yīn shèxián qiángjiān zuì, xíngshì jūliú).

—Jeremy Goldkorn, Editor-in-Chief