Introduction
Social media limitations appear to be an attempt to limit the opinions of some of China’s most well-known commentators over the nation’s troubled stock markets and economy.
Based on the account pages CNN examined, at least six experts are unable to add fresh content or acquire followers on key social networking sites.
Among them is Liu Jipeng, a government counselor to China, who recently advised the nation’s investors to stay out of the stock market. Users may no longer follow his accounts on social media, as he hasn’t written anything since early December.
CNN encountered the following message while attempting to follow his accounts on the news aggregator app Toutiao and the short-video app Douyin: “This user can’t be followed due to violations of the platform’s rules.”
Critics have been known to be muted on Chinese social media. These business specialists were known to express frank opinions about the status of the second-largest economy in the world before their curtailment.
CNN’s request for comments was not answered by any of the impacted experts. Additionally, the websites they utilized, like as Toutiao, Douyin, and Weibo, did not reply to queries from CNN regarding the restrictions’ rationale.
This occurred concurrently with a significant meeting that President Xi Jinping attended earlier this month to talk about economic goals and strategies for the upcoming year. The ruling Communist Party decided to “strengthen economic propaganda and public opinion guidance and promote a positive narrative about the bright prospects of the Chinese economy,” according to a readout of the meeting that was made public last week.
A body that has grown in significance over Xi’s 11 years in office, the national security ministry, has also increased its attempts to stifle negative predictions about China’s economic future, particularly from people with “ulterior motives.” It said last week in a statement that disparaging the status of the economy would upset investor sentiment, stunt economic expansion, and compromise security.
“The leadership of Xi Jinping is incompetent and the economy is in a tailspin. Therefore, the reaction is to “kill the messenger that brings the good news” or just to silence them, according to Willy Lam, senior fellow at the Jamestown Foundation, a think tank with headquarters in Washington.
“Beijing is concerned that more dissidents expressing unfavorable opinions will further erode consumer confidence,” he stated.
Challenges for Investors Chinese business Analysts social media
Making decisions can be difficult for investors who depend on the analysis of these missing professionals. The abrupt gap in knowledge raises questions about the completeness and accuracy of the information accessible to make wise investment decisions.
“The Chinese government’s increased control over the narrative around the economy is probably going to have the reverse impact [of drawing in foreign investment], in my opinion. Tsang stated that rather than providing investors with comfort, it raises red flags.
Data opacity concerns have already hurt the economy.
CNN calculated November’s total foreign investment into China based on data given by the Ministry of Commerce on Tuesday and found that it decreased by 19.5% to 53.3 billion yuan ($7.5 billion) from the same month last year.
Lam stated, “We are witnessing a vicious cycle.” “International businesses will only visit or remain in China if they have access to trustworthy data regarding the country’s economy, pricing trends, jobless rates, and general economic decision-making.
However, some observers believe Beijing may tighten communication controls even more, particularly if the economy continues to deteriorate to the point where it is seen as jeopardizing the existence of the regime.
“The party will do whatever they have to do to stay in power,” stated Frank Xie, a University of South Carolina Aiken business professor.
“It has become second nature for them to control the expectation, the opinion, and the media to hide the real nature of the economy,” he continued.
Calls for Transparency
The current situation highlights the necessity for increased openness in the Chinese economic environment. In the sector, there is a recurring demand for transparency, accountability, and a safe space where analysts can voice their opinions without fear of backlash.
In the guise of national security, Beijing has also instituted a broad crackdown on foreign consulting and due diligence firms, such as Mintz Group, Bain & Co., and Capvision, which has sent shivers down the spine of the world business community.
According to observers, this demonstrates Beijing’s vulnerability to the deteriorating economy.
Referring to the CEWC readout, Lam remarked, “It is the first time in recent memory that a top-level economic conference [issued] a call for strengthening positive… propaganda.”
He continued, “This also reflects Xi and his top colleagues’ fear that national security might be affected if the economy continues to tank.”
According to Tsang, there can be occasions when the Chinese government must step in to refute unfavorable stories about the state of the economy.
Negative perceptions of the economy “can tip the balance and drive the economy down further when it is weak and underperforming,” the speaker stated.
“Such intervention reflects a government that perceives the economy as weak and/or headed in the wrong direction, or that it feels vulnerable.”
Conclusion
There are complex ramifications for information flow, investment decision-making, and international views associated with the removal of well-known Chinese business analysts from social media. Maintaining awareness and pushing for openness becomes critical when the environment changes further. The nuances of this mysterious trend will only become clear with time, and the international community will need to move cautiously and nimbly through this changing narrative.