The Shrinking Moat: Why China’s Private Firms Fear Their Own Local Governments

China’s private-sector entrepreneurs have long known that their greatest commercial risk is political, not commercial. Yet over the past two years that risk has begun to mutate: what was once an occasional skirmish with red tape now resembles a systemic hunt for cash by cash-strapped local governments, colliding head-on with Beijing’s effort to recentralise power. Understanding that collision—and whether new laws can cushion the impact—has become essential to reading China’s next economic chapter.