The following is from the highly insightful blog, "Of Two Minds"
"A third factor emerged after 30 years of touting technology and speculation: the power of Chinese Big Tech and financiers began encroaching on the control of the Communist Party.
All three factors inflated a debt-asset-speculative bubble of profound proportions, and President Xi grasped what the clueless Federal Reserve and other western central banks have not: Either pop the bubble when you still have some control over it or let it expand and pop when you've lost all control.
In systems terms, when risk and fragility reach unstable levels in tightly-bound systems, there's no controlling the supernova-like implosion of the system.
Xi observed the skyrocketing power of Big Tech, moral-hazard-incentivized financiers and cryptocurrencies and concluded that the state must move decisively to crush these rivals, regardless of cost. This separates China from the American state, which is incapable of enforcing any sacrifices, limits or costs on the parasitic elite which dominates its economy and political order.
Xi saw the danger of Big Tech and financiers being able to buy whatever influence they needed from corrupt CCP and state officials, and he realized that this is the crucial moment in history: either crush Big Tech and the financiers / speculators or risk losing control to their interests.
Control is something the CCP and Xi want to retain, regardless of the cost to the nouveaux riche, the parasitic elites, the aspirational middle class and even the Party regulars who have supped too often and too gloriously at the corruption / moral hazard trough."
https://www.oftwominds.com/blogsept21/g ... a9-21.html
The point made by the author is that the CCP sees the Nouveaux Riche elite in China as a threat, and that they need to be quashed to allow the CCP to retain domestic control. This would mean that the CCP will actually ENABLE an economic downturn to crush these people, then move to a war footing (and war) to deflect blame for the downturn, thereby taking out both domestic rivals in step one, then foreign rivals in step two.
This means that the CCP isn't going to wait for a market downturn, they may actually INITIATE it, so they can take out the domestic rivals.
The problem is that both an economic downturn (as well as war) at this point is a giant Pandora's box. The idea that they can somehow "control" it or mitigate its effects is beyond hubris. Which, as has been pointed out here, is the big problem with the CCP.