The libertarian in me thinks also that sometimes, the lax enforcement is just the government’s incompetence and its inability to enforce regulations on everyone, all the time.Ĭhina was once the leading country in crypto mining. Corruption also plays a big role in these relaxations. Every now and then, it has suited the country’s leaders to relax their iron grip on the economy and allow a degree of economic liberty. Another one is just stricter enforcement of regulations that are already in place. A common one is the implementation of a new set of regulations. In many cases, a scapegoat is needed to bring peace during a government crisis. Other times, an influential businessperson becomes too vocal and criticizes the government. Sometimes a random company is deemed incompliant by some regulatory agency. The reasons are different, but the story stays the same. Nowadays, any online search about the Chinese economy will show results that include the word “crackdown.” There is a pattern of occasional crackdowns on big sectors, specific companies, and even individuals. Once the crackdown happened, things would cool down and gradually build up again to reach a climax, in which another crackdown would happen.Ĭrackdowns are a well-known theme in the Chinese economy as well. These would mostly be drug-related crackdowns, but other reasons such as prostitution would make the list. The reason? Police had decided to crack down on these nightclubs. In fact, all of the city’s clubs would be closed. True story: Many weekends during my studies in Changzhou, China, my friends and I would go out to have a drink only to realize that our favorite bar was not open that night.
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