Washington/Beijing – Ron Insana, an analyst from the United States, has warned that the crackdown on its own big companies by the Chinese ruling communist regime could undermine China’s position as an economic superpower. China is the world’s second-largest economy, and the ruling communist regime is threatening the “business model” that led to its rise, Insana said. Stocks of Chinese companies worldwide have plummeted, hitting the top four companies with more than 300 billion in just one month.
In his article on the CNBC website, Ron Insana, a former manager and journalist at the hedge fund, has fired a salvo of criticism at the Chinese regime‘s actions. The action taken by the ruling communist regime will lead to an exodus of foreign capital from China, Insana warned. Over the past few decades, millions of Chinese people have been lifted out of poverty, improving their living standards. Large Chinese companies, their performance, and investment in the stock market are also factors responsible for the change. If this is hit, it will shake the confidence of Chinese citizens, US analysts have pointed out.