Tech crackdown, demand-side reform

The recent Politburo meeting underscored that reining in the tech sector's has become a key priority for China’s leadership. The economic consequences of this crackdown are far from clear-cut. But given the tech’s sector role as an important growth engine, the risks appear skewed to the downside. On a more positive note, policymakers also appear to be putting greater emphasis on the need to address the structural factors holding back consumption in China.