As China grapples with a prolonged economic slowdown, the Chinese Communist Party (CCP) is increasingly prioritizing political security and social control over economic growth, marking a significant shift from the development-focused model that defined much of the country’s rise over the past two decades.
While Beijing continues to publicly emphasize economic growth targets, recent policy measures, regulatory changes, and regime priorities suggest that national security considerations are taking precedence over market expansion, private-sector development, and international engagement, according to analysts who spoke to The Epoch Times.
The shift has become more visible in recent months as the regime expanded restrictions affecting technology firms, overseas investment, information dissemination, the military, and private businesses.
‘Focused on Catching Spies’
Since Chinese leader Xi Jinping took power in 2012, references to “security” have become increasingly prominent throughout China’s policy framework. National security, economic security, financial security, food security, energy security, supply chain security, data security, and social stability have gradually been incorporated into a unified governance approach.Recent developments suggest that trend is continuing.
A retired professor in Anhui Province told the publication he believes the regime’s priorities have shifted decisively.
“All the economic indicators show that they are no longer focused on developing the economy,” he said. “Instead, they are focused on catching spies and addressing what they call destabilizing factors. In the CCP’s view, politics overrides everything else. Compared with political priorities, economic development has become secondary.”
For more than two decades, China’s economic model relied heavily on property development, infrastructure spending, export growth, urbanization, and private-sector expansion. Rapid economic growth helped raise living standards and served as a key source of political legitimacy for the ruling party.
According to the retired professor, however, the policy direction began changing years ago and accelerated after the constitutional amendments adopted during the CCP’s 19th Party Congress era, which removed the CCP leader’s term limits and consolidated Xi’s authority.
“The CCP increasingly used mergers, acquisitions, and Party organizations within private firms to expand its influence over businesses,” he said. “After the pandemic lockdowns, pressure on larger private enterprises intensified.”
The retired professor alleged that the regime has used tax investigations and regulatory pressure to increase state influence over successful private companies.
On June 1, China’s State Council released new regulations governing outbound investment, tightening controls over the transfer of capital, technology, data, and services abroad, according to Chinese state media Xinhua News Agency via the Ministry of Commerce. The next day, the Cyberspace Administration of China introduced new rules governing cross-platform online content distribution, bringing additional forms of information sharing under regulatory scrutiny, according to Chinese state media People’s Daily.
The State Council’s new outbound investment regulations, scheduled to take effect on July 1, provide clear examples of Beijing’s security-focused approach.
Under the rules, Chinese investors engaging in overseas investments are prohibited from exporting or using goods, technologies, services, and related data that are banned from export. Restricted technologies, services, and data may not be transferred abroad without government approval.
The regulations also prohibit the transfer of controlled technologies and data through channels such as overseas employment, technical guidance, personnel assignments, and training programs conducted abroad.
‘Preserving the Regime’
An independent scholar in Shanxi Province told The Epoch Times he believes China’s local governments are increasingly focused on maintaining political stability.“They talk about grassroots governance as if it is for the benefit of ordinary people, but in reality it is about strengthening control and preserving the regime,” he said.
According to the scholar, local officials are being tasked with implementing increasingly detailed social-management systems, including stability-maintenance programs, accountability mechanisms, and early-warning networks designed to identify potential sources of social unrest.
“The responsibilities assigned to grassroots officials are becoming more specific, and their performance is regularly evaluated,” he said.
The scholar argued that China’s leadership now treats economic management as part of a broader security framework.
“When they deal with economic issues, the first question is no longer whether a policy improves economic efficiency,” he said. “The question is whether it can be controlled and whether it poses a risk to political stability.”
He warned that such an approach could deepen tensions between the state and private entrepreneurs at a time when China’s economy continues to face weak consumer demand, a prolonged property downturn, and growing local government debt burdens.
