China's Crackdown on Capitalism

Crony communism has businesspeople and peasants protesting state interference

Illustration by Harry Campbell for TIME

Rana Graphic

When leaders begin blaming "international hostile forces" for problems at home, it's a sure sign they've got trouble. That's exactly what Chinese President Hu Jintao did recently in a speech, published by a Communist Party magazine, in which he accused outsiders of plotting to "westernize and divide China."

The hard-line rhetoric is likely aimed at diverting attention from a growing list of internal issues, including income inequality, unemployment and discontent over blatant land and money grabs by self-dealing state officials and developers. In the wake of the Arab Spring, which must have scared the daylights out of Beijing, Hu & co....

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