This bit in particular is very telling:

In MSCI’s ACWI ESG Leaders Index, Alibaba and Tencent are two of the top 10 constituents. In BlackRock’s ESG Aware emerging market exchange-traded fund, Chinese companies represent a third of total investments. These indices have effectively forced hundreds of billions of dollars belonging to US investors into Chinese companies whose corporate governance does not meet the required standard — power and accountability is now exercised by one man who is not accountable to any international authority.

The “international authority” here refers to capitalists who now own pretty much all the other major economies. These people are terrified of the example that China is setting.

I also love this bit

Xi does not understand how markets operate. As a consequence, the sell-off was allowed to go too far.

Pretty sure Xi and CPC understand how markets work, and likely better than most capitalists. These people have convinced themselves that the market can dictate what happens to the economy, and in economies run by finance capital that is indeed the case. However, Chinese economy is not run by the markets, and markets crashing have very little impact on it. In fact, people who are most impacted are foreign investors, so the losses are largely externalized.

Soros wants foreign investors to punish China by pulling out their investments, but that can’t happen either because there is still money to be made. The reality is that everybody knows the market shock is temporary and the stocks will keep climbing over long term. Vast majority of investors aren’t ideologically driven, and will keep putting money into Chinese market.

What China is doing here is absolutely masterful.