Xi’s Bottom Line on Debt and the Troublesome Tycoons

President Xi Jinping’s attitude toward misbehaving officials is unequivocal. His anti-corruption campaign is heavy-handed and all-encompassing. Bureaucrats are banned from taking lucrative private-sector jobs upon leaving government posts, a practice known as “revolving door.” Elderly officials who face bribery allegations are dragged back out of retirement and expected to face court charges. Even dereliction of duty has become a criminal offense.

But what does Xi think about private-sector tycoons who have created havoc in the Chinese economy? Granted, his regulatory crackdowns have shaved billions of dollars off billionaires’ wealth. But many have retained their freedom of movement, even as their businesses’ bond defaults have practically closed China Inc.’s access to offshore dollar funding, and their debt build-ups threaten the country’s financial system.