How Xi's Crackdown On Business Has Maoist Roots

To many western investors, China under president Xi Jinping is a tough nut to crack

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While Chinese leaders insist that they welcome foreign investment, the ruling party's extension of control to companies, with crackdowns on domestic tech giants and more recently the "anti-spying" raids on consulting firms, including America's blue-chip Bain & Company, are puzzling to the outside world.

Chris Marquis, author and professor of Chinese management at the University of Cambridge, believes that part of the explanation lies in the ruling party's ideology. He says one must "dig into the Maoist roots in Chinese institutions and political economy to try to understand ideas that Xi has".

Marquis has studied entrepreneurs, listed companies and officials in China, and found that Mao Zedong's ideology, campaigns and institutions have a deep influence on their thinking.