The "Crackdown" started with Alibaba due to Ant Financial, then it moved to online gaming which affect Tencent, and eventually, the claw is reached out to private tuition followed by property. The most recent will be wealth equality. There are tons of rumors and speculations on the reason why there is this huge "Crackdown". However, I could only think of 1 reason. The reason is simply - Workforce.
China has announced and allowed couples to have 3 children which is probably a huge policy change for them. So what has this got to do with "Crackdown"? I believed it is because that people in China simply don't dare to have children. Life is already difficult for them with the 996 work culture and they barely have enough to spend. Having even a single child, it will make their life even tougher as it will mean they will need more money.
The "Laying Flat" movement which was a trend a few months ago was almost killed off on their internet to prevent people from getting encouraged into it. Technically, it is possible and easier for people in China to join the "Laying Flat" movement. By moving back to their hometown in a rural area, they would be able to survive for the rest of their life if they don't have many materials needs. They could just stay at home, play games, do some simple farming and that is pretty much it.
So why is the "Laying Flat" movement popular?
We must understand that regardless of race, religion, or nationality, humans always live on HOPE. This is why even a criminal sentenced to life imprisonment will get the chance to get parole. Without HOPE, a human being is simply a walking zombie performing their day-to-day tasks to sustain the environment. If you have ever work in China before or a simple "exchange" program, you will know how competitive it is. Without good qualifications, good networks, or good skills, there is almost no chance you get hired. Even after getting hired, you will need to constantly out-perform yourself and prove to your boss why you are worth keeping. If you are thinking of starting a small business? The rich people can easily open a few businesses with similar models as you and get you out of the game via price war. So seeing that there is almost no HOPE of moving up the Social Mobility Ladder, why will anyone want to work hard?
So why is it bad till it leads to a Crackdown?
With people starting the "Laying Flat" movement, there will be fewer workers - be it blue-collar, white-collar, or whatever collar there is. Without people working, the productivity gets lesser and your unemployment rate goes up.
So how does the Crackdown helps?
I believed that the moves are now to let citizens feel that there is hope to get rich. They are not in a rat race and everybody will have their chance to climb up a social mobility ladder. Family not rich to send kids for private tuition? Don't worry, private tuition is not allowed. Property is too expensive, having kids will be a burden, don't worry the Country will stabilize it for you.
Basically, the message sent out is rather positive if I am a simple citizen in China. it feels as though the country is helping me and giving me hope to move up. This is just my 2cents and views.
Don't flame me. Cheers.