WASHINGTON—China has escalated its regulatory crackdown on its private sector, sending shockwaves across the global markets. The move, which wiped out more than $765 billion of value from U.S.-listed Chinese companies in the past few months, sends a stark message to dozens of domestic firms that seek to tap into U.S. capital markets. Beijing’s crackdown on Chinese firms is growing by the day, with private education companies becoming the latest target. China unveiled last weekend a sweeping overhaul of its $100 billion education technology sector that banned firms from making profits, raising capital or going public. Fast growing online tutoring companies were among the targets. Share prices of U.S.-listed Chinese companies—TAL Education, Gaotu Techedu, and New Oriental Education—dropped sharply on the news. Each company lost nearly 80 percent in value within days in the New York Stock Exchange. The reform announcement came on the heels of a cybersecurity review of DiDi Chuxing, …