News Analysis As China struggles with a slowing rate of growth and unrestrained economic forces, the Chinese Communist Party (CCP) has continued its effort to consolidate direct control over capital allocation and markets. The tightening regulatory control is representative of the CCP’s recent drive to increase state intervention into markets. The People’s Bank of China announced on Jan. 20 that it would be lowering interest rates, ostensibly to help enervate the country’s flagging property market. At the same time that these rate increases will be occurring, privately owned property giant China Evergrande Group continues to default on its debt. Impending legal action by the company’s international bondholders reflect poorly on the Chinese property market, and the CCP has previously compelled state-backed firms to buy Evergrande assets. The real estate market is an enormous—and critical—segment of the country’s economy. This comes at an inopportune time for Chinese leader Xi Jinping. Recent …