What the long-term effects will be: China's ruling class further cement their power at the cost of China's innovation and future growth. Interesting and useful things are made when people able share and consume information. e.g. Jack Ma's US visit exposed him to Yahoo. Ma Huateng was clearly inspired by his exposure to ICQ. The list goes on. The same thing happens in the West but it happens a lot more often since the…
Alternative: Innovation happens within the context of Chinas censorship and political regime. Blocking of entrenched western competitors allows home grown solutions to spring up, and local technological know how to develop faster. Capitalism and innovation turn out to work within the context of an illiberal society just fine. Especially as China avoids the mistake of closing itself off to the rest of the world, but s…
> optimize for political obedience
And put innovation in a grave. Without a gravestone.