Well that's good for everyone else competing with China. It will slow innovation. Imagine if you had to worry about doing something that pissed off someone on your companies "Communist Committee" (or whatever the article called them). Yes, in general a company in China has to be careful how it treads with respect to the national communist party, but now they'll have to worry about the lower level people that are inside their company. And those "party" people will have ambitions, and when the company does good, they will do good. BUT, those (at least some of those) same party people will be risk averse, probably a lot more risk averse than a typical tech innovator. Think about politicians here in the US and how long it takes them to embrace things that are already popular with the general public (marijuana legalization for example). That's what these companies will be up against, and it will slow them down.