Hard to judge this approach. On one hand, spartan approach to economy of USSR after WWII allowed the growth of 1960-s. On the other hand, it also helped with the collapse of 1980-s. Maybe China's trying to take that into account.

I'd actually argue with the idea that China is doing this intentionally. Maybe it's not due to the centralized planning that tech sector gets smashed - maybe it's a much simpler reason behind that.