One of those institutional changes is taking place in the financial system. To execute a deleveraging campaign that began around 2016, Beijing created a new “super regulator” for the financial system while relying on an ongoing anti-corruption campaign to overcome resistance to reform. Weighed down by debt after the global financial crisis, China’s financial system was in bad shape. But predictions of an imminent catastrophe were always off the mark, in large part because virtually all Chinese debt is internal, walled off by capital controls. In this chapter, Dinny McMahon details the methodical and gradualist strategy that Beijing has adopted to “clean up” its financial sector, resulting in progress that has outdone expectations.