That's just plainly not true. Deng Xiaopeng set the country up for orderly succession, and it did work up through Xi Jinping. Hu Jintao and Jiang Zemin both cycled through office without any of the things we associate with authoritarian rulers. There was no execution of your political opponents, after you beat them to office, or afterwards.
The argument has been that China needed a reset badly. Free-for-all capitalism hasn't been so great for most folks in the U.S. either, has it? That has been the justification for the heavy hand of the government during Xi's rule. There's also the argument that Western-style term limits prevent long-term strategic planning.
All of those are really tempting and solid arguments, especially given how corrupt China had become with capitalism-ruling-all, but one really does wonder.
As far as Alibaba goes, it's to my understanding that there are no real alternatives to Alibaba Cloud in China (unless you want to go for a foreign solution like AWS or Azure). It would seem that the current government thinks they can get away with making an example of the company as they see fit. There may be some geopolitical logic to that, because Xi's government seeks to make China more independent after Trump's trade wars, and if you have a big, wealthy internet company drawing in the country's top talent, then that's fewer that's e.g. going towards the semiconductor companies they now seek to bolster.
Now there may have been a "correct" policy solution to this, a la antitrust, but it seems Xi's government prefers to be heavy-handed. For me, that's setting some scary precedents, because as other commenters have said, it isn't clear how succession will be handled going forward, and it may well be brutal.