China’s private sector is encountering the harshest reality in the last four decades. This Tuesday evening (15th), the General Office of the Communist Party of China (CPC) Central Committee issued “Opinions on Strengthening the United Front Work of the Private Economy in the New Era,” emphasizing the need to take Xi Jinping’s Thought on Socialism with Chinese Characteristics for a New Era as a guide to comprehensively improve the CPC’s ability to conduct united front work on the private economy.
The “Opinions” state at the outset that all regions and departments are required to earnestly implement the work in practical terms, targeting not only private enterprises in mainland China, but also Hong Kong and Macao business people who have invested in the mainland.
The document stresses the need for “united front” but actually control of the private economy. The document calls for private entrepreneurs to remain steadfast in listening to and following the Party, from talent training and selection to business direction, all under the guidance of the Party.
The opinion, issued by the United Front Work Department of the CPC Central Committee, calls for adherence to the CPC’s leadership of the united front work on the private economy, further strengthening the CPC’s leadership and cohesion of private economic figures, and continuously enhancing the political consensus of private economic figures to follow the path of socialism with Chinese characteristics under the leadership of the CPC.
In an interview with Radio Free Asia, Feng Zhi, an independent scholar of literature and history in Handan, Hebei province, said the document was clearly intended to strengthen control over private enterprises, and the language used was harsh: “Definitely control is no longer to rally (private enterprises), and in fact the private economy has never needed to be rallied by the Communist Party. It is definitely to control, to bring the private economy into the national chess game. Establish the authority of the Party to guide and coordinate such a structure, and then use the Federation of Industry and Commerce and the Chamber of Commerce as the two forms of organization for the private economy.”
Private Economists Subject to CCP Control
The Opinions, issued by the United Front Work Department of the Communist Party of China (CPC) Central Committee, will be promoted by CPC organizations across the country, and private economic figures established by non-Party members will also be included in the supervision of the authorities in the future. For example, the Opinions propose to strengthen the ideological and political construction of private economic figures, consolidate and expand political consensus, deepen education in ideals and beliefs, and intensify ideological guidance. The Opinions make it clear that it is necessary to adhere to the principle of Party-controlled talents, and build a team of high-quality, responsible representatives of the private sector of the economy. Strengthen education and training, standardize political arrangements, and increase the efforts to train the younger generation.
Back to the planned economy must first solve the private economy
In other words, all non-Communist Party members are subject to the leadership of the CCP. This means that in the future China will have only one form of economy, says scholar Feng Zhi: “Use this form to bring the private economy under control and complete their internal circular economy, in order to prevent private economic people from becoming partisans and forming forces outside the party, and if he wants to return to the planned economy, he must first solve the problem of the private economy, which is now beginning to be solved. “
This working document of the United Front Work Department of the Communist Party of China (CPC) is the first document on the united front work in the private economy since China’s “reform and opening up”. The document contains many directive words such as “politics”, “promotion” and “guidance”. It highlights the “efficient coordination” between the private sector and the leadership of the CCP.
Since the outbreak of the U.S.-China trade war, China’s economic environment has been deteriorating, such as in October 2018, the so-called “private economy departure theory”, saying that the private economy has completed its mission, to exit the stage of history; some people proposed “new public-private partnership”, etc., November On January 1, Xi Jinping, General Secretary of the Communist Party of China (CPC), delivered a speech at a symposium on private enterprises, reiterating that “the non-public ownership economy is an important part of China’s socialist market economy”. He also said that the 18th National Congress of the Communist Party of China (CPC) further stated that “we will not waver in encouraging, supporting and guiding the development of the non-publicly-owned economy, and will ensure that all kinds of economies under all kinds of ownership will have equal access to the factors of production, fair participation in market competition, and equal protection under the law”.
In the past few years, the company has been able to provide a wide range of services to its customers, including the development of a new product line, a new product line, and a new product line. The so-called private enterprises to strengthen united front, you see which said to strengthen what patriotism, socialism education, strengthen the party’s control of talent, will be put into practice. In the case of this notice, it is how to control private enterprises.”
The United Front Work Department’s “Opinion” applies to Hong Kong and Macao enterprises
The United Front Work Department of the Communist Party of China (CPC) extended its scope of work to Hong Kong and Macao investors in the Mainland. The “Opinions” said, to face all private enterprises and private economic people, the target mainly includes the main investors of private enterprises, the actual controller, the main operators of private enterprises holding shares, private investment institutions, natural shareholders of the National People’s Congress, private enterprises and private economic people as the main business sector in the field of social organizations, the main person in charge of the relevant social service institutions, private intermediaries. Partners, Hong Kong and Macao business people who have invested in the mainland, representative self-employed persons.
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