• About
  • Advertise
  • Careers
  • Contact
  • Write for us
No Result
View All Result
Thursday, January 21, 2021
THE MILLENNIAL SOURCE
  • World
  • US
  • Asia
  • Politics
  • Business
  • Profiles
  • Lifestyle
    • Food & Travel
    • Tech & Money
    • Health
    • Entertainment
  • Newsletter
TMS
No Result
View All Result
Home WORLD

China increases its involvement in private business, leading critics to question its motives

byMorgan Phillips
September 27, 2020
in WORLD
Reading Time: 4 minute read
China increases its involvement in private business, leading critics to question its motives

Source: Mikhail Svetlov/Getty Images)

Share on FacebookShare on TwitterShare on Linkedin
Western mainstream media outlets may have misrepresented the initiative, painting a false picture of malicious intent.

On September 15, Chinese President Xi Jinping revealed a set of guidelines to establish greater party control over private businesses, while also offering corporations more support in development given their compliance.

In orders to officials published by the state-owned newspaper, People’s Daily, Xi ordered, “Unify members of the private sector around the party, and do better in promoting the healthy development of the private economy.”

The recent push is in response to China’s growing need for economic prosperity after the significant economic hit from the coronavirus, which caused China’s industrial output to tumble 13.5% at the start of this year, shrinking at its fastest pace in the country’s recorded history.

China’s urban unemployment rate also surged 6.2% in February, displaying some of the worst official figures ever reported by China.

However, China is not the only country experiencing issues following the COVID-19 outbreak. The United States has also become a virus hot spot, with a serious COVID-related economic crisis.

Yet, despite the similar severe economic downturn, the US has railed against the Chinese Communist Party’s increased involvement in big business, calling it a symbol of China’s tightened grip on society rather than an important step toward economic regrowth.

The US even went so far as to push for the ban (or sale) of a popular Chinese-owned social media platform, TikTok, stating that they believe the Chinese government is too intimately involved with the company and was utilizing the app to collect private data on American citizens.

The US’ decision reflects the long-running debate surrounding government involvement in private business.

“It has been an ongoing dilemma about co-optation and ensuring loyalty, while allowing sufficient autonomy to develop a competitive economy,” said Kellee Tsai, a political scientist at the Hong Kong University of Science and Technology, in an interview with The New York Times.

“I think [the guidelines] really reasserts the party’s leadership and authority. I think that’s really the primary message,” Tsai added.

China’s investment in private business

Xi’s announcement highlights the importance of the private sector to China’s economy, establishing the country’s need for businesses in order to counter global economic unpredictability.

Even so, the directives call for companies to build up party organizations, signifying that Communist Party committees will be increasingly present within companies. Smaller private firms will now require a certain number of CCP registered employees, already a standing practice within larger firms.

This move is in alignment with Xi’s support for state-owned enterprises (SOEs) in the country.

The guidelines also call on the CCP’s members to “educate private businesspeople to weaponize their minds with [Xi’s] socialism ideology.”

Western translation

Yet, supporters of the proclamation have implied that Western mainstream media outlets may have misrepresented the initiative, painting a false picture of malicious intent.

“This Plan just codifies the previous activities as normal, and expands them into the smaller companies for alignment,” Capital International Consultant Babak Hafezi. “What we have to see is if this will impact business in general (either strengthen or weaken) in terms of their respective Competitive Advantage.”

Hafezi cited an original, untranslated version of the initiative, pointing to a misinterpretation by Western media outlets.

“The proclamation is an alignment of the Government strategy with those of business,” says Hafezi.

“The Plan requires a number of CCP member[s] registered employees, which was already the norm. If you look at the Top 20 firms within China, they all have CCP members within their leadership. However, this new proclamation will also focus on the small businesses which did not necessarily have CCP members within them,” Hafezi told TMS.

Though some critics fear the implications of the new provisions, Hafezi believes that the strategy is merely an expansion of preexisting laws.

Have a tip or story? Get in touch with our reporters at [email protected]

Like TMS? Subscribe to our free daily newsletter

Related

Tags: AsiaBusinessLonger readPolitics
ShareTweetShare

Latest Posts

Telegram is becoming a new haven for QAnon, even as Trump leaves office

Telegram is becoming a new haven for QAnon, even as Trump leaves office

January 21, 2021
Biden’s first 100 days, explained

Biden’s first 100 days, explained

January 20, 2021
“Economic anxiety” is an insufficient explanation for Donald Trump’s presidency

“Economic anxiety” is an insufficient explanation for Donald Trump’s presidency

January 20, 2021

What is Poshmark, the secondhand retail app going public?

January 20, 2021

Will a Democratic Senate abolish the filibuster?

January 19, 2021

What is Biden’s plan to vaccinate America?

January 19, 2021

What consequences are Trump supporters facing for the attack on the Capitol?

January 19, 2021

Does deplatforming work?

January 18, 2021

The international reaction to Trump’s Twitter ban, explained

January 18, 2021
  • About
  • Advertise
  • Careers
  • Contact
  • Write for us

© 2020 The Millennial Source Ltd.

No Result
View All Result
  • World
  • US
  • Asia
  • Politics
  • Business
  • Profiles
  • Lifestyle
    • Food & Travel
    • Tech & Money
    • Health
    • Entertainment
  • Newsletter

© 2020 The Millennial Source Ltd.

Welcome Back!

Login to your account below

Forgotten Password?

Create New Account!

Fill the forms bellow to register

All fields are required. Log In

Retrieve your password

Please enter your username or email address to reset your password.

Log In

Add New Playlist

We are using cookies to give you the best experience on our website.

You can find out more about which cookies we are using or switch them off in settings.

The Millennial Source
Powered by  GDPR Cookie Compliance
Privacy Overview

This website uses cookies so that we can provide you with the best user experience possible. Cookie information is stored in your browser and performs functions such as recognising you when you return to our website and helping our team to understand which sections of the website you find most interesting and useful.

Strictly Necessary Cookies

Strictly Necessary Cookie should be enabled at all times so that we can save your preferences for cookie settings.

If you disable this cookie, we will not be able to save your preferences. This means that every time you visit this website you will need to enable or disable cookies again.