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VOA: China’s SOEs in Hong Kong Openly Establish Party Structure

Voice of America (VOA) reported that China has recently taken off the veil and is openly establishing the Communist Party structure in its State Owned Enterprises (SOEs) that are listed on the Hong Kong Stock Exchange.

“From 2016 through July 2017, at least 32 of China’s SOEs listed in Hong Kong proposed to adjust their corporate governance structure to include articles that formally establish the Chinese Communist Party (CCP) Committee within the company. It has become particularly obvious in the past few months.”

The Industrial and Commercial Bank of China (ICBC) passed amendments to its by-laws in June 2017, including the following articles:

“According to the ‘Constitution of the Chinese Communist Party’ and the ‘Company Law,’ (ICBC decides to) establish the CCP’s organization (within the company).”

“The CCP Party Committee will have one Party Secretary, two Deputy Secretaries, and a few Party Committee members. The Chairman of the Board and the Party Secretary should be the same person.”

In their by-laws, other SOEs, including CITIC Securities, Sinopec, and other steel and energy companies, also defined the CCP’s leadership role in the company. These 32 companies have a collective market value of over US$1 trillion.

Since it attained power in China in 1949, the CCP has always firmly controlled China’s SOEs.

In 2001, shortly after China joined the WTO, China extended the CCP’s control to private companies. It required that any private company that had three or more CCP members as employees must establish a Party Branch or Committee within the company.

Walmart China and other foreign enterprises in China established CCP Branches around 2006.

Source: VOA, August 15, 2017