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RFA: Why the CCP Wants Private Companies to Set up Party Organizations

People’s Daily published a long article on Wednesday saying that millions of private enterprises across the country have set up party organizations. The article reported that, by the end of last year, 1.58 million private enterprises in China had established party organizations, which indicates that more and more private entrepreneurs recognize the importance of party development work. Currently there are more than 32 million private companies in China and more than 76 million private individually owned businesses. They contribute more than 50 percent of the tax revenue, more than 60 percent of GDP, and more than 70 percent of technological innovations, accounting for 80 percent or more of urban labor employment and more than 90 percent of the number of companies.

RFA questioned why, in the early days of reform and opening up, the CCP reduced the influence of party organizations, whereas now, it requires the private enterprises to set up party organizations?

According to the comments in an RFA article, after seeing Alibaba, Tencent, and Baidu become influential and powerful enterprises, the CCP felt it was losing control. The growth of private enterprises in China does not benefit the CCP’s control. Even though private entrepreneurs do not want to see party organizations set up in their companies, they also don’t want to see their families destroyed. While the head of Alibaba, Tencent, and Baidu stepped down, these private enterprises in China always relied on collaboration with the government to grow their businesses. However, even if they are established, they cannot survive on their own for too long. It is impossible for China to return to the public ownership of the Mao Zedong era. China’s current trend is similar to that of Nazi Germany’s state capitalism. Private companies exist in nominal terms, but the government can do whatever it wants to these companies.

People’s Daily, October 15, 2019
Radio Free Asia, October 16, 2019