China Economic Weekly carried an article that was originally from a People’s Daily news report. The report stated that it has become a trend for Communist Party branches to establish themselves in foreign investment enterprises in China. It started with the establishment of a Party branch in Wal-Mart in 2006. After that, more and more foreign enterprises have embraced the trend. Radio Free Asia interviewed Tang Jitian, a lawyer in Beijing on his reaction to the article.
According to Tang Jitian, on the one hand, this is a natural reaction for the Party; it is trying to exercise a tighter grip as it is losing control of society. On the other hand, for foreign companies to allow the establishment of Party branches within the company shows that they have chosen to compromise and give in to the hidden rules because they want to survive in China. “… once these foreign companies get deeply involved in doing business in China, they soon realize that, on the surface, they are dealing with some administrative or legal entities. However, the entity that has the real power and is in control is the Party, especially key personnel as well as different Party organizations.”
Source: Radio Free Asia, July 17, 2012