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Communist Party Members in Foreign Invested Companies

Xinhua published an article featuring stories of how Chinese Communist Party (CCP) members and branches inside foreign invested companies in Shanghai helped the companies pull through difficult times during the global financial crisis. A few large corporations including the U.K.’s Hamworthy, the U.S.’s Medtronic, Walmart, and Hamilton Sundstrand, Korea’s Samsung, and Finland’s Nokia Siemens Networks, have CCP branches in place in their China subsidiaries.

According to the article, “In 2004, Shanghai Foreign Service Co., Ltd, (abbreviated SFSC, a subsidiary company of Shanghai World Expo Group, which specializes in human resource management for foreign investment companies in Shanghai) assumed the function of manageing its 3,900 Chinese Communist Party members. Among the 550,000 employees of foreign invested companies, almost 10,000 are CCP members. As of end of March this year, under SFSC, there awere 407 stand-alone CCP branches in individual foreign invested companies and 88 CCP branches jointly across foreign invested companies.”

“There are more than 6,000 foreign invested companies in Suzhou City, with over 1,000 CCP organizations in place. Statistics indicate that, at the end of 2010, there were 7,300 CCP organizations in ‘two new’ types of organizations, managing 110,292 CCP members, accounting for one third of the city’s total membership.”

[Ed. note: The “two new” types of organizations refer to new economic and social organizations. Before the economic reform, CCP organizations existed in virtually all units of Chinese society. Since the reform, many new economic and social organizations, such as foreign invested companies, appeared and there were originally no CCP organization in place.]

Source: Xinhua, July 15, 2011.