Now China's communist party wants stronger role in the growing pvt sector

The party called on the United Front to improve the government's leadership role in the nation's private sector, according to guidelines issued by the General Office of the CPC

Chinese President Xi Jinping delivers a speech during a meeting to commend role models in China's fight against the Covid-19 outbreak, at the Great Hall of the People in Beijing, China. Photo: Reuters

2 min read Last Updated : Sep 16 2020 | 9:49 PM IST

China’s Communist Party is looking to strengthen its leadership and control of the country’s growing private sector and its employees by extending the work of the United Front further into the business community.

The party called on the United Front to improve the government’s leadership role in the nation’s private sector, according to guidelines issued by the General Office of the CPC’s Central Committee on Tuesday. The front is an umbrella organization that aims to increase the party’s influence and control both domestically and internationally. The move aims to address emerging challenges and risks as the scale of private enterprises increases and private businesspeople have diverse values and interests.

While it’s unclear what the new policy will mean for China’s millions of private firms, it comes as the state and party are pushing for greater control and influence over more of the economy. That increasingly unclear dividing line between public and private sector is one of the factors behind rising tensions with the U.S. and other states, with ostensibly private firms such as Huawei Technologies Co. seen overseas as tools of Chinese state power.

Private businesses account for 60% of China’s economic output and create 80% of urban jobs, but their position has been difficult in recent years, with the perception that the government under President Xi Jinping favored the state sector. In addition, they have borne the brunt of the U.S.-China trade war as many are export-oriented manufacturers. The Covid-19 outbreak and economic slump have added to their woes this year.

Notable Details

* This change is in response to profound flux in international and domestic situations

* Private sector businesspeople are significant forces to be united and are relied upon by the CPC

* The CPC will support and serve private businesses to help drive their high-quality growth

* The work of the United Front should cover all private businesspeople including investors, managers, stakeholders, and people from Hong Kong and Macau who invest in the mainland

* The United Front will build a database and talent pool of private businesspeople