Tuesday, June 18, 2013

On the Relationship Between the Chinese Communist Party and Non-State Enterprises--Translation of CCP Central Committee Policy “Opinions on Improving and Strengthening Party Organization’s Construction in Non-SOEs (Temporary)”

The relationship between Communist Party and State has been the object of substantial work among Chinese and foreign academics.  But perhaps more interesting is the emerging relationship between the Chinese Communist Party and private enterprises operating within the parameters of Chinese socialism.  This presents not merely another facet of law with Chinese characteristics, but also another aspect of the way in which polycentricity has become more naturalized even within the domestic legal orders of strong states.

(Pix (c) Larry Catá Backer 2013)

I have posited that the old boundaries between public and private law have been giving way to new and more complex polychromatic relationships between state and other transnational enterprises, principally those operating in corporate form. (Backer, Larry Catá, "The Structure of Global Law: Fracture, Fluidity, Permeability, and Polycentricity," 17(2) Tilburg Law Review 177-199 (2012). Chinese state and Communist Party authorities have begun to act on this understanding, both in the construction of internal policy and in the development of policy for the effective intervention int he construction of mulch-sourced governance frameworks.Patrick Boehler recently reported that "Beijing has for the first time established an advisory council of multinational heavyweights to help the leadership keep a finger on the pulse of major corporations in vital industries. . . .  The mechanism will gove Bejing a platform to directly lobby influential multinational leaders across different sectors in future trade disputes."  Patrick Boehler, "Beijing Sets Up Multinationals Advisory Body," South China Morning Post, June 7, 2013.

This approach stands in marked contrast to similar efforts to leverage international softy power by Norway. (Backer, Larry Catá, Sovereign Investing and Markets-Based Transnational Legislative Power: The Norwegian Sovereign Wealth Fund in Global Markets 29 American University International Law Review – (forthcoming 2013)(November 18, 2012). Yet in both cases, the state is seeking to leverage public power through private markets.  In China, as in Norway, that leveraging involves active participation i corporate governance. While the Norwegians pursue this goal through their active shareholder policy, the CCP has deepened their policy of integrating Party work and education within corporate governance.  In this way, state and enterprise are connected seamlessly through the mediating force of the CCP, the way in which the Party stands as the nexus poiint between domestic and foreign policy. (Backer, Larry Catá and Wang, Keren, 'What is China's Dream?' Hu Angang Imagines China in 2020 as the First Internationally Embedded Superpower (February 23, 2013). Consortium for Peace & Ethics Working Paper No. 2013-2). But in the case of enterprise power within globalization, that seamlessness requires recognition of distinct governance spheres, one public and the other private.

I will be writing more about this in the context of the Chinese system in future posts.  In this introduction, I present a translation of a basic document of CCP policy--the “Opinions on Improving and Strengthening Party Organization’s Construction in Non-SOEs (Temporary)” People’s daily 2012 May 25th.

Recently the General Office of CPC Central Committee issued its "Opinions on Improving and Strengthening Party Organ’s Establishment in Non-SOEs (Temporary)" and requested all local CPC office to undertake its conscientious implementation in light of actual conditions. Here is the partial translation of critical information from this document:

中共中央办公厅印发《关于加强和改进 非公有制企业党的建设工作的意见(试行)》
《 人民日报 》( 2012年05月25日 01 版)

General Office of CPC Central Committee issues “Opinions on Improving and Strengthening Party Organization’s Construction in Non-SOEs (Temporary)” People’s daily 2012 May 25th.

Non-SOEs are important actors in our market economy system with socialist characteristic. Thus in order to perfect our economy system, direct Non-SOEs’ healthy development, encourage economy and social development, improve labor-employer relation, we need to improve Party organ’s presentation in grass-root level and to expand Party’s membership with the people. According to the Constitution of CPC and Company Law of P.R.C., following opinions are provided to improve party organization’s activity in Non-SOEs:
I. The nature and function of Party organizations in Non-Public economy sectors
1. The role of Party organizations
Party Organizations in Non-Public economy sectors are strategic bases for Party’s political presentation and guidance to the general employees.

2. Primary responsibility for the party organ:
1) Promotes party policy and party line. Organize party member study Marxism-Leninism, Mao Zedong Thought, Deng xiaoping Theory and Three Represents Theory. Applies and enforces Scientific Development, Party line into daily work. Educates Party members and employees to obey the law and regulations. Guides and supervises company operated under the law and CSR requirements.
2) Connects employees. Improves and strengthens ideology education. Deeply involves and sincere concerns employees and party members’ interests. Improves the connection between employees and Party though caring and resolving employees’ concerns.
3) Protects everyone’s legitimate rights: be responsive to people’s concerns. Communicates and mediates different party’s interests. Encouraging company and society stabilization though structuring harmony lobar relation.
4)Cultivates advanced Company culture (Beliefs and Value). Establishes Company culture under socialist core value. Organize various culture activities for better working environment.
5) Model worker. Party members should acts as model workers, who set examples for other employees to improve the productivity of the company.
6) Self-discipline. Improves party organization’s institutionalization system by fully appreciating and supporting the works of party discipline agency within the party organ.

II. Establishing and improving Party organization’s leadership system and working mechanism
3. Establishing a complete Stewardship and managing system. Local party committee at county level or above should establish specialized working agency in charge the Non-SOEs’ party organ’s establishment work. If condition allow, party organ at Non-SOE could set up an individual working environment with party discipline inspection agency. If condition not allowed, party organ could affiliate and work with relevant and similar function agency in Non-SOE.

Special Party Committee organs should be established within industrial parks, where Non-SOEs heavily concentrated. Such SPC specialize the party organ establishment works for Non-SOEs located in the industrial park. The regular township and community (township and community is the lowest level social group in China) party organ will responsible for the party organ establishment work under their jurisdiction. Professional trade association or government regulating agency could also responsible for the party organ establishment work.
4. Creating direct communication mechanism. Generally, county level party committee is also responsible for the communication, ideology education, leadership appointments for Non-SOE’s party organ. Higher level party committee will involve in above responsibility for large size Non-SOEs with numerous party members.
Expand the party organ’s presentation and coverage among special groups by inviting people in special groups join the party. Maintain the quality of the party members. By quality, it cites the examples of high level managing staffs, professionals. By special group it also includes migrate workers and investors.
III. Improving the expansion of Party’s organization coverage
5. Setting up clear targets: Works hard to make it possible for having at least one party member in companies where there are more than 50 employees.
6. Inviting ‘Qualified Talents’ join the party. Recreating professionals and managers for the party work. Higher level party committee (above county level) should especially invite investors of large and influential company to join the party.
7. Sending instructors to Non-public economy sectors for future communications. The establishment of the party organ in Non-SOEs could start with establishing Labor Union and CPC Youth league.

IV. Exploring the channels for Party Organizations’ operation
8. Party Organ should gain trusts and supports from the investors of Non-SOE. The operation of Party Organ in Non-SOEs shall concentrate on the company’s interests. On the one hand, party organ organize studies to educate managing staffs understand party line and state law and economy policy. On the other hand, party organ should seek to build communication channel that allow party organ leader involve in critical managing decision process of Non-SOEs. The purpose is to improve party members’ influence over Non-SOEs’ economic activity.
9. Explore new forms of Party activities. Besides the activities prescribed in Party Constitution, we encourage other unified activities. For example, takes advantage of the internet. Hold on-line discussion forum, on-line party schools and open weibo accounts.

V. Concentrating on the selecting Right secretary
10. Provide reliable party secretaries. Party secretary normally created by companies’ internal election. Party should recommend candidates from companies’ managers, party officials, SOE managers, ex-military soldiers or college graduates serving in the rural countryside to win the election for the party secretary. For large size corporation with large number of party members, Party should send professional party workers to a company as deputy party secretary when the major shareholder of the company is the party secretary. When the party secretary, deputy secretary is not the major shareholder of the company, he or she should try to run for the election of the labor union chairman or vice chairman.
Party secretary in Non-Public economy sector should study and promote the party line and policy, implement higher party organization’s decision, improve the development of the company and managing good relation between party and employee of the company.
11. Professionalize Party workers. Utilize modern management technics to professionalize the party workers with reasonable structure and sufficient number of workers. Create professional communication forums for Party workers team to improve their working performance.
12. Improve working performance by participating training sessions. Party secretary must join the training session at least once a year. The annual training time should be longer than three days. The new elected Party secretary should concentrate on the studying of party polices and lines, skills about party history and party work, company management trainings.
13. Rating system and working benefits. Party workers and party secretary in Non-public economy sectors will be judged by the company’s party members based on rating system. These party workers can also access to appropriate party benefits. Moreover, local party organization could recommend qualified party secretaries and party workers to serve in the State legislature bodies, such as local NOC representatives and political consultative conference. Higher Party Organization concerns and support Party secretaries when the secretary lost employment due to insisting on the party principals.
VI. Education and guidance to the investors and shareholders of Non-public economy sectors.
14. Improve the training and education by creating Non-public company shareholder or investor education and training system. Non-public companies’ shareholders shall have education of China’s Communist Party and socialism theories and State law and regulations. Party organization should educate and train party member shareholders or investors obeying CPC policy and rules. For non-public member investor or shareholders, party organizations should guide them pursuing socialism belief.

15. Improving the service to the Non-public economy sectors. Local Party organizations and Party Branch organizations in Non-public economy sectors should frequently contact reputable companies to participate communication forum to learn their opinions to the operation of Party works. Especially during the process of drafting social or economy policies, local Party Organizations should listen to the opinions from the investors of these companies and assit the companies solve the developing issues.

16. Strengthening the organization and guidance works. Non-public economy sector’s party organization construction should be incorporated into the local Party Committee’s general working plan. Party agencies, such as discipline & inspection and united front, should work with the state agencies like commerce and finance. Held promoting events to encourage companies to set up a party branch.

17. Financial support for Non-SOEs’ party organ operation: Higher level party committee could decide to return the membership fees to Non-SOEs’ party organ for supporting their operation.

中共中央办公厅印发《关于加强和改进 非公有制企业党的建设工作的意见(试行)》
《 人民日报 》( 2012年05月25日 01 版)
新华社北京5月24日电 中共中央办公厅近日印发了《关于加强和改进非公有制企业党的建设工作的意见(试行)》,并发出通知,要求各地区各部门结合实际认真贯彻执行。《意见》全文如下:








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