The Chinese Communist Party wants to completely control the private sector. The government has issued new guidelines for the private sector, as well as the role of the United Front, which has also been expanded. The United Front is one such department of the government, designed to increase the influence of the Communist Party.
President Xi Jinping wants the private sector to work according to his party, so he has been asked to set up party cells in private enterprises. Although China has been doing this for a long time, now the government wants to implement it more strictly.
Foreign companies to need to toe the line
The law to create party cells in the private sector was enacted in the year 2000 and by 2016 party cells had been established in 68 percent of China's non-government enterprises. Even foreign companies could not escape the Chinese government. Seventy percent of foreign companies in China had formed the Communist Party Cell by 2016.
The effect of protest did not happen
There was widespread opposition to this move of the Chinese government. In 2017, a German trade group objected to the decision to set up a Chinese Communist Party cell. He even said that foreign companies can consolidate their business from China due to pressure from the Communist Party. However, it did not have any effect on China and now it has started taking steps to completely control the private sector.
This is the strategy of Jinping
Party Cell is a way of President Jinping to strengthen his hold on the private sector. After expanding the role of the United Forum, now these cells will work together with it and will further the agenda of the government. Chinese State Wire Service Xinhua says that strengthening the work of the United Front in the private sector is a very important step. This will strengthen the party's grip on the private economy.
60 percent stake
The private sector accounts for 60 percent of China's economy. The private sector generates 80 percent of jobs and is already facing losses due to the ban on companies like Huawei and Tencent. It is said that these companies are already facing global blackout due to Corona due to the activities of the Jinping government. Now the Communist Party of China is gradually has begun to completely erase the line between government and private. In China, the coming days are going to be very difficult for private companies.
