Skip to main content

Serve the Companies! Communist as Broker

This is not your father's communist party. The slogan of Chinese Communist Party (CCP) members used to be, "Serve the People." Today's CCP has adopted a new mantra of "service," but today's motto in money-obsessed China for party members would be closer to, "Serve the Companies."

I came across a report on "Optimal Service Measures for Boosting Enterprise Development" from the statistics bureau in Xigang, a town of 131,000 people and 64 villages in Zaozhuang Prefecture in southern Shandong Province. The town has 104 party branches with over 2000 members. The town was a "peoples commune" from 1958 to 1984, and it still has a lot of agriculture, but coal-mining is the major industry.


The report portrays the unique role that the communist party has carved out for itself in 21st-century China: a team of management consultants and brokers who orchestrate the development of the economy by planning, organizing, pushing and pulling levers to construct what they hope will be a flourishing economy.

The report sounds like it might have been torn out of an MBA textbook (It might have been). The party is to play a guiding role in economic development, selecting industries appropriate for the local economy, setting up the entire industry chain--raw materials, suppliers, manufacturers, sales channels--and organizing and coordinating it all.

The party emphasizes its "project leadership." The party and government have organized leadership groups for each of 19 local projects. They periodically hold meetings where they hear about problems, coordinate, and troubleshoot.

Party leaders coordinate "resource integration." Leaders assess the available resources and identify industries that can take advantage of them. They establish "industry incubators" and promote entire industry chains. They bring together industry associations and cooperatives.

Party sloganeering about "thought," "study," "vigorous economic construction" seems to be a euphemism for re-programming party officials and the bureaucracy to become servants of industry. They use distance education to train party members on how to facilitate economic development.

Party leaders act as roving management consultants, making "survey visits" to companies for inspections and to give advice. These visits can be crack-downs on safety, pollution, or "coordinating solutions to financial problems" (telling the banks to lend money to the company). The party transmits policies, information, propaganda and guidance.

In its view, the party, government, and business are intertwined. The party sees itself as an indispensable organizer and broker that orchestrates the economy's development in an orderly and easy-to-control manner. The underlying assumption is that a central all-knowing organizer is necessary to prevent society from descending into chaos.

This seems to be a mash-up of at least four undercurrents in modern China:
(1) Traditional Chinese bureaucratic management,
(2) Leninist/socialist state-led industry planning,
(3) Hu Jintao's "scientific development concept"
(4) Jiang Zemin's "3 represents" that justified the party's embrace of private entrepreneurs.

Is this intertwining of party, government, and business the wave of the future with China's ascendance on the world stage (now that the financial crisis has discredited the free market)? There are probably many in Washington and Brussels who would like it to be, and that's a little scary.

Comments

Popular posts from this blog

Xi Jinping's Doctoral Thesis

Xi Jinping is the vice president and presumed next president of China but little is known about him. In this post the dimsums blog offers its contribution to the genre of Xi Jinping-ology by conveying Xi's decade-old views on agricultural markets. Ten years ago Xi Jinping wrote a thesis, "Tentative Study of Agricultural Marketization" (中国农村市场化研究) for a Doctor of Law degree at Tsinghua University in Beijing, a top breeding-ground for Chinese officials. The dimsums blogger has spent several hours poring over the 200-plus page tome to see what it reveals about Dr. Xi. The thesis is remarkably close to what China has been doing lately in agricultural policy, suggesting that Xi (or the person who actually wrote the thesis) has a major say in policy or is at least in agreement with what's being done. There is nothing adventurous, controversial (or insightful) in the thesis. It seems to be the work of a wonkish technocrat who is not prone to talk out of turn or wander from...

Divergence in U.S. & Chinese egg prices

High egg prices are a hot topic in the United States. China, in contrast, has a glut of eggs and depressed prices.  The March 14, 2025 USDA Agricultural Marketing Service weekly eggs market overview reported that U.S. egg prices continued declining during the second week of March as the supply situation improved. No significant highly pathogenic avian influenza (HPAI) outbreaks have occurred in March and U.S. egg demand is relatively light. The average U.S. wholesale price for Grade A large white eggs was $4.15 per dozen, down sharply from their February peak.  Until 2021, Chinese and U.S. wholesale egg prices had been roughly equal at about $1-to-$2 per dozen with no trend. U.S. prices fluctuated more than Chinese prices, so the U.S. price was sometimes higher, sometimes lower than the Chinese price after converting them to dollars per dozen.  Chinese prices converted using monthly exchange rate and assuming 0.6 kg per dozen. Sources: USDA and China Ministry of Agricult...

China's Corn & Wheat Imports Down 97% From Last Year

China's first customs data for 2025 feature a 97-percent decline in corn and wheat imports from a year earlier. Soybean imports were up slightly by volume (but down in value), and dairy, pork, poultry, and seafood imports rebounded year-on-year. Life was less sweet in China with a 93.7% decline in sugar imports, and drinking appears to be up as wine and beer imports posted gains.   China's agricultural imports for January-February 2025 were down 14.7 percent from a year earlier. The value of farm and food goods imported for the first two months of 2025 totaled $30.7 billion, down $5.26 billion from the same period in 2024. China's exports of agricultural products during January-February totaled $15.2 billion, up $393 million from a year earlier.  Data from China Customs Administration website. As usual, soybeans were the largest component of China's agricultural imports during January-February 2025 with a value of $6.3 billion. Meat imports were valued at $4.1 billion, ...