Party will reassert control over business in China

Subject

Communist Party control over private businesses.

Significance

The Chinese Communist Party sees itself as a 'vanguard party'. That is, it governs by leading other social groups, including the government and private enterprise. Reforms over the years have withdrawn the government from direct control of many industries, but the Party is reasserting control behind the scenes.

Impacts

• In the business sector, control by the state is being replaced with control by the Party; enterprise is not an independent sector.
• Large private sector firms such as China's ICT giants are subject to the influence and occasional control of Party groups.
• Party infrastructure in foreign companies is growing, and the Party may take a closer look at business decisions.