Business Environment in China

1. Business Environment in China MKT3651 Lecture 4 Political System

2. I. The Communist Party of China

3. Communist Party Structure 中國共产党全国代表大會 CPC National Congress 中央軍事委員會 中央委員會 中央紀律檢查委員會 PRC Central Military Commission CPC Central Committee CPC Central Commission for Discipline Inspection 總書記 General Secretary 中央政治局 Political Bureau ) 中央黨校 幹部教育組 常務委員會 Standing Committee Ministries & Commision 文獻研究室 黨史工作組 黨史研究室 黨建設工作 紀律檢查委員會 省級黨委員 思想宣傳工作組 機關工作委員會 中央書記處 ( 7 ) CPC members – Provincial /Municipal/Region./County Level ＇ 台灣工作組 ( ) 直轄市、省、自治區 保密委員會 Secretariat of the Central Committee 中央直屬機構 對外宣傳組 政策研究室 外事小組 地區級黨委會 政法委員會 財經小組 對外聯絡部 ( ) 市、區 統一戰線部 中央宣傳部 光明日報 縣級黨委會 中央組織部 人民日報 ( ) 中央辦公廳 縣、鄉

4. I. The Communist Party of China • The Communist Party of China (CPC) was founded on July 1, 1921 in Shanghai, China. • The CPC is the ruling party of mainland China. • The CPC derives its ideas and policies from the people's concentrated will and then turns that will into State laws and • decisions which are passed by the National People's Congress of China through the State's legal procedures.

5. I. The Communist Party of China • Theoretically, CPC does not take the place of the government in the State's leadership system. • The Party conducts its activities within the framework of the Constitution of the People's Republic of China and the law and has no right to transcend the Constitution and the law. • All Party members, like all citizens in the country, are equal before the law. However, their influences are actually very significant.

6. The Politburo Standing Committee • The Politburo Standing Committee (政治委員) – nine members; • The Politburo Standing Committee of the Communist Party of China (中国共产党中央政治局常务委员会) is a committee whose membership varies between 5 and 9 and includes the top leadership of the Communist Party of China. • The inner workings of the PSC are not well known, although it is believed that decisions of the PSC are made by consensus. • Formally the membership of the Committee is approved by the Central Committee. In practice, the membership of the PSC appears to be the result of negotiations among the top leadership of the Communist Party.

7. The Politburo Standing Committee

8. The Politburo Standing Committee • The current members of the 16th PSC are (as of 2003): • Hu Jintao (胡錦濤) - President of the People's Republic of China, General Secretary of the CPC, Chairman of the Central Military Commission. • Wu Bangguo (吳邦國) - Chairman of the Standing Committee of the National People's Congress

9. The Politburo Standing Committee • The current members of the 16th PSC are (as of 2003): (Con’t) • Wen Jiabao (温家寶) - Premier of the State Council of the People's Republic of China • Jia Qinglin (賈慶林) - Chairman of the People's Political Consultative Conference

10. The Politburo Standing Committee • The current members of the 16th PSC are (as of 2003): (Con’t) • Zeng Qinghong (曾慶紅) - Vice-President of the People's Republic of China • Huang Ju (黃菊) - Vice Premier, State Council of China

11. The Politburo Standing Committee • The current members of the 16th PSC are (as of 2003): (Con’t) • Wu Guanzheng (吳官正) - Secretary of the Central Commission for Discipline Inspection • Li Changchun (李長春) - no other positions held, known to many as the propaganda chief

12. The Politburo Standing Committee • The current members of the 16th PSC are (as of 2003): (Con’t) • Luo Gan (羅幹) - State Councilor, Political and Legislative Affairs Committee secretary http://app1.chinadaily.com.cn/highlights/party16/structure2.html

13. The Politburo Standing Committee • Standing Committee of the Political Bureau of the CPC Central Committee

14. The Politburo (政治局) • The Politburo (政治局) –22 full members; • The Politburo of the Communist Party of China (中国共产党中央政治局) is a group of 19 to 25 people who oversee the Communist Party of China. Power within the politburo is centralized in the Politburo Standing Committee of the Communist Party of China. • The Politburo is nominally appointed by the Central Committee of the Communist Party of China but the practice since the 1980s has been that the Politburo is self-perpetuating.

15. The Politburo (政治局) • The Politburo (政治局) – 22 full members; (Con’t) • Its members generally simultaneously hold positions within the People's Republic of China state positions • Control over personnel appointments of the Politburo and Secretariat. • The full Politburo meets once a month and the standing committee meets weekly. • The agenda for the meetings appears to be controlled by the General Secretary and decisions are made by consensus rather than by majority vote.

16. The Secretariat (書記處) • The Secretariat (書記處) – headed by the General Secretary of the Communist Party of China; • The most important role of Secretariat of the Communist Party of China Central Committee (中国共产党中央委员会书记处) involves making personnel decisions in both the party and state (but not the military).

17. The Central Military Commission (中央军事委员会) • The Central Military Commission (a parallel organization of the government institution of the same name); • The Central Military Commission (中央军事委员会) refers to one of two bodies within the People's Republic of China. • Both in command of the People’s Liberation Army • Don’t mix up with Ministry of National Defense

18. The Discipline Inspection Commission • The Discipline Inspection Commission – anti-corruption force among party cadres. • The Discipline Inspection Commission of the Communist Party of China or CPC Central Commission for Discipline Inspection (中共中央纪律检查委员会) is the government body within the People's Republic of China charged with rooting out corruption and malfeasance among Communist Party of China cadres

19. II. The Government

20. 1. State Council (國務院) • The State Council is the chief civilian administrative body of the People's Republic of China. It is chaired by the Premier and contains the heads of each governmental department and agency. There are about 50 members in the Council. • Standing Committee members of the State Council include the premier, four vice-premiers, five state councilors (國務委員), and the secretary-general. • The State Council meets once a month. • Its standing committee meets twice a week.

21. 1. State Council (國務院) • Although formally responsible to the NPC in conducting a wide range of government functions both at the national and at the local levels, in practice the NPC's actual authority is rather limited • The State Council and the Communist Party of China are also tightly interlocked. Most of the members of the State Council are high level party members.

22. 1. State Council (國務院) • As the chief administrative organ of government, its main functions are to formulate administrative measures, issue decisions and orders, and monitor their implementation; draft legislative bills for submission to the NPC or its Standing Committee; • Prepare the economic plan and the state budget for deliberation and approval by the NPC. • Despite the inclusion of the Ministry for National Defense in the State Council does not control the People's Liberation Army.

23. 1. State Council (國務院) • The vice-premiers and state councilors are nominated by the premier, and appointed by the president with National People's Congress' (NPC) approval. • The premier is nominated and appointed by the president with NPC approval. • Incumbents may serve two successive five-year terms.

24. 1. State Council • The current members of State Council: • Wen Jiabao (溫家寶 ) – Premier

25. 1. State Council • The current members of State Council: Vice Premiers • Huang Ju (黃菊 ) • Wu Yi (吳儀 ) • Zeng Peiyan (曾培炎 ) • Hui Liangyu (回良玉 )

26. 政府Government 共產黨CPC 國家主席State President 共產黨CPC 選出 全國人民代表大會National People Congress 政治局Political Bureau 選出Election 司法機構 最高人民法院 Supreme Peoples Court 國務院State Council 中央委員會Standing Committee 各部Ministries & Commission 最高人民檢查院 Supreme Peoples Procuratorate Of China) 軍事委員會Central Military Commission 國防部Ministry of National Defence 人民解放軍People Liberal Army (PLA) Relationships between Gov’t & Party

27. 2. Local Government Categories and Hierarchies • At present, the organizational system of local government is divided into 4 levels: • a. Provincial level (省級) • b. City level (市級) • i.County level (縣級) • ii.Village (town) level (鄉鎮級) • c. Autonomous government of nationality region (自治區) • d. Special administrative district (特別行政區)

28. 2. Local Government Categories and Hierarchies • Administrative Hierarchy of China (1996)

29. 3. Central-Local Links • The supreme administrative organ is the State Council. • The administrative organs of state in the locality are the local governments centrally led by and obeying to the State Council. • The branches of local governments must carry out the laws and regulations of central government, complete the tasks given by it and accept its professional guidance.

30. 3.1. Functional division and coordination • The functions of central and local governments are very similar in content. • The difference between the local and central level is that • the central government manages the administrative affairs of the country centrally and makes the macro decisions • the local governments mainly manage local administrations.

31. 3.2. Centralization and decentralization of state powers • Central government can exert its influence on local administrations in many aspects. • The State Council, in terms of the administrative legislature, controls the local administrative procedures. • The local governments must follow the laws and regulations by the central government. • The State Council guides the local administrations in terms of policies, assigns tasks to local governments in terms of plans. • In doing so, the central government confers on the local governments the necessary authorities. • Local governments have counter-action to central government to some extent.

32. III. The Four Generations of Leaders

33. The First Generation • Mao Zedong (毛澤東), Zhou Enlai (周恩來), Zhu De (朱德), Liu Shaoqi (劉少奇) • assumed both political and military roles; • participants of the Long March (長征); • experienced both Sino-Japanese War and the War of Liberation (解放戰爭) • little overseas education

34. The Second Generation • Deng Xiaoping (鄧小平), Hu Yaobang (胡耀邦), Hua Guofeng (華國鋒 ) • Similar experiences as the first generation (junior roles); • leading positions during the war

35. The Third Generation • Jiang Zemin (江澤民), Zhao Ziyang (趙紫陽), Li Peng (李鵬) , Zhu Rongji (朱鎔基) • assumed either political or military roles; • experienced the Korean War; • received Russian education; mostly engineers

36. The Fourth Generation • Hu Jintao (胡錦濤), Wen Jiabao (溫家寶), Zeng Qinghong (曾慶紅) • born a little bit before the founding of the People's Republic; • good education; • mostly born or brought up from Shanghai

37. Three sources of power • The Communist Party of China (CPC) • Politburo • Politburo Standing Committee • General Secretariat Central Committee: Hu Jintao • National People's Congress (NPC) • NPC Standing Committee • The State Council • The President of China: Hu Jintao

38. Three sources of power • Military Affairs Commission • People's Liberation Army (PLA) • Central Military Commission: Hu Jintao

39. Issues faced by the fourth generation leaders • On economic growth • Improvement of SOEs – export-led growth – expansion of domestic demand • reduce income inequality • On state-owned enterprises (SOEs) • privatization: “grasp the large and let go of the small” (抓大放小 ) • partial ownership • On environmental protection • cautious in undergoing large scale infrastructure projects (Great Western Development Plan, south-north water transfer project南水北調工程 , etc.)

40. Issues faced by the fourth generation leaders • On health and education • containment of AIDS crisis • modernization and expansion of China's educational system • On law, order and human rights • legal aid programs as a “human right” • “strike hard” Campaign (嚴打) • rule by law

41. Issues faced by the fourth generation leaders • On political reform • Pursuing facts from reality, advance with the times (與時並進) • Build up new strategic partnership on the building of a long-term stable partnership with overseas countries that marches ahead with the time.

42. End.