Communist Party Cells? Nothing to See Here
If China wants to alleviate foreign investor concern over the party’s growing role in privately owned businesses, more transparency might help.
Red flag.
Photographer: Roy Liu/Bloomberg
China’s efforts to remake the geopolitical order have come into sharp focus this year. It isn’t the only area where President Xi Jinping is trying to rewrite the rules of the global game. The Communist Party is in the midst of a years-long program to increase its influence over business, including in companies that are privately owned and foreign-invested. It’s a process that bears watching — as far as is possible. The party isn’t known for transparency, and the scope, intentions and progress of this endeavor remain far from fully clear.
In fairness, this may have as much to do with overseas companies’ reluctance to speak as with Beijing, which has been relatively open about its push to establish a “modern private enterprise system with Chinese characteristics.” Corporate reticence is understandable. Resisting the formation of party committees inside companies would risk souring relations with the host country, while talking too candidly about the presence and activities of such cells might invite awkward questions from head office and lawmakers at home. In the circumstances, a tactful silence has appeal.