Chinese Journal of Sociology ›› 2016, Vol. 36 ›› Issue (5): 175-196.

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The Chinese Communist Party's Integration Policy Towards Private Enterprises and Its Effectiveness: An Analysis of the Ninth National Survey of Chinese Private Enterprises

HE Xuan1, MA Jun2   

  1. 1. School of Economics and Trade, Guangdong University of Foreign Studies;Center for Cantonese Merchants, Guangdong University of Foreign StudiesAuthor;
    2. Sun Yat-sen Business School, Sun Yat-Sen University;Research Center for Chinese Family Firm, Sun Yat-Sen University
  • Online:2016-09-20 Published:2016-09-20
  • Supported by:

    The research was sponsored by National Natural Science Foundation of China "Co-Evolution of Chinese Family Business and Institutional Environment:Empirical Study Based on Allocation of Entrepreneurship" (71572051) and "Moderating Effect of Entreprenuer's Zhongyong Thinking Style on the Relationship Between Family Intention and Agent Governance Mode" (71272083);the research was sponsored by Zhejiang Major Tender Subject of Zhejiang Province Research Center "A Comparative Study of Zhejiang and Guangdong Enterprises:A New Paradigm of Business Group Research Based on Ethnic Group" (ZSZD1401).

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Abstract:

Since the Chinese economic reform, the CCP has gradually moved towards a separation of party-state from society, manifested in the withdraw of the party power in many areas of society and the growth of the new power of private enterprises. The CCP has actively reformed itself as it has evolved from a revolutionary party into a governing party. The Party's support of and collaboration with private enterprises, a powerful and indispensable force in Chinese economy, is a good example of such a change. Instead of focusing on political acceptance and organizational infiltration as most of the existing studies have done, this paper examines the political incorporation of the CCP's Integration Policy towards private enterprises. Theoretical analysis, supported by case studies, indicates that the relationship between the ruling party and private businesses is not, contrary to the common understanding, a unidirectional absorption and penetration by the Party. Instead, it is an interdependent and mutually beneficial relationship. A further empirical examination of the Ninth National Survey of Private Enterprises confirms that private businesses that have set up CCP organizations or with owners themselves CCP members identify more strongly with the ruling party policies, and are more active in production expansion and long-term growth. It appears that the CCP Integration Policy towards private enterprises has effectively utilized both the "top-down" organizational infiltration and the "bottom-up" political integration. In so doing, the CCP maintains its control over private enterprises. Not only does it consolidate the governing legitimacy of the Party but also enables private businesses to fulfill its social function. The policy helps the Party successfully avoid the formation of non-institutionalized powers outside the system.

Key words: private business, Chinese Communist Party, organizational embeddedness, political absorption