Transcript Chinese Business Decision Making

Business Environment in China
MKT3651
Lecture 4
Political System
I. The Communist Party of
China
Communist Party Structure
中國共产党全国代表大會
CPC National Congress
中央紀律檢查委員會
CPC Central Commission
for Discipline Inspection
中央軍事委員會
CPC中央委員會
Central Committee
PRC Central Military
Commission
總書記
General Secretary
中央政治局 Political
Bureau
)
常務委員會 Standing Committee
省級黨委員)
(直轄市、省、自治區
＇
地區級黨委會
(市、區)
縣級黨委會
(縣、鄉)
(7 )
中央書記處
Secretariat of the
Central Committee
中央直屬機構
CPC members –
Provincial
/Municipal/Regi
on./County
Level
中央黨校
幹部教育組
文獻研究室
Ministries &
黨史工作組
黨史研究室
Commision
黨建設工作
紀律檢查委員會
思想宣傳工作組機關工作委員會
台灣工作組
保密委員會
對外宣傳組
政策研究室
外事小組
政法委員會
財經小組
對外聯絡部
統一戰線部
中央宣傳部
光明日報
中央組織部
人民日報
中央辦公廳
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.
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.
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.
The Politburo Standing Committee
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
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
The Politburo Standing
Committee

The current members of the 16th PSC are
(as of 2003): (Con’t)
 Zeng Qinghong (曾慶紅) - VicePresident of the People's Republic of
China

Huang Ju (黃菊) - Vice Premier, State
Council of China
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
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
The Politburo Standing
Committee

Standing Committee of the
Political Bureau of the
CPC Central Committee
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 selfperpetuating.
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.
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).
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
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
II. The Government
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.
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.
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.
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.
1. State Council

The current members of State
Council:

Wen Jiabao (溫家寶 ) – Premier
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 )
Relationships between Gov’t & Party
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
司法機構
最高人民法院
Supreme Peoples
Court
選出 Election
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
國防部 Ministry of National
Of China)
Defence
軍事委員會 Central Military Commission
人民解放軍 People Liberal Army (PLA)
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)
2. Local Government Categories
and Hierarchies

Administrative Hierarchy of China (1996)
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.
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.
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.
III. The Four Generations of
Leaders
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
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
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
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
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
Three sources of power

Military Affairs Commission
 People's Liberation Army (PLA)
 Central Military Commission: Hu Jintao
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.)
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
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.
End.