ECONOMIC UNDERPINNINGS AND GEOPOLITICAL SETTINGS
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BUSINESSPEOPLE CO-OPTATION IN CHINA’S COMMUNIST PARTY ADAPTION
Fidya Shabrina and Atik Septi Winarsih
Faculty of Social and Political Sciences Universitas Gadjah Mada
Univesitas Muhammadiyah Yogyakarta
Abstract:
The co-optation of businesspeople is an interesting phenomenon in the Chinese Communist Party’s CCP institutionalization. Involvement of the rich and wealthy not only contradicts the party’s ideology
of egalitarianism but is also strictly prohibited due to the Tiananmen incident in 1989. However, because of the massive development of Chinese social and economical landscape, businesspeople emerge
as an important social base of civil society. They possess abundant economical resource and hold an important role in the Chinese society as capital owner. The CCP is aware of this situation and therefore
attempt to involve businesspeople in political process through co-optation. The CCP implements co- optation to involve businesspeople in political process. The co-optation was recognized since the 16th
National Party Congress in 2002, during the Jiang Zemin administration. As China’s economic and political setting become more complex, ideology alone is not enough to sustain the CCP’s power. A
new structurized mechanism was required to guarantee that it remains as a legitimate ruler. The co- optation is considered as an attempt of the CCP to assure regime’s survival as well as to strengthen its
legitimacy. The article will discuss how and why the CCP co-opts businesspeople into the party.
Keywords: co-optation, Chinese Communist Party, businessman, legitimacy.
CHINA’S ECONOMIC MODERNIZATION AND INTERNAL PARTY DYNAMIC
CCP’s organizational complexity is an interesting phenomenon. Since 1949 until
now, CCP is the ruling party of China. In 2015, CCP members are noted to be more than 85
million ar around 6 of China’s population Communist Party of China, 2013
. As a party governing more than 1,3 trillion citizens, CCP
is required to continuously renew its supporting basis. The socioeconomic complexity in
contemporary China demands continuous regime adaptation for survival. Under the role
of Mao, party cadres mostly consist farmers and labors. Nowadays, CCP’s membership
has expanded into various profession: labors, farmers, government oficials, service
providers, merchants, students, retiree, etc. Number of party cadres from trading and
service sector is noted to be the second highest; 23,3 from total party members.
This number exceeds the number of party cadres that works as labors, that is 8,5 from
total party members see diagram 2.
As the party composition turns more heterogenic, ideology basis alone is not
suficient to guarantee the party’s legitimacy. A structured mechanism is required to sustain
the party role. Institutionalization becomes CCP’s main agenda to remain as a ruling
party. To avoid power opposition, CCP builds corporate connection between the state
and the private sector through involving businesspeople.
If we take a look at the history of CCP since its establishment in 1921,
businesspeople is not a signiicant component in party’s institutionalization. According to
Mao Zedong, capitalisme is a crime; those “capitalist walkers” ought to be put away
for good. During the rule of Mao, CCP’s leadership is very centralized; Mao is a very
domineering leader. His words is considered as law and those opposing it will be given
consequences.
During Deng’s leadership, China underwent massive economic growth. The
private sector in China grows very rapidly during these times. The rapid economic
growth brought implication on CCP’s member
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recruitment. Along with China’s remarkable growth, government oficial are aware of
the urgency to recruit competent and highly capable cadres; academia, technocrats, and
also business people. By the end of 1980, business people are involved as party cadre.
By that time, political participation given to business people is very limited. According to
Industrial, Commercial Administration, and State Management Bureau, 15 of private
enterprises are owned by party members. A survey conducted in 1989 involving
businesspeople in Wenzhou showa that 31,7 of them are party members 17 are
former party cadre Dickson, 2003. This isn’t without controversy. On one hand,
recruitment towards businesspeople indicates the signiicant of China’s middle class and
CCP’s effort to build a connection with them. Simbolically, this conveys the success of
economic modernization. On the other hand, the emergence of businesspeople is a new
phenomenon against CCP’s tradition.
Having had a harmonious relation with businesspeople, CCP re-applied prohibition
for businesspeople to be involved in party’s activities due the Tiananmen Incident in 1989.
Businessman was accused in mobilizing mass that leads to the outbreak of the insident. This
involved material and moral help given to the student demonstrants from Wang Runman,
a former CEO of Beijing Stone Coorporation Shambaugh, 2008; Fewnsmith, 2008.
Tiananmen Incident 1989 becomes a wakeup call for the CCP that businesspeople possess
resources to support democratization movement that may threaten the regime. As
a result, CCP banned businesspeople from joining the party.
However, Chinese businesspeople are well trained citizens that possess resource
for mass mobilization. Government are aware that suspicion and antipathy towards
businesspeople will do more harm than good. This doesn’t only indicates CCP’s
slow response in China’s rapidly changing socioeconomic landscape, but also its failure
in initiating political reform.
Three Represents by Jiang Zemin was
adapted by CCP to adopt China’s newly emerging social strata. CCP proclaims that
it doesn’t only recruit society based on their social standing. CCP’s history conirmed
that there has been some interesting changes regarding cadre recruitment. Having
socialism ideology, proletariat interest wasn’t only represented through labor recruitment;
farmers, soldiers, and students were also noted as party members. Aside of that, CCP
is highly selective in recruiting its members. Businesspeople must comply particular
requirement to be able to join on board.
Since the implementation of Three Represents, business people’s political
participation in CCP continuously improves. From 1993 to 2004, businesspeople
representation in CCP constantly increases; 13 in 1993, 17 in 1995, 20 in 1999, 30
in 2002, and 34 in 2004 Li, 2009. According to CCP’s Organizational Department’s
statistics in 2007, there are 3.180.000 party members working in private sector and
810.000 are entrepreneurs in commercial business and industry China Today, 2007. In
the opening of 18th National Party Congress, 8 November 2012 in Beijing, the number
of businesspeople delegation was noted to increase, from 17 to 24 people Xiajuan,
2012. They run strategic position, such as representative of People’s Congress and
also Chinese People’s Political Consultancy Conference. Other interesting phenomenon
is the kids of senior CCP members such as Jiang Zemin, Zhu Rongji, Hu Jintao, Wen
Jiabao, and Zeng Qinghong that has a career in business sector.
For businesspeople, relation with CCP is a mutualism symbiosis; mutually beneicial.
Business people’s political participation is strongly encouraged by economical motives.
As mentioned in previous researchs, China’s businesspeople aren’t interested
to be political transformation agents, neither thorough internal system change
nor collective persuasion act Li, 2009; Shambaugh, 2008 ; Dickson, 2003; Dickson
Rublee, 2000; Zheng Yang, 2009; Guiheux, 2006. Business people’s concern
is the correlation between political stability and economic growth. Businesspeople are
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interested to contribute in creating stable political environment to foster economic
development. The longer businesspeople are involved in political participation, the more
they believe that the rich and wealthy should be more involved in decision making process
Dickson, 2003. Businesspeople perceive that their involvement in CCP will support
their economic activities. Below are some of the richest Chinese businesspeople that
possess CCP’s membership.
Table 2. Businesspeople with CCP Membership
Name Company
Wealth in US trillion
Robin Li Baidu
14,7 Ma Huateng
Tencent Holdings Ltd. 14,4
Lei Jun Xiaomi
13,5 Wang Jianlin
Dalian Wanda Group 13,2
Li Hejun Hanergy Holdings
13 Zong Qinghou
Hangzhou Wahaha Group 11,7
Guo Guangchang Fosun International
9,5 Liu Yunghao
New Hope Liuhe Co 6
Liang Wengen Sany Group
5,7
Data obtained from ‘China Rich List,’ Forbes, 28 October 2014; ‘China’s Richer
than Romney Lawmakers Reveal Reform Challenge,’ Bloomberg, 7 March 2013; ‘5 of
China’s 10 Wealthiest to Take Part in Key Political Meetings,’ Business Insider, 2 March
2015.
Chinese businesspeople are rarely against decisionpolicy preference government
oficials. Economical
growth excited
businesspeople way more than the prospect of democratization. Businesspeople tend to
support policy innovation that is launched by government instead on initiating new political
policy innovation. Businesspeople are looking forward to be government’s partner instead of
their opposition. Business people’s orientation is economic interest, not politics. CCP’s
existence beneits businessmen ; as China’s government constantly aims economic growth
and boosts investment.
According to Xiaolin Duan, CCP nowadays is no longer a dictatorship regime,
it is a “benign authoritarian” that considers social stability and most suitable policy to
promote economic development Duan, 2015. Businesspeople aren’t looking forward
to change China’s political system . Connection that business people possess enable them
to channel their economical inluence in political activities. This popular support basis
doesn’t only beneit businesspeople but also CCP. Businesspeople are pleased to obtain
political acknowledgement. While CCP elites beneit with the presence of businesspeople
that improves Party’s credibility in people’s eye. The more heterogenic support basis,
the stronger legitimacy a government possess. CCP manages good relation with
businesspeople. Inviting them to seminars and trainings are very simple things to do.
Party elites needn’t put a lot of energy on doing this. Aside from consolidating CCP’s
credibility, businesspeople co-optation also enable CCP to control social process through
involving relevant actors.
BUSINESSPEOPLE CO-OPTATION INTO THE PARTY
Cooptation is an institutional strategy done by CCP to remain in power. Co-optation
is an effort to win support from particular groups through assimilation. In the context of
CCP regime, co-optation is done to manifest political control and nurture its ruling period.
Businesspeople involvement in the party deinitely increases CCP’s recourse, as
there are membership retribution and other administrative requirement. CCP wants
to control China’s society by involving as many relevant actors as possible, including
businesspeople.
During Jiang Zemin’s era, relation between CCP and businesspeople develops
rapidly. Businesspeople’s signiicance in the social ladder brought various political
implications. Instead of marginalizing businesspeople, Jiang Zemin aims to actively
involve them in various political process. Businesspeople’s involvement in CCP was
oficially regulated in party constitution
implemented in July 2001. According to Dickson, around 200.000 businesspeople
apply for membership after Jiang Zemin’s
oficial announcement. This idea was named Three Represents sange daibao, a concept