ECONOMIC UNDERPINNINGS AND GEOPOLITICAL SETTINGS

893 Internaional Conference on Social Poliics 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 894 Internaional Conference on Social Poliics 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 895 Internaional Conference on Social Poliics 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