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Party-Management Relations in Chinese Industries: Some Political Dimensions of Economic Reform

Published online by Cambridge University Press:  17 February 2009

Heath B. Chamberlain
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Enterprise Party–management relations lie at the intersection of two major reform efforts in present-day China–one aimed at decentralizing economic power through the “invigoration” of large and medium-scale industries, the other aimed at deconcentrating political power through the separation of Party from administration. Common to both reform efforts and critical to each is the area of Party–management relations. As an important issue in enterprise reform, on the one hand, it is central to the Chinese leadership's current drive to restructure the urban economy and, indeed, the entire national economy.1 On the other hand, as a crucial test of the leadership's ability to render the Communist Party more authoritative but less intrusive in day-to-day affairs, it is also central to current political reforms. While it might be too much to claim that the issue of Party–management relations is the key link in the leadership's overall modernization drive, unquestionably the failure to resolve the issue will seriously cripple its economic and political reform efforts.

Type
Research Article
Information
The China Quarterly , Volume 112 , December 1987 , pp. 631 - 661
Copyright
Copyright © The China Quarterly 1987

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References

1. This point was stressed in “Decision of the Central Committee of the Communist Party of China on reform of the economic structure” (Adopted by the 12th Central Committee of the Communist Party of China at its Third Plenary Session on 20 October 1984), Beijing Review, Vol. 27, No. 44 (29 October 1984), p. VI.

2. Chinese authorities apparently have no fixed criteria for including industries in the category “large and medium-scale.” The number so classified has been variously set at 3,000 [Foreign Broadcast Information Service, Daily Report, People's Republic of China (hereafter, FBIS-CHI), 15 June 1984, p. 17]; 5,000 (FBIS-CHI, 15 February 1985, p. K6); and 7,000 [Beijing Review, Vol. 29, No. 15 (14 April 1986), p. 26].

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22. Ibid. Art. 10.

23. Shen, Tongwen, “Zijue jieshou dangwei lingdao, zhichi zhigong minzhu guanli” (“Conscientiously accept the leadership of the Party committee, uphold democratic management by staff and workers”), Jingji guanli, No. 10 (10 1983), p. 47.Google Scholar

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25. Ibid.

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30. “Temporary regulations governing the work of directors at state-owned enterprises,” pp. 35–40.

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33. Ibid.

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36. See, for example, the various complaints voiced in Xiang, Jingxi and Yuan, Jinxin, “Qiye dang zuzhi de gongzuo ruhe gaige?” (“How should we reform the work of enterprise Party organizations?”), Jingji guanli, No. 8 (08 1984), pp. 34–36.Google Scholar

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38. See, for example, the discussion in Zhonggong, Benxi gangtie gongsi weiyuanhui, “Handle well the separation,” p. 33.Google Scholar Further evidence of the fear of managers to assert themselves was their apparent reluctance to accept rewards when due; see Zhang, Xiaobei, “Some managers ‘afraid’ to accept just rewards,” China Daily, 1 02 1985, in FBIS-CHI, 1 February 1985, pp. K16–18.Google Scholar

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44. Renmin ribao, 7 June 1984, in FBIS-CHI, 18 June 1984, p. 03.

45. Jingji ribao (Economic Daily), 28 April 1984, in FBIS-CHI, 8 May 1984, p. K7. The six cities were Beijing, Tianjin, Shanghai, Shenyang, Changzhou, and Dalian.

46. Changzhou municipal authorities, for example, promulgated their provisional regulations in August 1984. See “Changzhoushi guoying qiye shixing changzhang fuzezhi de janxing guiding” (“Provisional regulations for the implementation of the factory director responsibility system in state enterprises in Changzhou”) (August 1984), Jingji guanli, No. 12 (December 1984), pp. 37–41 (trans, in JPRS-CEA-85-022, 5 March 1985, pp. 69–83).

47. “Quanmin suoyouzhi gongye qiye changzhang gongzuo tiaoli” (“Regulations on the work of factory directors in industrial enterprises owned by the whole people”); “Zhongguo gongchandang quanmin suoyouzhi gongye qiye jiceng zuzhi gongzuo tiaoli” (“Regulations on the work of basic level organs of the CCP in industrial enterprises owned by the whole people”); “Quanmin suoyouzhi gongye qiye zhigong daibiao dahui tiaoli” (“Regulations on staff/worker congresses in industrial enterprises owned by the whole people”). The texts of these new regulations can be found in Qiye guanli, No. 11 (November 1986), pp. 10–19.

48. Ceng, Zhi, “Gaishan he jiaqiang qiye zhong dang de lingdao” (“Reform and strengthen the Party's leadership within the enterprise”), Hongqi (Red Flag), No. 14(15 07 1985), pp. 14–15.Google Scholar

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51. See, for example, “Provisional regulations for the implementation of the factory director responsibility system in state enterprises in Changzhou,” Art. 9. For a good summary of factory director responsibilities and powers under FDRS, see Li, Jianguo, “Correctly handle the relations,” pp. 19–20.Google Scholar

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58. “Provisional regulations for the implementation of the factory director responsibility system in state enterprises in Changzhou,” Art. 28. A report from one Changzhou enterprise in late 1984 recommends that the factory director not act too rashly in this regard, and that “only in exceptional circumstances where a decision must be made quickly” should he take action against the wishes of the Party committee; Jia, Shunbao, “Changzhang ruhe jieshou dangwei jiandu he shixing minzhu guanli?” (“How the factory director accepts supervision by the Party committee and carries out democratic management”), Jingji guanli, No. 12 (12 1984), p. 30.Google Scholar

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60. “‘Laoda’ yu ‘laowu’” (‘“Top dog‘ and ‘no. 5”’),Renminribao, 22 January 1985.

61. Chengdu changzhang yanjiuhui, “Do well in implementing the factory director responsibility system.”

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69. Li, Jianguo, “Zhengque chuli dang zheng qun sanzhe guanxi” (“Correctly handle the relations among Party, administration, and masses”), Qiye guanli, No. 8 (08 1985), p. 19Google Scholar

70. See, for example, “Dangwei shuji de xin keti” (“A new lesson for Party committee secretaries”), Renmin ribao, 2 February 1985.

71. Wang, Zhounan, “Qingting qiye ‘zhuren’ de husheng” (“Listen attentively to the voices of the enterprise's ‘masters’”), Renmin ribao, 7 09 1984, p. 2.Google Scholar

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73. See, especially, Art. 11 of the 1986 regulations for factory directors of stateowned enterprises, in Qiye guanli, No. 11 (November 1986), p. 12. This provision is discussed in a circular issued by the CCP's central organs and published in ibid. p. 22.

74. For example, Ta Kung Pao, 21 June 1984, p. 6.

75. See the discussion in Ji, Zhong, “Sum up historical experience.”Google Scholar

76. See, for example, Zhang, Zhiqin, “Dangwei shuji de ziren geng zhongle” (“The Party committee secretary's responsibilities are even more heavy”), Renmin ribao, 21 02 1985.Google Scholar

77 Ceng, Zhi, “Reform and strengthen the Party's leadership,”p. 14.Google Scholar

78 Gao, Hongde and Feng, Subao, “Investigation into questions,” p. 28.Google Scholar

79 “Looking back on past events does not mean turning the clock back,” Chongqing ribao (Chongqing Daily), 20 April 1986, in FBIS–CHI, 1 May 1986, p. K4.

80 Song, Shiqi and Wu, Xuelin, “The newly adjusted leadership groups in key enterprises are young and knowledgeable,” Renmin ribao, 12 September 1985, in JPRSCEA-86-001, 2 January 1986, p. 49.Google Scholar

81 China Daily, 15 January 1986.

82 “To exercise expert leadership is the purpose requiring leading bodies to be professionally competent,” Beijing Domestic Service, 28 April 1986, in FBIS–CHI, 5 May 1986, K8.

83 In January 1985, the draft enterprise law was first submitted to the Standing Committee of the National People's Congress (Renmin ribao, 16 January 1985). In a letter to the committee at this time, Premier Zhao, Ziyang suggested that the draft be circulated among provinces, cities and departments of the State Council for further suggestions (Jingji ribao, 16 January 1985). Since then, there has been occasional mention of the enterprise law “still being examined” [Xinhua (in English), 12 September 1985, in JPRS-CEA-85-07, 27 September 1985] and “still being drafted” [Xinhua (in English), 4 April 1986, in FBIS–CHI, 7 April 1986, p. K10]. In November 1986, the draft law was restored to the agenda of the NPC Standing Committee at the urgent request of a number of its deputies [Xinhua (in Chinese), 27 November 1986, in FBIS–CHI, 1 December 1986, p. K7–9]. As of this writing, the law is still being deliberated.Google Scholar

84 See, for example, the criticisms raised by NPC Standing Committee member Su Buqing in January 1985 “Xinhua (in Chinese), 16 January 1985, in FBIS–CHI, 18 January 1985, K7] and, more recently, by deputy Zhang Zhen [Xinhua (in English), 21 November 1986, in FBIS–CHI, 24 November 1986, p. Kl ]. Authorities have steadfastly maintained that mention of the Party's role has no place in state legislation; see, for example, the remarks by Yuan Baohua in Xinhua (in Chinese), 15 November 1986, in FBIS–CHI, 21 November 1986, p. K13.

85 Brugger, , Democracy and Organisation in the Chinese Industrial Enterprise, p. 235.Google Scholar

86 See discussions in Ceng, Zhi, “Reform and strengthen the Party's leadership,” p. 15; “Thoroughly develop the enterprise Party's role”; and Xinhua (in Chinese), 2 July 1985, in FBIS–CHI, 12 July 1985, K6.Google Scholar

87 Sun, Fakui and Zhao, Yuhui, “Preliminary thoughts on several questions,” p. 23.Google Scholar

88 Schurmann, , Ideology and Organization, p. 192.Google Scholar

89 Yuan, Baohua, “Correctly understand the director responsibility system,” Jingji ribao, 8 August 1984, in FBIS-CHI, 22 August 1984, p. K15. The same warning, in precisely the same language was sounded in Lu Zhenmao, “Shixing changzhang fuzezhi shibushi dui minzhu jizhongzhi yuanze de fouding?” (“Does implementing the factory director responsibility system negate the principle of democratic centralism?”), Hongqi, No. 5 (1 March 1985), p. 46.Google Scholar

90 “Thoroughly develop the enterprise Party's role.” Zhuge, Liang was a famous hero of the Three Kingdoms period of Chinese history (A.D. 221–265).Google Scholar

91 “Regulations on the work of factory directors,” in Qiye quanli. No. 11 (November 1986), p. 12.

92 In a recent article extolling reforms in Changzhou enterprises, for example, the authors admit that in some factories the relationship between Party and management “is not well co–ordinated,” and that differences have arisen precisely over the issue of appointing cadres. See Xia, Zhen and Yue, Haitao, “Delegated authority improves efficiency,” Beijing Review, Vol. 29, No. 26 (30 June 1986), p. 24–25.Google Scholar

93 See, for example, Wu, Fumin, “Rang changzhang gengjia ercong muming” (“Giving the factory director a more thorough grasp of the situation”), Renmin ribao, 7 September 1984; Zhonggong Dalian bolichang weiyuanhui (Dalian Glass Factory CCP Committee), “Pochu ‘sange guannian,’ shixian ‘sige zhuanyi,’ jiaqiang he gaishan dang de lingdao” (“Get rid of the ‘three concepts,’ implement the ‘four transfers,’ strengthen and improve Party leadership”), Jingji guanli, No. 12 (December 1984), pp. 27–29; “Shenyang yelianchang dangwei cong liu fangmian rushou zhua gongzuo” (“Shenyang Smeltery Party committee grasps work from six angles”), Jingji ribao, 2 July 1985.Google Scholar

94 Xinhua (in Chinese), 16 January 1986, in JPRS–CEA–86–015, 11 February 1986, p. 3.

95 “Guanyu quanmin suoyouzhi gongye qiye sange tiaoli de xuanquan tigang” (“Propaganda outline regarding the three sets of regulations on industrial enterprises owned by the whole people”), Qiye guanli, No. 11 (November 1986), p. 22.

96 Li, Jianguo, “Correctly handle the relations,” p. 21.Google Scholar

97 Jia, Shunbao, “How the factory director accepts,” p. 30.Google Scholar

98 See, for example, the report and editorial in Renmin ribao, 13 February 1986, in FBIS–CHI, 26 February 1986, pp. Kl–3.

99 Some examples: the Beijing Printing and Dyeing Plant (see Li Xin. “Proceed from the overall situation”); the Shanghai Machine Tool Plant (see Zhang Shihong, “Shanghai Machine Tool Plant”); and the Shashi Cotton Mill[see “Shashi mianfangchang dangwei zhengque chuli dangzheng guanxi” (“Shashi Cotton Mill Party committee correctly handles the relations between Party and administration”), Jingji ribao, 28 June 1985].

100 Peng, Guangrong, “Qiantan shuji de ‘canyu’ he ‘ganyu’” (“Some modest comments on the Party secretary's ‘participation’ and ‘interference’”), Qiye guanli, No. 10 (October 1984), pp. 13–14.Google Scholar

101. For a good but somewhat dated study, see Martin, Lockett, “Enterprise management: moves towards democracy?” in Feuchtwang, S. and Hussain, A. (eds.), The Chinese Economic Reforms (London and Canberra: Croom Helm, 1983), pp. 224–56.Google Scholar

102. Ma, Hong, “Some tentative remarks”;Google Scholar see, also, Jiang, Yiwei, “Lun shehui shehui zhuyi qiye de lingdao tizhi” (“On the socialist enterprise leadership system”), Hongqi, No. 21, (1 11 1980), pp. 9–13.Google Scholar

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104. “Guoying gongye qiye zhigong daibiao dahui zhanxing tiaoli” (“Provisional regulations concerning congresses of workers and staff members in state-owned industrial enterprises”) (13 July 1981), GWYGB, 1981, pp. 489–93 (trans, in FBISCHI, 23 July 1981, pp. K3–7)

105. “Step up ideological and political education and promote democratic management in enterprises,” Jingji guanli, No. 12 (December 1983), in JPRS-CEA-84-W8, 2 February 1984, p. 57.

106. See, for example, the pessimistic assessment in Yu, Yannan, “Seriously carry out the workers' congress system,” Hongqi, No. 20 (16 10 1982), in JPRS, China Report, Red Flag, 6 December 1982 [JPRS, No. 82391], pp. 60–66.Google Scholar

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108. Ji, Zhong, “Sum up historical experience”;Google Scholar also, Jiang, Yiwei, “Zai lun shehui zhuyi qiye de lingdao” (“More on the socialist enterprise leadership system”), Hongqi, No. 24 (16 12 1984), pp. 22–26.Google Scholar

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110. Chen, Bingquan, “Wo guo qiye lingdao zhidu de zhongda gaige” (“A major reform of our country's enterprise leadership system”), Hongqi, No. 9 (1 05 1985), pp. 20–23.Google Scholar

111. Zheng, Haihang, “Guanyu jiaqiang yi changzhang weishou de shengchan, jingying zhihui xitong de jige wenti de tantao” (“Tentative comments on several questions regarding strengthening the production and operations command system under the leadership of the factory director”), Jingji guanli, No. 4 (04 1985), pp. 46–49.Google Scholar

112. For a later argument along similar lines, see Ji, Zhong, “Guoyou qiye de jueceguan you shei lai xingshi” (“Who should exercise decision-making power in stateowned enterprises?”), Jingji guanli, No. 10 (10 1985), pp. 22–26 [trans, in JPRSCEA-86-001 (2 January 1986), pp. 56–63].Google Scholar

113. Quanmin suoyouzhi gongye qiye zhigong daibiao dahui tiaoli” (“Regulations on staff/worker congresses in industrial enterprises owned by the whole people”), Qiye guanli, No. 11 (November 1986), pp. 17–19.

114. See, for example, Zhonggong, Benxi gangtie gongsi weiyuanhui, “Handle well the separation,” p. 31.Google Scholar

115. Yuan, Baohua, “Do a good job of experimenting,” p. 3.Google Scholar

116. Wu, Yanzhou and Yang, Jian, “Quanmin suoyozhi qiye shixing changzhang, shuji jianzhi zhi: zhutan” (“Implementing the system of one person serving concurrently as factory director and Party committee secretary in enterprises owned by the whole people: some preliminary views”), Jingji guanli, No. 12 (12 1985), pp. 27–31 (transl. in FB1S-CHI, 19 February 1986, pp. K.8–15).Google Scholar

117. Similar sentiments are expressed in Xiao, Liang, “Implementing the plant director responsibility system,” p. K7. “After the ‘leftist’ guiding ideology gained ground, the ‘system of one-man leadership’ was inappropriately held to be negating the Party leadership.”Google Scholar

118. See Article 15 of the 1986 regulations on Party organizations in state-owned enterprises, in Qiye guanli, No. 11 (November 1986), p. 15.

119. See, for example, “‘Kaiming shuji’ de wuge zemmaban” (“Five ways to be an ‘enlightened Party secretary’”), Jingji ribao, 8 February 1985; and “Factory managers must place state interests first,” Renmin ribao, 6 March 1985, in FBIS-CHI, 7 March 1985, pp. K4–5.

120. Some of the earlier discussions of FDRS stressed the need for linking the fates of Party secretary and manager. See, for example, Changzhou guo mian yi chang, “How to facilitate relations,” p. 25; and Zhang, Huanming, “Mubiao yu liyi yizhi jiu neng qixin xieli” (“By making objectives consistent with benefits, we can pull together”), Renmin ribao, 24 09 1984. The latter article suggests that if an enterprise shows a loss two years in a row, both the factory director and Party secretary should lose their jobs. However, the 1986 regulations governing Party organizations in enterprises make no provision for reappointing or dismissing Party officials on the basis of enterprise economic performance.Google Scholar

121. See, for example, Shirk, , “The politics of industrial reform,” pp. 196, 220–221.Google Scholar