business environment in china mkt3651 lecture 4 political system

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Business Environment in China MKT3651 Lecture 4 Political System

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Page 1: Business Environment in China MKT3651 Lecture 4 Political System

Business Environment in China

MKT3651Lecture 4

Political System

Page 2: Business Environment in China MKT3651 Lecture 4 Political System

I. The Communist Party of China

Page 3: Business Environment in China MKT3651 Lecture 4 Political System

中國共产党全国代表大會

中央委員會

總書記

地區級黨委會(市、區)

省級黨委員(直轄市、省、自治區)

縣級黨委會(縣、鄉)

中央政治局 Political Bureau)

中央書記處( 7 )

常務委員會 Standing Committee幹部教育組黨史工作組黨建設工作

思想宣傳工作組台灣工作組對外宣傳組外事小組財經小組

光明日報人民日報

中央黨校文獻研究室黨史研究室

紀律檢查委員會機關工作委員會保密委員會政策研究室政法委員會對外聯絡部統一戰線部中央宣傳部中央組織部中央辦公廳

中央

直屬

機構

中央軍事委員會中央紀律檢查委員會

CPC National Congress

PRC Central Military CommissionCPC Central Commission for

Discipline Inspection

Secretariat of the Central Committee

'CPC members – Provincial /Municipal/Region./County Level

Ministries & Commision

CPC Central Committee

General Secretary

Communist Party Structure

Page 4: Business Environment in China MKT3651 Lecture 4 Political System

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.

Page 5: Business Environment in China MKT3651 Lecture 4 Political System

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.

Page 6: Business Environment in China MKT3651 Lecture 4 Political System

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.

Page 7: Business Environment in China MKT3651 Lecture 4 Political System

The Politburo Standing Committee

Page 8: Business Environment in China MKT3651 Lecture 4 Political System

The Politburo Standing Committee

The current members of the 16th PSC are (as of 2003): Hu Jintao ( 胡錦濤 ) - President of the Peopl

e'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

Page 9: Business Environment in China MKT3651 Lecture 4 Political System

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 St

ate Council of the People's Republic of China

Jia Qinglin ( 賈慶林 ) - Chairman of the People's Political Consultative Conference

Page 10: Business Environment in China MKT3651 Lecture 4 Political System

The Politburo Standing Committee

The current members of the 16th PSC are (as of 2003): (Con’t) Zeng Qinghong ( 曾慶紅 ) - Vice-Preside

nt of the People's Republic of China

Huang Ju ( 黃菊 ) - Vice Premier, State Council of China

Page 11: Business Environment in China MKT3651 Lecture 4 Political System

The Politburo Standing Committee

The current members of the 16th PSC are (as of 2003): (Con’t) Wu Guanzheng ( 吳官正 ) - Secretary o

f the Central Commission for Discipline Inspection

Li Changchun ( 李長春 ) - no other positions held, known to many as the propaganda chief

Page 12: Business Environment in China MKT3651 Lecture 4 Political System

The Politburo Standing Committee

The current members of the 16th PSC are (as of 2003): (Con’t) Luo Gan ( 羅幹 ) - State Councilor, Politi

cal and Legislative Affairs Committee secretary

http://app1.chinadaily.com.cn/highlights/party16/structure2.html

Page 13: Business Environment in China MKT3651 Lecture 4 Political System

The Politburo Standing Committee

Standing Committee of the Political Bureau of the CPC Central Committee

Page 14: Business Environment in China MKT3651 Lecture 4 Political System

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 self-perpetuating.

Page 15: Business Environment in China MKT3651 Lecture 4 Political System

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.

Page 16: Business Environment in China MKT3651 Lecture 4 Political System

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 P

arty 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).

Page 17: Business Environment in China MKT3651 Lecture 4 Political System

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

Page 18: Business Environment in China MKT3651 Lecture 4 Political System

The Discipline Inspection Commission

The Discipline Inspection Commission – anti-corruption force among party cadres. The Discipline Inspection Commission of the Communist Par

ty 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 

Page 19: Business Environment in China MKT3651 Lecture 4 Political System

II. The Government

Page 20: Business Environment in China MKT3651 Lecture 4 Political System

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.

Page 21: Business Environment in China MKT3651 Lecture 4 Political System

1. State Council ( 國務院 ) Although formally responsible to the NPC in conducting a wide ra

nge 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.

Page 22: Business Environment in China MKT3651 Lecture 4 Political System

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.

Page 23: Business Environment in China MKT3651 Lecture 4 Political System

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.

Page 24: Business Environment in China MKT3651 Lecture 4 Political System

1. State Council The current members of State Counci

l:

Wen Jiabao ( 溫家寶 ) – Premier

Page 25: Business Environment in China MKT3651 Lecture 4 Political System

1. State Council The current members of State C

ouncil:

Vice Premiers Huang Ju ( 黃菊 ) Wu Yi ( 吳儀 ) Zeng Peiyan ( 曾培炎 ) Hui Liangyu ( 回良玉 )

Page 26: Business Environment in China MKT3651 Lecture 4 Political System

政府 Government 共產黨 CPC

國家主席 State President

全國人民代表大會 National People Congress

最高人民法院 Supreme PeoplesCourt

最高人民檢查院 Supreme Peoples ProcuratorateOf China)

國務院 State Council

各部Ministries & Commission

國防部 Ministry of National Defence

人民解放軍 People Liberal Army (PLA)

共產黨 CPC

政治局 Political Bureau

中央委員會 Standing Committee

軍事委員會 Central Military Commission

選出

選出 Election司法機構

Relationships between Gov’t & Party

Page 27: Business Environment in China MKT3651 Lecture 4 Political System

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 )

Page 28: Business Environment in China MKT3651 Lecture 4 Political System

2. Local Government Categories and Hierarchies

Administrative Hierarchy of China (1996)

Page 29: Business Environment in China MKT3651 Lecture 4 Political System

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.

Page 30: Business Environment in China MKT3651 Lecture 4 Political System

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.

Page 31: Business Environment in China MKT3651 Lecture 4 Political System

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.

Page 32: Business Environment in China MKT3651 Lecture 4 Political System

III. The Four Generations of Leaders

Page 33: Business Environment in China MKT3651 Lecture 4 Political System

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 Liberatio

n (解放戰爭 ) little overseas education

Page 34: Business Environment in China MKT3651 Lecture 4 Political System

The Second Generation Deng Xiaoping (鄧小平 ), Hu Yaobang ( 胡耀邦 ), Hua G

uofeng ( 華國鋒 ) Similar experiences as the first generation (junior roles);

leading positions during the war

Page 35: Business Environment in China MKT3651 Lecture 4 Political System

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

Page 36: Business Environment in China MKT3651 Lecture 4 Political System

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

Page 37: Business Environment in China MKT3651 Lecture 4 Political System

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

Page 38: Business Environment in China MKT3651 Lecture 4 Political System

Three sources of power

Military Affairs Commission People's Liberation Army (PLA) Central Military Commission: Hu Jintao

Page 39: Business Environment in China MKT3651 Lecture 4 Political System

Issues faced by the fourth generation leaders

On economic growth Improvement of SOEs – export-led growth – expansion of domest

ic 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.)

Page 40: Business Environment in China MKT3651 Lecture 4 Political System

Issues faced by the fourth generation leaders

On health and education containment of AIDS crisis modernization and expansion of China's educati

onal system On law, order and human rights

legal aid programs as a “human right” “strike hard” Campaign ( 嚴打 ) rule by law

Page 41: Business Environment in China MKT3651 Lecture 4 Political System

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.

Page 42: Business Environment in China MKT3651 Lecture 4 Political System

End.