The CCP has utilized a dual approach in co-opting the business sector within its political control. This includes both entrepreneurs joining the Party as members and legislators, as well as the CCP itself forming organizations within private enterprises to oversee its internal actions. The CCP does this not only to prevent any sort of alternative power center but to also glean important insight and support from business leaders in China. This model can be described as 'state corporatism', geared towards extending control as opposed to a need to balance interests. Motivating the entrepreneurial class to be incorporated within the party is both self-interest and fear. By being a part of the CCP, the business community can benefit from state support. The state's complete authority within the economy necessitates friendly relations to ensure smooth functioning of their economic interests. The CCP also uses its controlling levers to force business leaders and enterprises to follow the party line. After
Jack Ma of
Alibaba openly criticized state control of the banking sector at the Shanghai Bund Summit in October 2020, China's market regulator announced the launch of an
antitrust inquiry into Alibaba. This has repeated with the former chairman of the
Anbang Insurance group, Wu Xiahao, who was sentenced to 18 years in prison Economic and political elites may serve in internal committees or even "serve as delegates in legislative congresses", bringing their experience and expertise to strengthen CCP functioning and administration. Within the CCP, licensed associations for independent entrepreneurs have also been created, which coordinate actions between entrepreneurs and members of the CCP. Supporters viewed it as a further development of
socialism with Chinese characteristics Certain segments within the CCP criticized the Three Represents as being un-
Marxist and a betrayal of basic Marxist values. The theory officially is continuation and development of
Marxism–Leninism,
Mao Zedong Thought and
Deng Xiaoping Theory. Jiang said that by representing Chinese people in three levels, the party used the interests and demands of the overwhelming majority of the people to replace the specific interests of people from different quarters, especially the class nature of the working class. As Xiao Gongqin argues, the innovation of the "Three Represents" theory was meant to complete the historical ideology transformation of CCP from a revolutionary party to a ruling party. The CCP can keep its legitimacy under the 'socialist market economy' or any system that is conducive to the development of advanced productive forces, without promoting any revolutionary movement or keeping the ideal of egalitarianism. The theory is most notable for allowing
capitalists, officially referred to as the "new
social strata", to join the party on the grounds that they engaged in "honest labour and work" and through their labour contributed "to build[ing] socialism with Chinese characteristics." These critiques helped fuel the rise of the
Chinese New Left movement. At the time Jiang announced the theory, most entrepreneurs who were members of the CCP had been party members before starting their businesses. This change allowed for a new cohort of party members who could join after having had success in business. Academic Pang Laikwan describes the Three Represents as legitimating privately owned enterprises in the context of the socialist market economy. Recently the co-optation strategy has been retracted by the CCP. Since
Xi Jinping succeeded as the CCP general secretary and took power in 2012, many elites and business owners have been under threat from the CCP's
reform spree, which includes the implementation of the
anti-corruption campaign and strict guidelines on many technology companies. In other words, under
Xi's administration, the co-optation strategy has been undermined, though it is still relevant towards understanding the CCP's membership demographic.
Assessment of the strategy The co-optation strategy has been considered widely successful, which is reflected in the steady increase of businesspeople into CCP membership; from 13% of CCP members in 1993, to 20% in 1999, and then to 34% in 2004. The co-optation strategy is considered to be a successful attempt by the CCP to assure their government's survival. During Jiang Zemin's term as General Secretary of the CCP, and subsequently under the
Hu Jintao and
Wen Jiabao administration, there has been rapid economic growth in China, which scholars argue could partly be a result of the CCP's adoption of the co-optation strategy. From 1979 to 2018, China's annual real GDP growth averaged 9.5%, compared to 6.7% from 1953 to 1978. The introduction of the co-optation strategy to the CCP has created division within the party over whether this represented a break away from the party's ideology. Opponents of co-optation have argued that the inclusion of entrepreneurs within the party represents the interests of private capital triumphing over those of the working class, otherwise known as the proletariat. By allowing those who exploit the proletariat to enter the Party, the CCP is breaking from its traditions in favor of private enterprises and wealth accumulation. The co-optation of private enterprises into the CCP has allowed for massive economic growth within the country, with many CEOs of these enterprises generating vast amounts of wealth. The role of entrepreneurs within China is rapidly changing and many of its richest citizens are attempting to leave the country with their wealth. This is a direct result of Xi Jinping's decision to restrict the excess wealth of these individuals, with many being pressured into donating billions to social causes like low-income housing. Those who have fallen afoul of the state, often due to
corruption and refusal to pay taxes, face lengthy prison sentences or steep fines. This, coupled with the effects of
COVID-19 lockdowns in China, has led to a massive drop in the wealth of entrepreneurs and many are looking to flee the country, taking large parts of the Chinese economy along with them. Under Xi Jinping's leadership, the CCP has begun to move away from the co-optation strategy it has previously employed, instead beginning to favour an approach that aims to promote
common prosperity throughout China. == See also ==