Market News International：
Some enterprises in China, including some Sino-foreign joint ventures and wholly foreign-owned enterprises, have been asked to set up Party organizations in recent years. May I ask what the purpose is of this measure? Will this measure have some impact on the normal operation of the enterprises?
Qi Yu:
Thank you, let me answer your question. The Communist Party of China (CPC) is the vanguard both of the Chinese working class and of the Chinese people and the Chinese nation. It is the core of leadership for the cause of socialism with Chinese characteristics. This is the nature of our Party. The establishment of Party organizations inside of basic social units including enterprises is very logical and also our long-standing and consistent practice.
Setting up Party organizations in enterprises is, first of all, consistent with China's laws and relevant regulations. The Company Law of the People's Republic of China clearly stipulates that in a company, a Party organization shall be established to carry out the activities of the Party in accordance with the Constitution of CPC and the company shall provide the necessary conditions for the activities of the Party organization. The Constitution of CPC also stipulates that enterprises, rural areas, schools and other basic units which have at least three full Party members should set up primary Party organizations. Therefore, to set up primary Party organizations in enterprises is not only a consistent practice but also in line with relevant regulations.
Second, establishing Party organizations in enterprises also conforms to the wishes of employees. Currently, enterprises of various kinds in China have more than 140 million employees, who are the main body of the working class in our country. The enterprises' Party organizations pay attention to safeguarding the legitimate interests of all parties of the companies, making known reasonable demands of the workers and office employees, and helping to solve practical difficulties. Therefore, the workers and office employees think that with the Party organizations, they have a "backbone."
Third, setting up Party organizations in enterprises is also conducive to promoting the development of the enterprises' production and operation. The main task of Party organizations in enterprises is to ensure the implementation of the Party's line, guidelines and policies, to guide and supervise the enterprises to abide by the country's laws and regulations, to unite the employees and protect the legitimate rights and interests of all parties, and to promote the healthy development of the enterprises. Many of the Party members in enterprises are the advanced elements of the employees. Most of them are the backbones of production and operation of the enterprises. They can endure hardships and have the courage to sacrifice and tackle difficulties. In their own posts, they are role models in various tasks, and they are an important force in pushing forward the development of enterprises.
Since the 18th National Congress of the Communist Party of China, we have increased our efforts to establish Party organizations and carry out Party building and Party activities in enterprises, and continued promoting the reach of Party organizations and Party work. This is our focus. At this moment, the vast majority of state-owned enterprises and most non-public enterprises, including most foreign-invested enterprises, have established Party organizations. I can give you a few statistics: by the end of 2016, we had 147,000 state-owned enterprises, of which 93.2 percent set up Party organizations; there are 2.73 million non-public enterprises, of which 67.9 percent established Party organizations; and 106,000 foreign-invested enterprises, of which 70 percent established Party organizations.
In practice, we require the enterprises' Party organizations to combine and integrate Party activities with the production and operation of enterprises in order to provide strong support for the healthy development of enterprises. In this regard, it is needless to speak about the work and role of Party organizations in state-owned enterprises. Many non-public enterprises, including Sino-foreign joint ventures and wholly foreign-owned enterprises, highly recognized the Party organizations we set up in them and the activities we carried out there. Many executives and investors of non-public enterprises have said that when the party building is done well, it is not only a productive force, but also a competitive edge of the enterprises. Some executives of foreign-funded enterprises said that the Party organizations can help them to keep abreast of China's policies, resolve labor disputes, and provide positive energy for the development of their enterprises. Most investors welcome and support the Party organizations to carry out activities inside their enterprises.
Yang Xiaodu:
Let me add an example. I used to work in Shanghai. When I attended an executing meeting of the Shanghai mayor, I heard Rick Wagoner, the then-CEO of General Motors, himself say that in his company, the best work was done by the Party members, and the best work order was in the workshops which had Party organizations. So he said, "I hope there will be more Party members in my company, as well as more Party organizations." This is such an example. I heard it with my own ears seven or eight years ago.