CHINAMacroReporter

From Rebel to Ruler: One Hundred Years of the Chinese Communist Party by Tony Saich

Chinese Communist Party: Five Themes

‘In our discussions, you've identified five themes that have been more or less consistent throughout the history of the party but have oscillated between different points on a continuum:’
by

|

CHINADebate

July 1, 2021
From Rebel to Ruler: One Hundred Years of the Chinese Communist Party by Tony Saich

Malcolm Riddell: ‘Would you please tell us a little bit about who you are and about the new book that you've just put out in time for the centennial of the Chinese Communist Party?’

Tony Saich: ‘I'm Tony Saich, and I'm working at the Harvard Kennedy School. I've just published a book, Rebel to Ruler, which is an analytical history of the 100 years of the Chinese Communist Party.’

  • ‘What I try and doing the book is not only go into the entrails of that history, but also try and tease out some of the general themes that we see in terms of the behavior of the party, its consequences, and the way it shapes the thinking of General Secretary Xi Jinping in the current era.’

Malcolm Riddell: ‘In our discussions, you've identified five themes that have been more or less consistent throughout the history of the party but have oscillated between different points on a continuum:’

  1. ‘Establishing a world order to fit China’s needs’
  2. ‘Ambivalence toward foreigners’
  3. ‘Ambivalence toward the private sector’
  4. ‘Putting the collective over the individual’
  5. ‘Control of society, the economy, and governmental practices.’

Theme 1 | Establishing a World Order to Fit China’s Needs

BIG IDEA |  ‘Just think of Deng’s key phrase that we keep going back to about “hiding your strength and biding your time.” Hiding your strength for what purpose and what are you biding your time for?’
‘Well, it was until China could become powerful enough to be able to reassert its authority on the global stage, which is what Xi Jinping has picked up.’

Tony Saich: ‘First, world order. From its origins, the Chinese Communist Party has always been committed to establishing a world order that is more conducive to meeting China's aims and interests.’

  • ‘Now what that is, of course, has changed over time.’
  • ‘While there's continuity in Chinese Communist Party approach, there's also a tremendous adaptability and flexibility over time.’

‘In 1921, it was a bunch of proletarian revolutionaries who were going to engage in global revolution to overthrow capitalism, get rid of the rapacious landlords and capitalists, and create a free China, which would march forward together with its comrades from Soviet Russia.’

‘The period under Deng Xiaoping we tend to think of as being one of where China was integrating into the global order.’

  • ‘Yes, of course that is true. But what was the objective?’

‘Just think of Deng’s key phrase that we keep going back to, about “hiding your strength and biding your time.” ’

  • ‘Hiding your strength for what purpose and what are you biding your time for?’
  • ‘Well, it was until China could become powerful enough to be able to reassert its authority on the global stage, which is what Xi Jinping has picked up.’

‘And although Xi Jinping has no intention of overturning the current global order in its entirety, he certainly wants to shape it, so as it favors China's core interests more directly and more effectively.’

  • ‘Of course, now it has the tools, the power and the capabilities that neither Deng nor Mao could have dreamed of, to meet those objectives.’

Theme 2 | Ambivalence Toward Foreigners

BIG IDEA | ‘That means that foreigners can be used when they're beneficial to help China meet its objectives, but they can easily be removed or criticized when they do not.’
‘China wants the foreigners, but it only wants the foreigners entirely on its own terms.’

Malcolm Riddell: ‘What about the second theme ambivalence toward foreigners.’

Tony Saich: ‘That ambivalence has been there from the founding of the Chinese Communist Party.’

  • ‘When the party was founded in 1921, it was going to do away with the dastardly capitalists and the landlords. It was going to get rid of the foreigners who were working in China and investing in China.’
  • ‘And that's pretty much what it did after 1949. It got the foreigners out of China.’

‘China now needs global engagement to meet its own objectives.’

  • ‘That means that foreigners can be used when they're beneficial to help China meet its objectives, but they can easily be removed or criticized when they do not.’

‘We see, if you run afoul of Chinese policy, you will be hammered.’

  • ‘Look at what's been happening to Australia, for example, when it decided to raise its head above the parapet, only to be shot at by the Chinese authorities.’
  • ‘What about H&M, the store, when it came out somewhat critical about using cotton from Xinjiang?’

‘So yes, China wants the foreigners, but it only wants the foreigners entirely on its own terms.’

Theme 3 | Ambivalence Toward the Private Sector

BIG IDEA | ‘Where China has a need, it will let the foreign enterprises come. It will let them grow. It'll let them invest.’
‘At the same time, it tries to set up its own competitive businesses to rival them.’
‘And if it feels it can compete, slowly but surely, it will squeeze down the space that the foreign businesses have to operate within China.’

Malcolm Riddell: ‘What about ambivalence toward the private sector?’

Tony Saich: ‘After 1949, the party exterminated the private capitalist class.’

  • ‘But it found it still needed the private sector.’

‘You see a continual pattern with Chinese politics and Chinese practices.’

  • ‘If the communist party and the government doesn't have the capability itself, it outsources to society.’

‘For example, it didn't have those capabilities in the tech sector.’

  • ‘So essentially, to start with, outsourced that to many of those coming back from overseas.’
  • ‘It built protective walls around them. It banned Facebook, it banned Twitter, it banned Google, so those enterprises could develop within China unhindered.’

‘But then of course, once they became very powerful and began to accumulate kinds of information that went beyond the state's capabilities, you saw that the party would move to reign it in again.’

‘You now see the reassertion of party committees in the private sector.’

  • ‘You see the party taking a much more direct role in decision-making.’
  • ‘And we see the prime example of that most recently, of course, with Jack Ma and the whole end financial, where the state has clearly moved to reassert its control over that sector.’

‘I think one can extend that also to foreign engagement in China.’

  • ‘Where China has a need, it will let the foreign enterprises come. It will let them grow. It'll let them invest.’

‘At the same time, it tries to set up its own competitive businesses to rival them.’

  • ‘And if it feels it can compete, slowly but surely, it will squeeze down the space that the foreign businesses have to operate within China.’

Theme 4 | The Collective Over the Individual

BIG IDEA | ‘If you look at its ideology and its practices, the party has always preferenced identities related to a collective over that of the individual.’
‘While you might see over time, oscillations in terms of how much license, how much freedom is given to the non-state sector, it's never going to give up control entirely.’

Malcolm Riddell: ‘How about the fourth theme, the collective over the individual.’

Tony Saich: ‘If you look at its ideology and its practices, the party has always preferenced identities related to a collective over that of the individual.’

  • ‘What does that mean in policy terms?’

‘Well, it usually means that the state is preferred over the private, for example.’

  • ‘It means if we look at the economy more specifically, we see an ongoing preference for the state-owned sector or the collective sector over that of private business or individually run business.’
  • ‘While you might see over time, oscillations in terms of how much license, how much freedom is given to the non-state sector, it's never going to give up control entirely.’

‘The experiences under Xi Jinping have been, when he's tried to move to reform, it hasn't worked out very well.’

  • ‘You see this pulling back, to rally the party around the core of the system, which is the state and the collective and the party organizations.’

Theme 5 | Control of Society, the Economy, and Governmental Practices

BIG IDEA | ‘The party abhors space that it can control.’
‘The party will exerting control, in as far as it can, over your business, over your practice. And t's not only what you do in China, but also what you do outside of China.’

Malcolm Riddell: ‘The fifth thing that you mentioned in our discussions was control of society, the economy, and governmental practices. What are your thoughts there?’

Tony Saich: ‘I think that extends from what I just said. One senior Chinese Communist Party member said to me many years ago, "Tony, the party cannot abide space and it abhors a vacuum. And every time we see something like that, we can't stop ourselves. We just have to move in to fill that space, to get rid of the vacuum. Even if we know it's wrong, it's a knee jerk reaction. We just can't stop ourselves." ’

  • ‘That resonates through: The party abhors space that it can control.’
  • ‘And as I said earlier, it might source things out to society to develop up to a certain point, but once it becomes influential or it becomes potentially a threat, the party will move to pull it back in, to reassert its control over that particular area.’

‘One's seen that, as I said, with the high-tech sector. You saw it earlier, for example, with coal production.’

  • ‘When the sector needed more energy, it allowed a lot of these local mines, local state-run mines, private mines to expand their business, of course, with a whole range of increases in the number of people dying from coal mining accidents.’
  • ‘But once that need in the sector began to decline, you saw it moving to shut down those local mines, or you saw them merging those local mines with state enterprises.’

‘It goes beyond that to what we see now under Xi Jinping, a much stronger approach to controlling the discourse and what is discussed in China and what is acceptable things to say and acceptable ways of behavior.’

‘Again, we see that impacting on the private sector. It comes up in different ways.’

  • ‘Do you have a map which shows a mistaken identification of Taiwan, for example, in terms of the way Beijing would see it? Have you made an unfortunate comment about some internal practice within China?’
  • ‘And then those are all game for the party exerting control, in as far as it can, over your business, over your practice.’
  • ‘It's not only what you do in China, but also what you do outside of China.’
From Rebel to Ruler: One Hundred Years of the Chinese Communist Party

More

CHINAMacroReporter

August 24, 2023
Xi Jinping: 'The East is Rising' | Yes. Rising against China
All our careful analyses of PLA capabilities, the parsing of Mr. Xi’s and Mr. Biden’s statements, the predictions as to the year of the invasion, everything – all out the window. This is one you won’t see coming – but one you have to have prepared for.
keep reading
July 23, 2023
‘The U.S. Has Tactics, But No China Strategy’ | Bill Zarit
‘The U.S. needs national review of outward investment to China, but it has to be narrow and targeted and done in conjunction with our allies and partners.’
keep reading
July 10, 2023
‘Is Xi Coup-proof?’ (after the march on Moscow, I have to ask)
What about the guys without guns? So if Mr. Xi doesn’t face a rogue army or a military coup… How about a coup by Party elites?
keep reading
August 1, 2021
'Why China Is Cracking Down on Its Technology Giants'
‘Why, you may ask, is China crushing some of its most innovative unicorns? We’re in a new era led by President Xi Jinping, and politics are in command.’
keep reading
August 1, 2021
'The most significant philosophical shift since Deng'
‘Carnage in China's financial markets signals the beginning of a new era as the government puts socialism before shareholders and regulatory changes rip apart the old playbook. According to some analysts, it is the most significant philosophical shift since former leader Deng Xiaoping set development as the ultimate priority 40 years ago.’
keep reading
July 25, 2021
How China's Middle-Class China is Transforming China and the World
‘Among the many forces shaping China's domestic transformation and its role on the world stage, none may prove more significant than the rapid emergence and explosive growth of the Chinese middle-class.’
keep reading
July 22, 2021
Part 2 | The DiDi VIE (as an example)
‘The prospectus has a diagram, above, of the corporate structure, which looks almost normal. But everything below the double arrow — the actual ride-hailing business, etc. — is slightly askew.’
keep reading
July 22, 2021
Part 1 | 'Owning Chinese Companies Is Complicated'
‘ “Variable interest entities”(VIEs): The problem with this is that it sort of sounds like you’re kidding. But this is a standard method for mainland Chinese internet companies to go public, and the market has come to accept it.’
keep reading
July 22, 2021
Part 3 | Revising the Rules
‘The Chinese government could declare “all these VIE contracts are actually a disguised form of foreign ownership, which is not allowed by the rules, so they are all void and your Didi and Alibaba shares are worthless.” ’
keep reading
July 22, 2021
China: Signals Blinking Red & Oops, We Missed the Risks
I had intended to make this issue all about ‘Variable Interest Entities’ (VIEs) and the emerging risks to about $1.8 trillion dollars’ worth of Chinese shares listed on U.S. exchanges – that is, 4% of the capitalization of the U.S. stock markets.
keep reading
July 22, 2021
'Crackdown on US listings: Will China close $1.6tn VIE loophole?'
‘If Chinese authorities start to question “Variable interest entities”(VIEs), amid the crackdown that has already battered ride-hailing company Didi Global -- another VIE user -- the resulting loss of investor trust could send shock waves through global financial markets.’
keep reading
July 18, 2021
Why the U.S. Lacks Leverage over China
During the celebration of the Chinese Communist Party’s Centennial celebration, Mr. Xi stood in the same place on the balcony facing Tiananmen Square where Mao Zedong stood when he announced the founding of the PRC; Mr. Xi wore a gray Mao suit, among a sea of blue western suits; and he centered himself right above the portrait of Mao, who is similarly attired.
keep reading
July 18, 2021
'I will aim for Mao's Status.'
‘There on the gate was Xi Jinping, Chinese president and party general secretary, in a gray Mao suit. Just below his feet was the portrait of Mao Zedong, also dressed in a gray Mao suit.’
keep reading
July 18, 2021
'US warns companies of risk of doing business in Hong Kong'
“In the face of Beijing’s decisions over the past year that have stifled the democratic aspirations of people in Hong Kong, we are taking action,” said Antony Blinken, US secretary of state. “Today we send a clear message that the US resolutely stands with Hong Kongers.”
keep reading
July 18, 2021
'Biden’s Warning on Hong Kong'
‘The pretense of Chinese and Hong Kong authorities is that their crackdown on the rule of law and dissent will have no effect on Hong Kong’s viability as an international center for trade and finance.’
keep reading
July 18, 2021
'China Plans to Exempt H.K. IPOs From Cybersecurity Reviews'
‘China plans to exempt companies going public in Hong Kong from first seeking the approval of the country’s cybersecurity regulator, removing one hurdle for businesses that list in the Asian financial hub instead of the U.S.’
keep reading
July 18, 2021
Hong Kong and the Limits of Decoupling
‘The United States’ inability to make China regret—much less reverse—its transgressions in Hong Kong suggests that financial separation, sanctions, and economic barriers are less reliable tools than many in Washington believe.’
keep reading
July 15, 2021
Part 1 | 'Joe Biden is determined that China should not displace America'
‘Biden’s emerging China strategy, while still protean, sounds of a kind with Mr Doshi’s prescription for “blunting and building”.’
keep reading
July 15, 2021
The Biden Doctrine and Its Discontents
President Biden has framed China as a threat both to the U.S. and the liberal world order.
keep reading
July 15, 2021
Part 2 | Joe Biden is determined that China should not displace America
‘Mr Biden’s aides invariably start any discussion of China strategy with the need to restore American greatness after decades of decline.’
keep reading
July 15, 2021
'What's Wrong with Biden’s new China doctrine'
‘Mr Biden’s aides invariably start any discussion of China strategy with the need to restore American greatness after decades of decline.’
keep reading
July 8, 2021
Didi: Xi Surprises Us Again
Beijing shocked the financial world when it pulled the rug out from under Didi days after its IPO on the New York Stock Exchange and also announced new regulations reigning in overseas IPOs and Chinese companies already listed.
keep reading
July 4, 2021
The Chinese Point of View
Here are a few of my thoughts on the importance of Wang Jisi’s ‘The Plot Against China.’ Yuen Yuen Ang’s ‘The Evolution of Chinese Corruption’ speaks for itself - but note especially how Mr. Xi's anti-corruption campaign could hurt China's economy. I have now lived long enough that when a friend complains about his or her spouse, I say to myself, ‘There are no doubt two sides to this story.’
keep reading
July 4, 2021
'How Corruption Powers China's Economy'
‘China has managed to sustain four decades of economic growth despite levels of corruption that even Xi has described as “grave” and “shocking.” Why does it seem to have bucked the trend?’
keep reading
July 4, 2021
'How Beijing Sees U.S.-China Relations'
‘In Chinese eyes, the most significant threat to China’s sovereignty and national security has long been U.S. interference in its internal affairs aimed at changing the country’s political system and undermining the CCP.’
keep reading
July 1, 2021
Five Themes that Point to Where the Chinese Communist Party & China are Heading
As the Chinese Communist Party begins its second century, it’s useful to identify enduring patterns that might aid us in understanding China today and the directions it might be heading.
keep reading
July 1, 2021
From Rebel to Ruler: One Hundred Years of the Chinese Communist Party by Tony Saich
‘In our discussions, you've identified five themes that have been more or less consistent throughout the history of the party but have oscillated between different points on a continuum:’
keep reading
July 1, 2021
'From Rebel to Ruler': Tony Saich on Chinese Communism at 100
‘At so many points during its century-long existence, the CCP appeared to be in its death throes, whether as a result of external attack or self-inflicted internal strife.’
keep reading
June 27, 2021
European Chamber in China: 'Business Confidence Survey'
A mere 9% of European companies are considering moving any current or planned investment out of China, the lowest level on record. Instead, companies are strengthening their positions in JVs, onshoring supply chains and increasing spending to secure market share. The ambition not only to stay but also to expand their China footprint is more than justcapital flooding in due to optimism about growth. Companies are taking action to secure their operations in China and mitigate exposure to geopolitical trends in order to have a better chance of navigating a future that looks to be fraught with risk, at least in the near- to medium-term.
keep reading
June 27, 2021
'How China & America Should Compete'
‘China and the West urgently need a new framework for understanding the state of the world and their place in it. Such a framework must recognize, first and foremost, that properly regulated economic competition is not a zero-sum game.’
keep reading
June 27, 2021
'Jimmy Lai & the Death of Free Speech in Hong Kong'
Jimmy Lai’s tabloid, the Apple Daily, with its peculiar blend of scandal, gossip, and serious political reporting, was Hong Kong’s indispensable voice of free speech. Now that voice has been silenced, and Lai is in prison with others who tried to protect the right of Hong Kong’s citizens to speak and write freely, to be ruled by law, and to vote for their own autonomous government. Their politics are diverse Yet they stand together. When freedom is under siege, people cannot afford the narcissism of small differences that is tearing apart liberal politics in countries where people think democracy can be taken for granted.
keep reading
June 27, 2021
'European Companies in China: Between Decoupling and Onshoring'
‘Instead of leaving the market, European companies are exploring ways to separate their China operations from their global ones.’ ‘Following the Covid-19 outbreak, European companies in China spent the first few months of 2020 solemnly appraising their investment strategies.’
keep reading
June 24, 2021
'Apple Daily closed, but press freedom stays in Hong Kong'
‘Freedom of the press is a good thing. The West's freedom of speech must be consistent with national interests and public security.’
keep reading
June 24, 2021
Bitcoin’s growing energy problem: ‘It’s a dirty currency'
“Bitcoin alone consumes as much electricity as a medium-sized European country.”
keep reading
June 24, 2021
'China steps up crackdown on bitcoin mining industry'
‘China’s latest intervention places further pressure on what was once one of the world’s most vibrant markets for trading and mining digital currencies.’ ‘It comes at a time when many governments are scrutinising the industry’s effect on the environment and determining the types of financial oversight that should be applied to cryptocurrencies.’
keep reading
June 24, 2021
'Congress on China: Then and Now'
‘With the Senate voting on June 8, 2021, to adopt the United States Innovation and Competitiveness Act, it is safe to say that this is the most comprehensive action by Congress on China policy EVER.’ ‘The language of the United States Innovation and Competitiveness Act is about a long-term competition with China as opposed to war with an enemy.’
keep reading

Heading

Lorem ipsum dolor sit amet, consectetur adipiscing elit. Suspendisse varius enim in eros elementum tristique. Duis cursus, mi quis viverra ornare, eros dolor interdum nulla, ut commodo diam libero vitae erat. Aenean faucibus nibh et justo cursus id rutrum lorem imperdiet. Nunc ut sem vitae risus tristique posuere.