The people take over the market
There's a discussion happening in Beijing about altering Party theory to better support the private sector.
The latest idea: Changing the official description of China's economic system from a “socialist market economy” to a “socialist people’s economy.”
- The proposal comes from the All-China Federation of Industry and Commerce – a Party-sanctioned private businesses association – and the China Society for the Study of the Private–Sector Economy (CSPE).
Hu Deping explained that the idea is to offer the private sector the same protections and considerations as state-owned companies by classifying both as part of the "people's economy" (hybsl.cn):
- “If the private economy can be regarded as a part of the people's economy, Party and government organs…whose mission is to serve the people, must treat them equally.”
Who's Hu? Hu is a liberal icon with broad support among liberal-minded officials.
- He's the son of former Party General Secretary Hu Yaobang.
- He also served as vice minister of the United Front Work Department for 10 years.
Get smart: It may sound academic, but any tweak to how the Party describes China's economic system would have huge implications.
- Former leader Jiang Zemin’s introduction of the “socialist market economy” in 1992 gave markets the official thumbs up and unleashed decades of market-oriented reforms.
Get smarter: Any change in Party theory will be introduced at the Central Committee's Third Plenum, which is likely to be held in October.
- As the plenum approaches, we expect the debate over Party theory to really heat up.