Changes Of States-owned Enterprises Leadership Of The CCP

The earliest public enterprises established by the Chinese Communist Party(CCP) were located in central soviet area. During that war time, these enterprises belong to the CCP`s army or the Chinese Red Army, the management system of them were also semi-militarized. At that time, most of the CCP leaders in center soviet area were lack of management training and bare have no related knowledge and experience. Because of that, management of public enterprises in central soviet area are chaotic. Learning from One-head Leadership System from Soviet Union, the public enterprises implemented the triumvirate leadership system. Under this system, a fresh leading committee was composed of party organization, factory director and labor union. The party was in charge of political thought of the whole factory, factory leader is responsible for daily operation of the firm, while labor union organized workers into producing and managing. Liu Shaoqi is discerning, as he realized the three powers in public enterprises of soviet area. However, in fact, internal relationship of the soviet area are more complex than image, which could not be defused by the triumvirate leadership system.According to internal condition of the central soviet area and Yanan, the triumvirate leadership system barely develop its function. These public enterprises were mainly in the hands of directors and labor union, because of party organization is not fully established in enterprises. The factory director responsible for arranging productive tasks, while labor union in charge of working, both have the property of natural resistance. Everyone prefer to less work, but more enjoyment, workers is no exception, as a result, when the labor union dominate salary recommendations, workers of public enterprises in Yanan sometimes are paid more than managers, this high operation cost is unbearable to any firms. Although the revolution is not a dinner party, but the revolution of enterprises need to “eat”. If a enterprise could not guarantee the profits, it would not survive for a long time.In order to guarantee the daily operation of public enterprises, Zhang Wentian, Deng Fa and other central government leaders put forward the unified reform plan. In this reform, any forces include labor union and party organization are required to obey to the leadership of factory directors. This administrative unitary has improved efficiency of enterprises` decision-making, production efficiency and company profits, however, it weaken factory workers` benefits and position and the leadership of CCP on public enterprises as well. As for Mao Zedong and Liu Shaoqi, this type of enterprise pursuit profits do not have differences compare with the capitalism. As a socialist public enterprise, it should obey the party`s emotion and reflect the status of factory workers. As a result, Liu Shaoqi has emphasized the importance of democratic reform of public enterprises.After the establishment of People Republic China, different CCP central leaders has put forward various of management system of State-owned enterprises from different views. North China Bureau, represented by Liu Shaoqi focused more on the participation of the factory leaders and workers, as a result, they insist of collective leadership by Party committee in state-owned enterprises. On the other hand, Northeast China Bureau, represented by Gao gang paid more attention to firms` production efficient, they believe the system of overall responsibility by factory manager is more suitable for enterprises. As the supreme leader of the communist party of China, Mao Zedong prefer Liu`s view, however, in order to balance the power between Liu and Gao, Mao allow the coexist of the two systems.In 1954, as Mao was asking the whole country learning from the Soviet Union, North China Bureau, East China Bureau and so forth has signified give up the collective leadership by Party committee in state-owned enterprises, in turn to implement Soviet Union. However, only after more than two years, criticism of factory director responsibility system is becoming increasingly more, as Mao Zedong has a lot of complaints about the Soviet system. Consequently, factory director responsibility system was abandoned, the factory director responsibility system under the leadership of the party committee was implemented again. Later in the “great leap forward movement”, the factory director responsibility system was criticized as part of the Soviet revisionist, because of the divorce of China and Soviet Union. Under the system of factory director responsibility under the leadership of the party committee, the party committee usually control everything of the factory, the party committee is not only the decision maker, but the performer. Although Mao had advocated “workers join administration and leader join the production, in order to break the gap boundary between workers and managers, but until the end of “the Great Cultural Revolution”, factory director responsibility under the leadership of the party committee had not been fundamentally impacted.