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Red capitalists peek into China's inner circle
2002-11-13
BEIJING - All Chinese tycoon Jiang Xipei used to worry about as head of cable-maker Jiangsu Far East Co was balance sheets, output forecasts and profit targets.But now the 39-year-old businessman, one of a sprinkling of entrepreneurs attending China's 16th Communist Party Congress, is dodging journalists asking sensitive political questions and calling his mobile day and night to request interviews. The Communist Party is expected to formally embrace private businessmen into its fold this week, turning once-reviled capitalists into the stars of its five-yearly congress. But despite the hype, Jiang says the time is not yet ripe for entrepreneurs to get a seat in the powerful Central Committee, which will choose a new generation of Chinese leaders on Friday. "It's not the right time," Jiang told about two dozen reporters jostling for space in a tight huddle round him. "Some areas are not yet opened to entrepreneurs, that's true. But our time is coming. Now that Jiang has set the direction, the government will work to create a level playing field for us. We're quite satisfied," he added and beat a hasty retreat. President Jiang Zemin -- no relation -- has called for entrepreneurs, once reviled as capitalist exploiters, to be admitted formally into the party at a meeting expected to see Jiang and Premier Zhu Rongji step down from their party posts. A final stamp of approval is likely to be awarded when the party constitution is amended at the conclusion of the congress on Thursday to allow the admission of private businessmen, delegates said. Then, the sky's the limit. Entrepreneurs can eventually join the Central Committee, become cadres or senior government officials, the delegates said -- but not this time round. How times have changed. Entrepreneurs were once vilified as the "runnings dogs of capitalism," with businesses handicapped by a dearth of foreign exchange quotas and an abundance of approval documents. Nevertheless, private companies have emerged as the key drivers of China's economy with some analysts estimating they contribute 50 to 70 percent of gross domestic product. NEW HEROES The number of private businesses in China rocketed to two million in 2001 from 90,000 in 1998, according to state media. "This situation was not predicted by Marx 100 years ago. It was not predicted by Mao Zedong 50 years ago. Even 10 years ago, Deng Xiaoping didn't predict it," said delegate Li Anjian, 49, president of telecoms gear maker Panda Electronics Group Co Ltd. "It's already a very big step to write into the party charter that private entrepreneurs can join. But the Central Committee list is limited," Li, also head of Hong Kong-listed Nanjing Panda Electronics Co Ltd, said in an interview. In an age of red capitalists, few are redder than Panda's Li who joined the party when he was 23 and says proudly his family are all Communists. Or Liu Chuanzhi, a Chinese Academy of Sciences computer technician who started Legend Group Ltd in 1984 with 200,000 yuan ($24,160) and 11 academy co-workers, and turned it into China's largest personal computer maker. Liu said the playing field has levelled considerably for private firms since the early 1990s, but capital was still tight as they are shunned by big state banks and are awaiting the much-delayed launch of a second board to list shares. "I feel that after the 16th Party Congress, China's privately run enterprises will have more room to develop," Liu said. "Don't private entrepreneurs belong to the list of Chinese people? So naturally, they can be members of the vanguard. I feel this is an extremely good thing," he told reporters. Economists say the private sector helps soak up labour in a country struggling to find jobs for millions sacked by wrenching reforms in the state sector, and more political clout could help them push through business-friendly reforms. Panda's Li said the Central Committee candidates list included 10 new representatives from major state-backed companies as a nod to the growing importance of China's business community. "It's possible that private businessmen who own their own assets can become cadres ... It's just a different job. Even I could become a city mayor, it doesn't mean I have to," he said. Entrepreneurs used to eschew political affairs, afraid of bringing unwelcome attention to themselves. Not any more. Far East's Jiang said he was eyeing a Central Committee seat. "From now on, capitalists will definitely be admitted into the Central Committee," he told Reuters. "I will personally try for a seat next time." ($1-8.277 Yuan) (Reuters)
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