On 13 September, ‘communist’ China released a list of the top 500 Chinese private companies celebrating their success. In an official report, the All-China Federation of Industry and Commerce, which is a national body serving the private sector, said the top 500 private companies recorded total revenue of USD 5.46 trillion (38.83 trillion yuan), which was 3.94 per cent year-on-year growth.
E-commerce Company JD led the list with 1.05 trillion yuan in revenue, followed by Alibaba Group Holding with 864.53 billion yuan in revenue. Third on the list was the Hengli Group, which is an oil and coal enterprise. The company recorded revenue of 611.75 billion yuan.
Interestingly, the controversial Chinese tech company Huawei Technologies would have topped the 2022 list in R&D investment with over 100 billion yuan but did not participate in the ranking. Tencent Holdings, which owns WeChat, topped the list in R&D investment with 61.4 billion yuan, followed by Alibaba and Baidu Inc.
China to form a new bureau to support the private sector
While China is celebrating “private sector” success, a WSJ report from 4th September suggested that the communist government of China vowed to create a new government body to support the private sector. The new bureau under the National Development and Reform Commission would be tasked to monitor the private sector economy and establish channels for regional communication between the government and the private sector.
Reportedly, economists believe that Beijing failed to do enough to push an economic recovery and a bigger, broader package of stimulus measures was needed to restore the confidence among the general public and private sector.
Notably, the investment in the private sector saw a downfall of 0.5 per cent in the first seven months of 2023. The drop was 0.2 per cent in 2022 during the same period.
Indian communists’ love for China but hate for private sector
While communist China is celebrating its private sector and wants it to flourish, the communist parties of India have often shown a different approach. Notably, China’s progress is well celebrated among the communist circle in India.
In 2021, Communist Party of India (Marxist) leader Sitaram Yechury, Communist Party of India (CPI) leader D Raja and others attended an event organised by the Chinese Embassy to mark 100 years of the Communist Party of China. In 2015, Yechury told The Hindu during his meeting with China’s President Xi Jinping that the Communist Party of China (CPC) highly valued its relations with the CPI(M).
However, when it comes to progressive politics and supporting Indian businesses, the likes of Yechury and D Raja often attack Indian business houses like Adani Group and Reliance Industries (Mukesh Ambani-owned) to target Prime Minister Narendra Modi. It is interesting to see while communists in India work day and night against the private sector, their ideological fathers of China are working extensively to help the private sector grow in their country.
Truth of Modi govt policies – enrich the rich impoverish the poor.
— Sitaram Yechury (@SitaramYechury) March 18, 2022
Unemployment surging, inflation galloping, poverty & hunger rising but Modi cronies amassing more wealth – Adani ₹360K Cr Ambani 123K Cr this year.
Bonanza for BJP political funding. pic.twitter.com/1mO3vzhe0E
So much so there are hundreds, if not thousands, of Indian companies that get their products built in China. Had they tried to do the same in India, it would not be an exaggeration to expect a communist party-backed union or NGO to build a narrative against it.
For those who are unaware, back in the 1970s, China’s communist party decided to grow the private sector. In the 1980s, there was a substantial decrease in the government’s control over businesses.
According to an article in Matthews Asia, the author noted in 1984, there were hardly any private companies, and everything worked for the state. However, almost 90 per cent of the urban population is employed in small, privately owned entrepreneurial firms. While domestic private companies accounted for only 5 per cent of total exports in 2001, it rose to over 50 per cent by 2020. The private companies in China account for over 70 per cent of the technological innovations.
The government cannot provide substantial growth on its own. It required robust support from the private sector. However, communist China’s ideological children in India still live in the 1940s era of communism and want the private sector to die a slow, painful death.
