China's party-state and the private business sector: ‘Dog wags tail’ or ‘tail wags dog’?

Abstract

The private business sector has come to play an important role in China's economy, and the Chinese communists have been forced to reassess both capitalism and their former class enemies, the capitalists. Most dramatically, the Communist Party decided to let capitalists become members in 2002, which definitively opened the doors for direct political influence for the old arch-enemy. The party-state had already co-opted private business people previously through business ownership, by allowing them into people's congresses and village committees, and through business organizations. However, the Party maintained control throughout. While exercising command, it also appears to have a genuine interest in creating a new, more professional and business-minded elite based on the philosophy that there is a convergence of interests between the party-state and business people. At this stage, the Party behaves as the ‘dog’ wagging the ‘tail’, i.e. the private sector. However, the article argues, in light of the growing economic and political influence of private business, there is a need to be acutely attentive to an alternative future scenario in which the ‘tail’ may attempt to ‘wag the dog’. The article presents data and an analysis to support this argument, though it is still too premature to be affirmative about it.