Abstract

There have been substantial changes in the relationship between the PLA and the emerging private entrepreneurs since China’s reform and opening-up. As a consequence, these relations have shifted from the old model of political divide to a new model of social reconciliation, which could be described by four major indicators: recruiting policy, civil-military mutual support movement, the private sector’s engagement in military procurement and private employers’ participation in the reemployment of veterans. This paper compares the PLA’s ideological and policy changes between the 1979-1991 period and the period since 1992, and finds time lags exist between the PLA’s ideological progress and policy innovation, which results from the gap between the CCP’s intention and social opinion. The PLA under certain circumstances is encouraged by political and military leaders to promote its relationship with the new social stratum. Despite the achievements, value barriers, mutual distrust and new partnership challenges still remain serious obstacles. A complete legal system and new thoughts are essential for further development of their relationship.

Highlights

  • China’s economic transformation from government-dominated economy to market mechanism brought about a new social stratum of private employers and self-employed individuals, usually known as private entrepreneurs

  • During China’s domestic revolutionary war from 1927 to 1949, the ruling class known as the Chiang Kai-shek group, landowners and bureaucratic capitalist entrepreneurs constituted the main targets of class struggle and the enemy of the army led by the Chinese Communist Party (CCP)

  • The risk of punishment and the stigma of being a self-employed individual or private employer motivated many business owners to register their enterprises under other forms of ownership arrangements. (Susan, 1995, pp.4-5) Besides the political discrimination, social bias was clear when compared with the iron-rice-bowl workers, and severe critiques fell on the new social stratum’s fraudulent business behavior and immoral deeds

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Summary

Introduction

China’s economic transformation from government-dominated economy to market mechanism brought about a new social stratum of private employers and self-employed individuals, usually known as private entrepreneurs. Numerous research endeavors have been made by economists to analyze the rising new economic division, few studies have been conducted to examine the relationship between the People’s Liberation Army (PLA) and the emerging private entrepreneurs either in Chinese or international academic community. The great social change since reform and opening-up brought the new social division of entrepreneurs into the agenda of political and military decision-making. The PLA gradually changed its attitude and policy toward this social group. Why the military’s policy and attitude changed and where are the military-entrepreneur relations developing? Why the military’s policy and attitude changed and where are the military-entrepreneur relations developing? This paper conducts a comparative historical analysis of the evolving relations to find out how political and social factors influence the PLA’s policy and tries to identify future challenges in their relations

Adversaries and struggle
Utilization and transformation
Limitations of cultural and motivation perspectives
The approach of political legitimacy
Difficult recognition by the CCP and the PLA
Discrimination from the public and the PLA in dilemma
Visible divide in military-entrepreneur relations
Breakthroughs and reconciliation since 1992
Consensus between the CCP and Chinese society
New standard in conscription
The expanded civil-military mutual support movement
Partnership in procurement
The private sector’s role in veterans’ reemployment
Value barriers and distrust
Unstable partnership in procurement
New recruiting requirements and social justice
Conclusions and implications
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