Doing Business in China For Dummies®

Party On: Understanding Who Controls the Country

Communism is an ideology that stands for the redistribution of resources: from each according to ability, to each according to need. In practice, one political party controls the social, political, and economic activity of the country.

The Constitution of the People’s Republic of China states that the Chinese Communist Party (CCP) is the ruling party, but it leaves room for the establishment of others. The CCP is supposed to get its ideas from the people. In reality, it’s more of a top-down than bottom-up government. China has more than one political party, but the other parties exist to bolster the CCP.

The government structure has three bodies:

✓	The Chinese Communist Party (CCP): Establishes policies and direction for the country
✓	The state: Implements and carries out the policies through various branches, councils, and ministries
✓	The military (People’s Liberation Army, or PLA): Provides security and enforcement on a national level

Overall, the CCP runs China’s national, provincial, and local governments as well as the military. The following sections fill you in on government roles and some of the major players. The structure can be confusing for foreigners, but the chart at www.uschina.org/index/browse.php?cat=166 can help clarify. ...