The CCP also maintains
SOEs (State-Owned Enterprises) accounting for about 25 percent of GDP. SOEs operate in all industries, including manufacturing, mineral extraction, banking, and even hotels and restaurants. The CCP appoints the managers and supervisors of SOEs and directs their decision-making. In return, SOEs receive a number of benefits, such as state subsidies, easier access to capital from state-owned banks, and raw materials from state-owned mining companies. SOEs also get policy support, tax benefits, and a favorable regulatory framework. With the government providing these advantages, SOEs dominate strategic sectors such as energy, telecommunications, banking, and transportation.
Private companies of a certain size are required to maintain a party cell, a CCP committee responsible for implementing and maintaining party policies, adhering to political ideology, and upholding party discipline. Party committees influence decision-making and strategic planning, as well as the hiring, firing, and promoting of personnel.
Even foreign-owned companies and joint ventures and partnerships with foreign companies are required to maintain a party cell. Furthermore, the CCP maintains lists of sectors that are either closed to foreign companies or only open through a joint venture with a Chinese partner.
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