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Central Directive on FIC Work Interpreted


Ina recent interview with the local press, the United Front Work Department of the CPC Central Committee interpreted the Proposals on Strengthening and Improving the Work of Federations of Industry and Commerce Under New Situations released by the CPCCC and the State Council in September. The document, which defines the roles and nature of the federations of industry and commerce and broaches up a series of new viewpoints, policies and measures, is expected to guide the work of the federations of industry and commerce both today and in the time to come.

Q: What is the significance of strengthening and improving the work of federations of industry and commerce under the new situations, as stated by the "Proposals"?

A: The "Proposals" stresses the importance of the work of the federations of industry and commerce in relation to the overall tasks of the Party and the country and underlines the unique advantages of the federations of industry and commerce.

To be specific... the work of the federations of industry and commerce is a key part of the CPC"s endeavors in strengthening the united front and economic growth of the country. As a liaising body for various types of enterprises, groups and individuals engaged in commerce and industry in the non-publiceconomic sector, the federations of industry and commerce play an increasingly distinctive role in assisting the government in managing social and economic affairs and in serving non-publicenterprises regarding their corporate operations and management. Thanks to their extensive and friendly cooperation with their overseas counterparts, the federations of industry and commerce act also as an important channel for conducting foreign trade and economic activities and people-to-people diplomacy. In their capacity of united front organizations, they bear the responsibility of uniting and assembling the individuals of the non-publiceconomic sector.

Consequently, against the backdrop of building a moderately prosperous society and facilitating the socialist modern construction, it is necessary to strengthen and improve the work of the federations of industry and commerce in order to accomplish the following tasks: 1. persist in and perfect the country"s fundamental economic system, 2. promote the scientific development of its non-publiceconomy, 3. adapt to the change of government functions, 4. improve the socialist market economic system, 5. carry out the open-up policies and increase the openness and development level of the country"s economy, 6. consolidate the patriotic united front and strengthen the Party"s leadership in the non-publiceconomic sector.

Q: What are the guiding principles of the work of the federations of industry and commerce?

A: The principles... the Theory of Socialism with Chinese characteristics; the Deng Xiaoping Theory and "Three Represents"; the Concept of Scientific Development; the leadership of the CPC; the basic economic system of the Chinese socialism at the preliminary stage; the spirits of solidarity, service, guidance and education; improving the federations" ideological education, organization, working methods, and systems, as well as their attraction, influence and administrative enforcement ability.

The targets... to build the federations of industry and commerce into the people"s groups and chambers of commerce with political determination, distinct characters, sound system, efficient service and outstanding performance, which will contribute to promoting the healthy development of non-publiceconomy and individuals, building a moderately well-off society, persisting and developing socialism with Chinese characteristics, and the regeneration of the Chinese nationality.

Q: What are the nature and fundamental characters of the federations of industry and commerce, according to the "Proposals"?

A: The federations of industry and commerce are the people"s groups and chambers of commerce under the leadership of CPC with the enterprises and individuals of the non-publiceconomic sector as their main body. They are a bridge for the Party and the government to liaise with the individuals of the non-publicsector, and an assistant to the government in managing and serving the non-publiceconomy. The federations exert a great influence in the country"s economic, political, cultural and social lives, and play an irreplaceable role in promoting and guiding the healthy development of the non-publiceconomy and of the individuals of the sector.

The federations of industry and commerce are characterized by the integration of their engagement in the united front, economic life and people.

To be specific... they are united front organizations led by the Party, which determines their political orientation, status and functions; then the federations are composed of the industrial and commercial circles and individuals which directly serve the economic construction; thirdly, they have the functions and nature of a chamber of commerce and therefore their organizing methods and working mechanisms are different from the government agencies.

Q: Who are the targets of the work of the federations of industry and commerce and what are the basic tasks?

A: Their targets of work include private enterprises, corporations with limited liabilities and share-holdings companies controlled by those from the non-publicsector, investment enterprises from Hong Kong and Macau, investors in private enterprises, small business owners, individuals from Hong Kong and Macau who invest in the mainland, and those who were previously engaged in industry and commerce.

The federations" primary tasks include: 1. promoting ideological and political construction amongst the individuals of the non-publiceconomic sector; 2. participating in political consultation and democratic supervision; 3. facilitating trade and economic exchanges and cooperation; 4. promoting the construction of trade unions and chambers of commerce to serve the development of non-publicenterprises; 5. negotiating labor relationships to foster social harmony and stability; 6. communicating the requests of the non-publicsector enterprises and individuals to a higher authority to safeguard their legitimate rights and interests.

Q: How can federations of industry and commerce play an effective role in guiding the ideological and political construction of the individuals of the non-publiceconomy?

A: It is the duty of the federations of industry and commerce to guide the individuals to become qualified constructors of socialism with Chinese characteristics by being patriotic, dutiful, credible, respecting the law, and contributing to the society. The federations should encourage the individuals to practice the core socialist values, strengthen their corporate cultures, participate in social charity causes, and contribute to scientific development and social harmony. The federations should recognize entrepreneurs with outstanding contributions to the socialist construction; assist the Party and the government in guiding the public opinions to foster a favorable social atmosphere for the healthy development of the non-publiceconomy and individuals; and encourage the establishment of CPC branches in the non-publicenterprises.

Q: What can federations of industry and commerce do to encourage the participation of the individuals of the non-publiceconomic sector in the country"s political arena and social scene?

A: As a key organization of the CPC-led united front and people"s political consultation, the federations have the duties of political consultation, democratic supervision and participation in political life and debate of the political affairs.

The federations should establish close ties with the individuals of the sector and make proposals and advice based on their wishes and demands to the Party and the government; the federations should involve themselves in the drafting and implementation of the country"s laws, regulations, guidelines and policies to improve the market, policy, legal and social environments for the non-publiceconomy; the federations should guide the personages in the non-publicsector to raise their awareness of the big picture of the country and of their responsibilities, help them to improve their ability in participating in political life and debating political and social affairs, as well as communicating the wishes of the people and social situations.

Q: How can federations of industry and commerce take full advantage of their role as the aide to the government in the management and service of non-publiceconomy?

A: Regarding matters of key economic decision-making, the governments at various levels should systematically commission the federations of industry and commerce to consult the personages in the non-publiceconomic sector. They should also involve the federations of industry and commerce in the leadership and coordination system for promoting the non-publiceconomy and the development of small- and medium-sized enterprises, as well as in the construction of the service system for the SMEs.

On the other hand, federations of industry and commerce should actively engage in people-to-people diplomacy, and tighten exchanges and cooperation with overseas circles of industry and commerce, to smooth the way for the non-publicenterprises to conduct international exchanges and cooperation. The federations of industry and commerce should explore for the service vehicles and mechanisms compatible with the socialist market economy, provide services regarding information, laws, financing, technology and human resources, and help facilitate the structural adjustment and self-innovation of the enterprises to enhance their competiveness, the ability to fight hazards and maintain sustained development.

Q: How can we fully tap the federations" potential in promoting the reform and development of the country"s trade unions and chambers of commerce?

A: The federations of industry and commerce should implement their duties as the main administrative organ of social groups, by guiding and promoting the improvement of the legal entity management structure of the chambers of commerce, regulating their internal management, so that they can conduct activities in line with relevant laws and charters and carry out their functions.

Q: What can federations of industry and commerce do to build harmonious labor relationships?

A: The "Proposals" suggests that federations of industry and commerce participate in the tripartite meetings along with human resources and social security authorities, trade unions and the representatives of the enterprises, to push for the legislation of labor relationships and the establishment of the coordination mechanism of labor relations, and look for coordination and settlement regarding the major issues in labor relationships and disputes.

The federations of industry and commerce should guide the enterprises to conduct negotiations with the trade unions on an equal footing regarding salaries, living welfare and other issues concerned with the employees" interests, and sign collective contracts.

The federations of industry and commerce have a duty to coordinate and settle in a proper manner the relations between the interests of the investors and the interests and rights of the employees. The federations should encourage the enterprises to create new jobs, abide by the country"s laws and policies, respect and safeguard the employees" rights and interests, and establish trade unions in the enterprises.

Q: Any new measures in facilitating the endeavors of the federations of industry and commerce to improve their own organizational construction?

A: The "Proposals" points out that federations of industry and commerce should build up their memberships by increasing the ratios of corporate and group members, and attracting economic groups including professional associations and chambers of commerce. The federations should also build up an elitist team composed of outstanding personages of the non-publiceconomy. The leaderships at various levels should be strengthened. In the principle of democratic discussions and centralized decisions, those personages with outstanding performances from the non-publicsector should be considered for the federations" leading positions.

It is of great importance to build and supervise the federations at the county level and the grassroots chambers of commerce, which can play a pivotal role in membership buildup and management, corporate liaison and services, promotion of county-level economic growth, and the construction of the new socialist rural areas.

The administration offices of the federations should improve their working methods, administrative execution and efficiency, and establish training, examination and incentive mechanisms for the cadres.

Q: What can be improved in terms of the leadership and supervision by the Party and the government regarding the federations" work?

A: The Party Committees at various levels should tighten their leadership of the federations" work and move up the issue on their agenda. They should study and settle the major issues of the work of the federations in a timely manner; attach great importance to the party buildup efforts in the non-publiceconomic groups by the federations" Party Committees; increase the publicity of the federations" work and the non-publiceconomy and enhance the training of the federations" cadres.

The governments at various levels should increase their guidance and support of the federations" work and create favorable conditions for it. The governments should regularly liaise with the federations and make budget for the federations" daily administrative expenditure, as well as the costs from their inspections, research and training.

The United Front Work Department should research the work of the united front in the economic arena and the work of the federations in a regular manner, assist the Party leadership in drafting and implementing various policies concerned with the federations" work, and strengthen the leaderships of the federations.

The federations" own Party Committees should play a leading role in the federations, to guarantee the implementation of the theories and guidelines of the Party and the decisions of the Party leadership, so that the federations can operate in a correct direction. The Committees should supervise the federations" human resources, support the work of the chairmen and tap the full potential of the cadres who are not Party members.

Date:2010-11-16 17:06:34