Huawei, the Chinese telecoms equipment company, has aroused fresh concerns in the west about the role played by the Communist party in Chinese companies — whether these are either state-owned or private.
Western critics claim that companies in China are obliged to spy on foreign governments and companies, at the request of the party. Yet there is no provision in Chinese law requiring citizens to assist the party in spying on foreigners.
China’s national intelligence law, in particular article 7 on the obligation of Chinese citizens to support national intelligence work, is often misunderstood. First, it does not authorise pre-emptive spying; national intelligence work must be defensive in nature. Second, the law requires that intelligence agencies respect the rights and interests of individuals and entities. That includes Huawei. Moreover, it is not clear that there is any incentive for China to risk the future of Huawei, a Chinese brand recognised around the world, by asking it to engage in spying.
My experience as a party member for about 10 years might help to throw some light on the subject. I studied in the US and then worked for an intergovernmental organisation in Geneva. During those years it never occurred to me that the party might ask me to do something on its behalf. I received precisely one request that mentioned my party membership, and that came from a Harvard law professor who invited me to talk to his class about China.
I also remember joining a heated debate with members of a Bible study group in Boston. We discussed the question of who or what should govern in China — Christianity, Confucianism, or Communism. I felt an obligation to help my American friends understand China and the Chinese Communist party.
There has been a widespread misperception in the west about what is sometimes called “China Inc”. Yes, China is a market economy led by the party, but that does not mean that the political leadership intervenes to allocate resources on a daily basis. Instead, the market plays a decisive role.
Chinese company law requires that there be a party committee in a company with three or more party members. The question is what such committees actually do.
Consider an analogy. The Communist party in China is like God for Christians, and the party committee in a company is like a church. The church calls upon its congregation to be model citizens, while the party committee asks its members to be model staff, offering its members a sense of community while not dictating company strategy. Executives, like Christian believers, are on their own.
In President Xi Jinping’s “new era”, great importance has been attached to building and strengthening party committees at all levels in China. As well as commercial enterprises, local communities have also been called upon to rejuvenate their party committees. I have taken part in activities organised by the party committee in my community. These have included a campaign for promoting waste recycling, and tidying up bicycles left scattered by users of Ofo, the bike-sharing company.
In the US, however, the Trump administration has shown signs of adopting a closed-door policy towards Chinese businesses and people, under the cover of national security.
President Donald Trump often conjures up the image of the invisible hand of the Communist party operating through Huawei’s global 5G networks. And this is having an effect. Statistics show that Chinese investment in the US dropped by more than 80 per cent in 2018. And concerns are growing among overseas Chinese, increasing numbers of whom are choosing to leave the US and return to China each year.