More than 8,000 government or Communist Party officials at
county level or higher had been removed from their private-sector
jobs by November, according to the Central Committee of the
Communist Party of China (CPC).
The Organization Department of the CPC Central Committee and the
CPC Central Commission for Discipline Inspection jointly issued a
circular on January 19, 2004, launching a nationwide campaign to
separate CPC and government officials from enterprises.
The campaign affected more than 8,400 officials at county
government or higher level, according to sources from the two party
organs. All but 5 percent have complied.
Thirteen of China's 31 provinces, municipalities and autonomous
regions report full compliance with the directive.
For years some government officials have held part-time jobs,
mostly in state-owned enterprises, raising public concerns about
corruption and illegal intervention in business. They are known as
"hongding shangren," or entrepreneurs with ruby-studded
caps, an old term deriving from the Qing Dynasty (1644–1911), when
wealthy officials often wore caps decorated with rubies.
China's economic reform created concerns that these officials
could impair fair market competition and weaken the long-term
endeavor to separate the functions of the government from
companies.
Governments at all levels have revised or repealed local
policies that were not in line with the laws, regulations and
policies of the central government.
Case reports have been filed on all CPC and government officials
at or above county level who are engaged in business, and special
task forces have conducted spot-checks to ensure smooth and
efficient operation of the campaign.
Some local governments have also taken steps to improve
supervision of state-owned enterprises and their managers.
(Xinhua News Agency December 29, 2004)