Understanding the Nature of the Chinese Communist Party from its Economic Legislation

Today, with an integrated global economy, the Chinese Communist Party deceives people around the world with government-fabricated lies and attempts to sustain its collapsing economy with a transfusion type of economy dependent on foreign investments.

The following are a few examples.

Failing to Keep its Promise

In the initial period of the CCP's reform during the 1980's, in order to relieve the distrust of Western society towards the regime, Deng Xiaoping, the so-called "Chief Designer" of the reform of the Party, once promised to the world that, "our reform and opening policy will not change for fifty years." To encourage foreign investments, they formulated many preferential policies for foreign investments. Let's look back and find out how many of these policies still hold today. The CCP's newly published "Corporate Income Tax Law" has unified the tax rate for domestic and foreign companies. The preferential policies granted to the foreign investments will be gradually abandoned. The new "Corporate Income Tax Law" will take place on January 1st, 2008. The only exceptions are businesses that have been granted a reduced tax rate before the law takes place. They will enjoy the reduced rate for a few more years until the expiration of the original term.

According to a report on news.xinhuanet.com published March 4th, 2007, Jiang Enzhu, spokesman of the Fifth Session of the Tenth National People's Congress, claimed, "As China establishes and improves its socialism market economy system, and as the transitional period comes to an end since China joined the WTO, the dual income tax rate for domestic and foreign companies will no longer be applicable in the new situation. Unified tax rates of domestic and foreign companies as soon as possible will help domestic businesses to compete with their foreign counterparts fairly. It helps to create a unified, regulated market with fair competition, and promotes a healthier and more balanced growth of the national economy."

The above report indicated that the CCP's reform and open policy had changed. Before the end of fifty years, the promise of the "Chief Designer" has become a mere scarp of paper.

The Party Uses Law as a Manipulating Tool, Creating and Executing Law at Will

On June 1st, 2007, the CCP's new "Law of the People's Republic of China on Enterprise Bankruptcy" took effect. Western society has made many comments on this law. The following are some of the problems involved in the making of this law.

1. The subject that the law applies is incomplete, and thus the law fails to regulate the social economic activities.

In Western society, "Bankruptcy Law" is an essential legal regulation in social economic activities. It should apply to all economic subjects. However, the CCP's "Enterprise Bankruptcy Law" applies to so-called "corporate businesses" only. It does not apply to so-called "non-corporate entities" including scientific, educational, cultural or medical institutions, government or individuals. In the words of Zhu Shaoping, the head of the team that drafted the law, "First, it does not apply to all enterprises. Second, it does not apply to any state-run enterprises. Third, there are certain limits in when and where it's applicable."

Can you imagine regulating the social economic activities in China with such a law? It is no more than a signboard for the CCP to attract foreign investments to sustain its transfusion type of economy, with the message, "See, we are also a market economy. We also have 'Enterprise Bankruptcy Law.' Please come invest in China, and don't restrict us with your anti-trust laws."

2. The government infringes the legal rights and interests of creditors, and promotes corruption.

In a bankruptcy case, the creditors are the main subjects to be paid. It is the creditors' business to decide whom to appoint as trustee to handle the case. It is a common practice in the western society for the creditors to appoint a trustee to administer the liquidation. However, in the "Enterprise Bankruptcy Law," the CCP stipulated that, "The trustee is to be appointed by the court." This stipulation seriously infringes the creditors' legal rights and interests. It directly interferes with the fairness of a bankruptcy case.

Currently in China, the agency commission rate is usually 15-30%, sometimes even higher. This court procedure implies high potential income for court judges who have the authority to appoint the trustees. For example, in Beijing alone, there are over 400 CPA firms and over 1,000 legal firms. However, how many bankruptcy cases can there be in Beijing? Is it the judge's discretion to decide to whom to give the business?

The website news.xmnext.com presented a report entitled "The Central Committee for Discipline Inspection, Supreme Procuratorate and Shenzhen Court Combat Corruption, Five Judges Arrested." The corruption of all five judges was related to bankruptcy cases. For example, over 27 million yuan (US $950,000) were seized from Judge Pei Hongquan's court alone. (Details can be found at news.xmnext.com.)

Falun Gong, following the principles of Truthfulness, Compassion and Forbearance, teaches people to be good, and improves social moral levels. This has been widely recognised by the majority of the kind-hearted people around the world. However, the CCP deceives people with lies and opposes truth. It destroys people by cutting off their path to return.

After several decades, the international communist movement has been spurned by history. The Chinese Communist Party led by Jiang Zemin initiated the persecution of Falun Gong. The Party is therefore doomed for destruction. Its demise will mark the end of the communist movement.

I appeal to all kind-hearted people around the world. Let's all conscientiously spurn the CCP--an evil demon in the world--and start a glorious future for ourselves.

(I ask your pardon that I am not able to sign with my real name here for my own safety.)