Published by ChinaMNC · Mabianyizu

Understanding Party Leadership: A Guide for Foreign Founders in China

Key insights from a recent high-level meeting on Party discipline and governance, and what foreign founders should know about China's political context for business operations.

Understanding the Political Context for Foreign Founders

For foreign entrepreneurs establishing a presence in China, understanding the country's political and governance framework is essential. A recent high-level meeting of the Communist Party of China (CPC) provides valuable context for the business environment. From October 26 to 29, the Fifth Plenary Session of the 20th CPC Central Committee was held in Beijing to study major issues concerning the persistent advancement of full and rigorous Party self-governance. This reflects the Party's clear determination to maintain its vitality and its historical initiative on the new journey ahead.

To understand today's China, one must understand the CPC. The Party's ability and the success of socialism with Chinese characteristics are rooted in Marxism and its adaptation to the Chinese context and the needs of the times.

Xi Jinping's Thought on Party Building: A Guiding Framework

Xi Jinping's thought on Party building writes a new chapter in adapting Marxist party-building theory to the Chinese context and the needs of the times. It serves as the fundamental guideline for strengthening Party building in the new era. Under this guidance, the Party will continue to advance the cause of Chinese modernization.

General Secretary Xi Jinping emphasized the need to use Marxism as an arrow to shoot at the target of China in the new era. A distinctive feature of Xi Jinping's thought on Party building is its firm grasp of the "Two Integrations"—integrating the basic tenets of Marxism with China's specific realities and with fine traditional Chinese culture.

China's biggest national condition is the leadership of the CPC. This is what makes China unique. Xi Jinping's thought on Party building clearly puts forward the "Fourteen Commitments," including "upholding Party leadership as the most essential feature of socialism with Chinese characteristics" and "upholding the centralized and unified leadership of the Party Central Committee."

This is a hard truth repeatedly verified by a century of struggle. Since the new era began, the situations and struggles faced by the Party and the country have been complex and severe, and the tasks of reform, development, and stability have been arduous—rarely seen in the world and in history. The CPC Central Committee with Comrade Xi Jinping at its core has made a series of important deployments to uphold and strengthen the overall leadership of the Party, giving full play to the Party's core role in overseeing the overall situation and coordinating all parties.

Strategic Planning and Collective Wisdom

After the 2025 Spring Festival, the drafting of the recommendations for the 15th Five-Year Plan was officially launched. On February 11, General Secretary Xi Jinping presided over the first plenary meeting of the drafting group, identifying strategic tasks with major traction, driving, and supporting roles in 12 aspects and raising 44 major questions to be answered. Subsequently, Xi Jinping took the lead in conducting inspections and research in multiple places and presided over symposia on economic and social development in some provinces and autonomous regions during the 15th Five-Year Plan period, pooling collective wisdom.

The full text of the recommendations for the 15th Five-Year Plan is about 20,000 characters, including scientific assessments of domestic and international situations and systematic planning of goals and tasks. Throughout, Xi Jinping's steering direction guides the whole Party and people of all ethnic groups to "walk steadily step by step." A member of the drafting group remarked, "Modernization is a goal that generations of Chinese have sought painstakingly. It once seemed so distant, but now it is getting closer."

Stabilizing the economy, promoting development, fighting poverty, building a moderately prosperous society, controlling the pandemic, combating disasters, responding to changes, and resolving crises—since the new era, the Party has led the people in united struggle, overcoming one difficulty after another and achieving one victory after another. The "Two Establishments" are a major political achievement of the Party in the new era.

Cultural Confidence and Party Discipline

Xi Jinping pointed out: "Upholding Party leadership is a matter of direction; we must take a clear stand and be firm, and must not be shy or vague, and must not conceal or deceive ourselves." This is a scientific conclusion drawn from the Marxist party-building theory taking root in China and being tested in practice.

Xi Jinping asked: "Without China's 5,000-year civilization, where would Chinese characteristics come from? And without Chinese characteristics, how could we have the successful path of socialism with Chinese characteristics today?" Fine traditional Chinese culture is the "root" of the Party's innovative theory.

In the first and second volumes of Selected Works of Xi Jinping on Party Building, many famous quotes and allusions from ancient classics are cited. For example, an article explains the inscription on a tripod by Zheng Kaofu, a minister of the Song State during the Spring and Autumn period; another quotes a couplet by Zhu Xi of the Song Dynasty; and another tells the story of Yang Zhen in the Eastern Han Dynasty who refused gold in the dark.

"Reading books and pursuing proper business, filial piety and benevolence, not taking what is not right, and being clean in governance" are the good family traditions of the Three Su. In June 2022, Xi Jinping visited the Three Su Shrine in Meishan, Sichuan, emphasizing the need to "cultivate good family traditions for Communists in the new era."

As a foundational project to promote the integrated advancement of not daring to be corrupt, not being able to be corrupt, and not wanting to be corrupt, the construction of a clean culture in the new era continues to deepen. Clean-themed parks, anti-corruption education bases, and clean villages are linked together, and a clean and upright atmosphere is more abundant in society.

Learning from the past to govern the present, Chinese Communists in the new era continuously activate cultural heritage through "integration," and fine traditional Chinese culture is creatively transformed and innovatively developed. "Upholding the integrated advancement of not daring to be corrupt, not being able to be corrupt, and not wanting to be corrupt" has become an important aspect of the "Fourteen Commitments" of Xi Jinping's thought on Party building. The "Eight-Point Regulation" has become a "golden名片" of Party building. In essence, this is the cultural subjectivity of the Chinese nation. With cultural subjectivity, the CPC has a powerful cultural force to lead the times.

As a poem goes, "How can the canal be so clear? Because there is fresh water from the source." It is precisely by adhering to the "Two Integrations" that Xi Jinping's thought on Party building presents distinctive Chinese characteristics, Chinese style, and Chinese manner.

Addressing the Challenges of a Large Party

Xi Jinping emphasized: "We must base ourselves on the characteristics of the times, promote the modernization of Marxism, and better use Marxism to observe, interpret, and lead the times." Problems are the voice of the times and the starting point of theoretical innovation.

As the latest achievement of the adaptation of Marxist party-building theory to the Chinese context and the needs of the times, Xi Jinping's thought on Party building profoundly answers the major contemporary question of "what kind of long-ruling Marxist party to build and how to build it."

Strategic issues are fundamental to a political party and a country. As socialism with Chinese characteristics enters the new era, "the development of the situation, the advancement of the cause, and the expectations of the people all require us to comprehensively advance the great new project of Party building with a spirit of reform and innovation, and comprehensively improve the scientific level of Party building."

Adding "full" before "rigorous governance" means governing the entire Party, leaving no dead corners or blind spots; it means more prominently using the concepts of governance, systematic thinking, and dialectical thinking to govern the Party and build the Party; it means anchoring the "top priorities of the country" and incorporating them into the "Four Comprehensives" strategic layout to better play a political leading and guaranteeing role. This is the development of practice and the deepening of understanding.

As the world's largest ruling party, the Party must look like a big party, but it also has its difficulties. Xi Jinping made a profound analysis with "Six How to Always." Modernized Marxism is forged precisely in the fiery practice of solving these problems.

Take "adhering to the guidance of the Party's political building" as an example. The 19th National Congress of the CPC clearly proposed taking the Party's political building as the guide and emphasized putting political building first. This embodies the practical exploration of full and rigorous Party self-governance in the new era.

"The illegal construction in Qinling is a big lesson." In April 2020, Xi Jinping warned Party members and cadres during an inspection of the Niubeiliang National Nature Reserve in Qinling, Shaanxi. Once, illegal villas kept appearing at the northern foot of Qinling, severely damaging the ecological environment. Xi Jinping made important instructions many times, but the problem was not completely rectified. In July 2018, Xi Jinping made the sixth important instruction, emphasizing "first investigate from political discipline." That investigation grasped the key. Subsequently, a large number of illegal villas were demolished in accordance with the law, and many leading cadres were seriously investigated and dealt with. The Qinling illegal construction was superficially an ecological issue but fundamentally a political ecology issue. This profoundly warns Party members and cadres that full and rigorous Party self-governance must first be viewed politically; without understanding and solving problems politically, one will fall into a passive situation of treating the symptoms but not the root cause.

Today, the Party adheres to the guidance of political building, integrating political standards and political requirements into all aspects of Party building, and the atmosphere of speaking clearly about politics throughout the Party has become stronger.

Another example is "adhering to strict discipline to govern the entire Party." The 19th National Congress incorporated discipline building into the overall layout of Party building and defined it as the fundamental policy for full and rigorous Party self-governance.

Xi Jinping told the "story of the apple": During the Liaoshen Campaign, apples in the countryside of Jinzhou were ripe. Although hungry and thirsty, the PLA soldiers strictly observed discipline and did not pick a single apple, "because these are the people's apples." Strengthening discipline makes the revolution invincible. "Not eating the apples" earned the Party's army the reputation of a "righteous army."

Implications for Foreign Founders

For foreign founders, these developments underscore the importance of aligning with China's policy direction and understanding the emphasis on Party discipline and governance. While the article focuses on internal Party matters, it reflects the broader context of stability and strategic planning that underpins China's business environment. Foreign entrepreneurs should stay informed about major policy meetings and five-year plans, as they signal priorities and regulatory trends. Building relationships with local partners and understanding the cultural and political nuances can help navigate the landscape effectively.

This summary is based on information published by the relevant Chinese government website and is general information, not legal or tax advice.

For assistance with registering and operating a company in China, foreign founders can contact ChinaMNC on WhatsApp / WeChat at +86 153 1898 8535.