China's Private Party
"The Party: The Secret World of China's Communist Rulers" by Richard McGregor.
On the desks of the heads of China's 50-odd biggest state companies, amid the clutter of computers, family photos and other fixtures of the modern CEO's office life, sits a red phone.
The red machine is like no ordinary phone. Each one has just a four-digit number. It connects only to similar phones with four-digit numbers within the same encrypted system. They are much coveted nonetheless. For the chairmen and women of the top state companies, who have every modern communications device at their fingertips, the red machine is a sign they have arrived, not just at the top of the company, but in the senior ranks of the Party and the government. The phones are the ultimate status symbol, as they are only given out—under the orders of the Party and government—to people in jobs with the rank of vice minister and above.
The phones are encrypted not just to secure party and government communications from foreign intelligence agencies. They also provide protection against snooping by anyone in China outside the party's governing system. Possession of the red machine means you have qualified for membership of the tight-knit club that runs the country, a small group of about 300 people, mainly men, with responsibility for about one-fifth of humanity.
The Party's defense of power is also, by extension, a defense of the existing system. In the words of Dai Bingguo, China's most senior foreign policy official, China's "number one core interest is to maintain its fundamental system and state security." State sovereignty, territorial integrity and economic development, the priorities of any state, all are subordinate to the need to keep the Party in power.
Since installing itself as the sole legitimate governing authority of a unified China in 1949, the Party and its leaders have placed its members in key positions in every arm, and at each level, of the state. All the Chinese media come under the control of the propaganda department... The police forces at every level of government, from large cities to small villages, have within them a "domestic security department," the role of which is to protect the Party's rule and weed out dissenting political voices before they can gain a broad audience.
The Party in China has eradicated or emasculated political rivals; eliminated the autonomy of the courts and press; restricted religion and civil society; denigrated rival versions of nationhood; centralized political power; established extensive networks of security police; and dispatched dissidents to labor camps. ... The Party itself suffered an existential crisis after the collapse of the Soviet Union and its satellite states in 1992, an event that resonates to this day in the corridors of power in Beijing. After each catastrophe, the Party has picked itself off the ground, reconstituted its armor and reinforced its flanks. Somehow, it has outlasted, outsmarted, outperformed or simply outlawed its critics.
The implosion of the Western financial system, along with an evaporation of confidence in the U.S., Europe and Japan, overnight pushed China's global standing several notches higher. In the space of a few months in early 2009, the Chinese state committed $50 billion in extra funding for the International Monetary Fund and $38 billion with Hong Kong for an Asian monetary fund; extended a $25 billion loan to cash-strapped Russian oil companies; set aside $30 billion for Australian resource companies; offered tens of billions more to various countries or companies in South America, central and Southeast Asia, to lock up commodities and lay down its marker for future purchases. In September, China readied lines of credit of up to $60 to $70 billion for resource and infrastructure deals in Nigeria, Ghana and Kenya.
In the end the key take away point: Nothing succeeds like success. PRC is successful at least so far in the goals that it has set out for itself and that is the best advertisement for its governance model or the lack of it.