CHINA says it is going to stop interfering in the management of state enterprises. Beijing has expressed such an intention numerous times since 1979, but the rhetoric has always run ahead of the reform, with the result that the line between politics and business is blurred, if it exists at all. One recent manifestation of this was uncertainty about factors behind the arrest of Zhou Beifang as chairman of Shougang Concord International, and the retirement of his father, Zhou Guanwu.
The fusion of economic, political and personal elements is common in Chinese enterprises. In most societies, those holding power are reluctant to sacrifice it, even if such a sacrifice might be in the national interest. In this respect, China is not much different from other countries. The power of the Communist Party, sometimes exercised through party secretaries stationed in state enterprises, means political and administrative interference continues strong. Beijing deserves a degree of understanding and support as it attempts to push through economic and political reforms. The latest promise to free state enterprises from political interference, which requires strong political will, is set to test Beijing's resolve.
