Executives of China's state-owned enterprises will have salaries linked to 'party building' performance

Shehab Khan
(File photo): GETTY IMAGES

Executive salaries at China’s largest state-owned enterprises will now be linked to “party building” performance, according to Chinese state media.

President Xi Jinping is attempting to re-establish the Communist Party in his country's business and institutions.

As many of the state-owned enterprises have become more international, executives have been choosing business work over their party responsibilities.

For the first time, there will be a “system of responsibility” which looks to ensure executives are promoting the state’s ideology, according to the People’s Daily newspaper.

The decision was made at a meeting by the State-owned Assets Supervision and Administration Commission (Sasac), which appoints top executives in state-owned enterprises and approves mergers and sales of their assets.

Pay, appointment or dismissal and other rewards or punishments will be determined by assessments of how well individuals carrying out "party building" work.

"We must resolutely assess party building. Without tests there is no way to hold (people) accountable," Hao Peng, party secretary of Sasac said at the meeting.

"The party committee secretary and chairman are shouldered as one; two jobs, two duties with only one person in charge; we must resolutely avoid paying attention to one while neglecting the other," Hao Peng added.

The ruling party appoints party executives to top positions in state-owned enterprises with party loyalty being an important part of being considered.