As an increasing number of private Chinese companies are establishing branches of the Communist Party of China, some were found to have problems, including poor motives and formalism in practice. 

Analysts stressed that establishing Party branches aims to help the companies better understand the central government’s policies and promote their businesses, but will not interfere in their business activities. 

A small number of private companies that have established Party branches were found to have a passive attitude toward Party-building activities. In some companies, the Party branches were hollow, according to a survey posted Monday on the WeChat account of Banyuetan, a biweekly magazine under the Xinhua News Agency which focuses on political affairs. 

More importantly, some companies established Party organizations out of impure motives to enjoy favorable treatment in getting government approval and subsidies for their projects, the report said.

These companies are expecting to establish a positive image and improve their relations with the government by establishing Party branches, said the report, citing an executive of an internet company in southern China.

“Party building can help companies improve their understanding of national policies and strategies,” Zhu Lijia, a professor of public management at the Chinese Academy of Governance in Beijing, told the Global Times on Monday.

“Establishing a Party branch in private companies could help them shoulder more social responsibility. The advantage brought by the Party organization could turn into a corporation development advantage, talent advantage and business advantage,” said Zhuang Deshui, deputy director of the Research Center for Government Integrity-Building at Peking University.

“Party-building is a drive for the companies’ development,” Zhuang said.

Chinese mobile content platform Qutoutiao, which established a Party organization on May 15, told the Global Times on Monday that carrying out Party-building can improve the company’s organizational efficiency, attract more talent and inspire employees.