China’s Communist Government Has a Strong Hold on Chinese Corporations

JD.com is the largest e-commerce company in China. In Communist China, it’s not enough for large companies like JD.com to be profitable — they must serve the goals of the Communist Party and benefit the country as a whole. For The New Yorker, Jiayang Fan details the clever ways that the company uses rural villages’ existing social networks to recruit new customers and employees, which has allowed it to improve Chinese life and possibly help slow the exodus to cities by giving villagers an incentive to remain in the countryside.

For the country’s leading tycoons, keeping in the government’s good graces is a well-established habit. During our conversation, Liu repeatedly spoke of company strategy in terms of deeper ambitions for the country as a whole, framing economic advancement as a civic virtue. A thirty-year economic miracle was not enough in itself, he said; one also had to “lead society in the right direction and bring in positive energy.” “Positive energy” is a phrase much used by President Xi Jinping, and my conversation with Liu took place less than two weeks after the Chinese Communist Party’s Nineteenth National Congress, which had signaled a tightening of Xi’s grip on the country. It has become evident that, compared with his predecessors Hu Jintao and Jiang Zemin, Xi demands more direct and explicit fealty from…