China's Leaders Order Communist Party to Take Stronger Role in Business

[Tsiyu]

SHANGHAI, China (AP) - In an apparent step backward from Western-style capitalist reforms, China has ordered a more active role for Communist Party officials in managing state-controlled companies.
Although Chinese corporations increasingly are modernizing management and seeking to meet international standards as they invest and issue shares overseas, party officials still call the shots in many strategically important industries.

A slew of financial scandals and corruption cases has prompted authorities to announce even tighter controls: A document issued last weekend spells out the role party members inside big corporations should play in company management, including serving as board members and choosing key executives, according to state media reports this week.

The changes come against a backdrop of torrid economic growth for the nation - 9.5 percent last year, the highest rate in eight years, despite government efforts to curb overexpansion in a variety of core industries through lending limits and other measures.

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