Written by: Ping
Translated by: billwilliam
China Logistics Group is officially formed on December 6, per approval by the State Council. The shareholding structure of China Logistics Group is as follows: the State-owned Assets Supervision and Administration Commission of the State Council and China Chengtong Holding Group have a 38.9% stake in China Logistics Group; three strategic investors have 10%, 7.3%, and 4.9% stakes, respectively. China Logistics Group is another central enterprise with diversified equity under the direct supervision of the State-owned Assets Supervision and Administration Commission of the State Council. The establishment of a state-owned logistics and supply company completely upends the era when private logistics and supply companies dominated the market. This is a material change in the logistics sector. It is unknown how many private logistics companies will go bankrupt because of this when fast and flexible logistics services are gone.
Because Wu Xiaoping, a little-known financial researcher at China International Capital Corporation (CICC), suggested that “China’s private economy has finished its mission of assisting the development of the public economy and should be phased out,” his opinion is printed on the headline of toutiao.com. This person’s view is exactly what the Chinese Communist Party wants to convey. The establishment of the China Logistics Group now also proves that Communist China is squeezing out the private economy. The era again arrives for public-private mergers and promoting state-owned enterprises while suppressing the private sector.
In early 1956, socialist transformation reached its climax throughout China. Capitalist industry and commerce all formed a public-private partnership, thus achieving the CCP’s first goal of plundering private entrepreneurs’ assets “legally.” However, in the book “The Life and Death of Chinese Merchants in 1953,” we learned that the CCP caused the death of thousands of private entrepreneurs during the public-private partnerships. Founder of Minsheng Company Lu Zuofu (nicknamed respectfully as the “shipping king”) committed suicide in his home in Chongqing on February 8, 1952, two years after he returned to mainland China from Hongkong. The death of the “shipping king” marks the capitalists’ anxiety in the new era and also harbingers an upcoming storm.
At almost the same time, some capitalists in Shanghai bid farewell to their companies in the way that new Shanghai City Mayor Chen Yi jokingly called “airborne troops.” According to incomplete statistics in Shanghai from January 25 to April 1 of that year, as many as 876 capitalists committed suicide because of the communist movement. The average number of suicides per day was almost 10 or more. Many capitalists even chose to commit suicide along with their wives and children, which is enough to illustrate the movement’s intensity and the tremendous impact on the capitalists’ minds. The CCP never displayed any mercy in its brutal oppression against private entrepreneurs.
Since his whistleblowing in 2017, Mr. Miles Guo pointed out that private entrepreneurs in Communist China have no future, but at that time, how many private entrepreneurs still harbored illusional hopes on the CCP? They naively believe that the CCP cannot do without them because of their extensive ties and interests intertwined with the communist party. Today nearing the end of 2021, many famous entrepreneurs have died mysteriously, such as Wang Jian of HNA Group, Wu Xiaohui of Anbang Group, and Ye Jianming of Huaxin Energy. Then what is the current situation of the entrepreneurs who are alive, such as Jack Ma, Ma Huateng, Ma Mingzhe, Wang Jianlin, and Xu Jiayin? They must be as nervous and miserable as sitting on pins and needles. Who can guarantee that someone will not die next? And this is just the beginning.
In the era of Cultural Revolution 2.0 and state-owned economy squeezing out private economy, the disaster of private entrepreneurs in Communist China has just begun.