Recently, there have been frequent reports of suicides among private entrepreneurs in mainland China, reminiscent of the mass suicides of private capitalists under political pressure in the 1950s. Overseas democracy organizations and various elite Chinese professionals believe that this “suicide wave” is inevitable.
In the past four months, there have been a series of suicides by private entrepreneurs in China: on July 17th and 27th, the founder of the private home furnishing company “Elegant Home” Zeng Yuzhou, and the chairman of the leading home furnishing company “Juran Smart Home” Wang Linpeng, both fell to their deaths. Additionally, the owner of the renowned textile brand “Gold Dot” in Zhejiang, Bi Guangjun, and the president of West Elevator Technology Co., Ltd., Liu Wenchao, died after falling in April and June respectively.
Last Saturday, the Chinese Democratic Party’s United Headquarters journal, “Opposition Party,” held a special seminar in Irvine, Southern California, inviting Chinese experts from various fields and several exiled private entrepreneurs to analyze and discuss “the plight and way out for China’s private entrepreneurs” from the perspectives of systems, political parties, society, and law.
Former Professor of Peking University’s School of Economics, Xia Yeliang, pointed out that the recent spate of suicides by Chinese entrepreneurs has all occurred after their detention by the CCP inspection authorities, with jumping off buildings being the primary method; and the cases made public are just the tip of the iceberg.
Xia Yeliang stated that over the past thirty years, Chinese private entrepreneurs have survived amidst various constraints, with some performing exceptionally well. In the past, the CCP nurtured and fattened up private enterprises, sometimes forcing them to invest at a loss, but now it has come to the point of killing the goose that lays the golden eggs.
He analyzed that mainland entrepreneurs are dealing with a combination of psychological and social pressures such as debts, interest, and interpersonal relationships, almost reaching the brink of bankruptcy during the pandemic; being investigated for “violations” at this time is equivalent to social death, as “once the authorities label you, your business partners, drinking and gambling friends will distance themselves from you, and even your family members will try to avoid you.”
Xia Yeliang believes that the wave of suicides among private entrepreneurs is “the fate of the system,” a “difficult dilemma to escape.” Comparing with the era of the National Government, where someone could have celebrities vouch for them when something happened, Chinese entrepreneurs now find it difficult to receive psychological treatment and assistance when faced with mental crises, he said: “During investigations by disciplinary institutions, can psychological organizations be allowed to provide assistance?”
Independent scholar Wu Zuolai believes that the CCP’s founding theory in the “Communist Manifesto” predetermined the fate of Chinese private entrepreneurs. In the “Manifesto,” it states that workers of the world should unite to overthrow the existing capitalist system, viewing the bourgeoisie as enemies, and so on. Therefore, he said, “As long as this political party does not change, private entrepreneurs will always face a fate akin to that of pigs under the governance of the Communist Party: fattened up and then slaughtered.”
Looking back at the fate of private economy under the Communist Party’s rule, Wu Zuolai said that private entrepreneurs as a whole were wiped out in the 1950s; in the late 1970s, with the CCP regime in difficulty, there was a slight loosening towards the private economy and capitalism. Now that they have become successful, the aim is to destroy capitalism and return to the era of Mao.
“The party constitution of the Communist Party means that there is no possibility for the survival of the private economy,” he said, stating that the only way for private entrepreneurs to save themselves is to “leave Egypt.”
Discussing the suicides of private entrepreneurs who were detained by the CCP’s inspection authorities, legal Ph.D. Chen Xiaoping said that the Chinese Constitution never grants the surveillance authorities the power to deprive Chinese people of their freedom, and the detention system itself is unconstitutional.
After 1989, Chinese entrepreneurs have been targeted time and again, with Chen Xiaoping citing examples: Sun Dawu and his entire family were sentenced, with assets worth 5.1 billion RMB assessed for sale at 680 million RMB; Ren Zhiqiang was sentenced to 18 years. The founder of Lenovo Group, Liu Chuanzhi, said in 2013 that from now on, gatherings of entrepreneurs would “only discuss business, not politics”; at the time, female entrepreneur Wang Ying retorted, saying she “did not believe that Chinese entrepreneurs could survive by kneeling.”
Reflecting on the “anti-dismantling” movement of the 1950s by the CCP, Chen Xiaoping said that at that time, private business capitalists could not bear the isolation, scrutiny, and torture, leading to many jumping off buildings or taking poison. He didn’t expect that such a wave of suicides would reappear in China 70 years later.
“As long as the Communist Party system exists, there will still be people jumping off buildings,” he said. “We admire the contributions made by these entrepreneurs, but we also find it very difficult to understand why they choose to remain in such circumstances.”
Prominent online influencer and commentator Cai Shenkun also believes that Chinese private entrepreneurs and officials of the CCP government face a lack of legal protection, “The CCP can arrest anyone they want and detain whoever they wish.” He said that everyone is on edge, even trusted aides of the current party leader are not safe.
Cai Shenkun recounted an incident involving a friend, who was arrested after former Shenzhen Mayor Chen Rugui fell from grace, being kept awake for days and nights. Despite telling the investigators that he and Chen Rugui had not been involved in any business dealings, they demanded 50 million RMB for his release. The friend couldn’t produce the money from his publicly listed company. The investigators told him, “Have your family find a way.” Eventually, his family sold their house and it took half a year to secure his release. When the businessman was released, his first action was to sell off his company.
Cai Shenkun believes that after “settling” the hundred-billion-level bosses, the CCP will extend its reach to the several-billion and several-tens-of-billion-level business owners.
Leader of the 1989 pro-democracy movement and history Ph.D. from Harvard University, Wang Dan, believes that many Chinese entrepreneurs think that they would amass wealth as long as they are smart. However, the basic logic of capital operation is that without freedom, there is no property: “Without a secure political system, there is no financial freedom, let alone financial security; and even personal safety is at risk.”
Wang Dan looks forward to Chinese private entrepreneurs playing an active role in future social change.
He said, firstly, they should be the avant-garde figures of social change in China; any political movement requires financial support, and entrepreneurs can provide secret funding for this cause. Secondly, he hopes that Chinese entrepreneurs will be like a signal light for the collapse of the system. When there is widespread panic among the entire entrepreneur class, capital flight, or a sharp downturn in the economy, it will deliver a heavy blow to the legitimacy of the CCP regime within China and internationally.
Wang Dan also anticipates that the entrepreneur class in China will become key defectors during critical moments: if heavyweight entrepreneurs publicly join the new government or openly separate from the current regime, it will have a tremendous demonstration effect. Ultimately, when China undergoes a successful political transition, the capital, management experience, and innovative spirit of the entrepreneur class will be indispensable in rebuilding the Chinese economy.
Veteran pro-democracy activist and editor-in-chief of “Opposition Party” magazine Zhu Yufu pointed out that during the reform and opening-up period, the CCP said it would let some people get rich first, but it does not acknowledge the legitimacy of wealth, and private property is not protected; with its Party manifesto, the Communist Party advocates the burial of capitalism, so when needed, they will go after capitalists.
He said that in the past, entrepreneurs held illusions about the CCP, avoiding politics and focusing on business, thinking that by growing and strengthening their enterprises, the middle class would mature and change China; however, they now realize that the CCP treats entrepreneurs as prey, “No matter how big or small you are, even someone like Jack Ma can’t escape being plundered.”
Zhu Yufu hopes that the Chinese Democratic Party can become the “engine” driving social change in China, with support coming from entrepreneurs and other individuals.
“The CCP also knows that it is facing challenges now, and any sudden problems could lead to its downfall. At that time, the collective force that everyone forms will deal a fatal blow to it,” he said.
Guests at the seminar also included Zheng Cunzhu, Chairman of the Chinese Democratic Party United Headquarters, Dr. Zhou Xiao from the University of Hawai’i with a Ph.D. in Political Science, and Dr. Liu Lin from the University of Social Sciences, along with several private entrepreneurs who fled China.
(Member of the Chinese Democratic Party United Headquarters, Liu Leyuan, contributed to this article.)