More than 8,000 government or Communist Party officials at county level or higher had been removed from their private-sector jobs by November, according to the Central Committee of the Communist Party of China (CPC).

The Organization Department of the CPC Central Committee and the CPC Central Commission for Discipline Inspection jointly issued a circular on January 19, 2004, launching a nationwide campaign to separate CPC and government officials from enterprises.

The campaign affected more than 8,400 officials at county government or higher level, according to sources from the two party organs. All but 5 percent have complied.

Thirteen of China's 31 provinces, municipalities and autonomous regions report full compliance with the directive.

For years some government officials have held part-time jobs, mostly in state-owned enterprises, raising public concerns about corruption and illegal intervention in business. They are known as "hongding shangren," or entrepreneurs with ruby-studded caps, an old term deriving from the Qing Dynasty (1644–1911), when wealthy officials often wore caps decorated with rubies.

China's economic reform created concerns that these officials could impair fair market competition and weaken the long-term endeavor to separate the functions of the government from companies.

Governments at all levels have revised or repealed local policies that were not in line with the laws, regulations and policies of the central government.

Case reports have been filed on all CPC and government officials at or above county level who are engaged in business, and special task forces have conducted spot-checks to ensure smooth and efficient operation of the campaign.

Some local governments have also taken steps to improve supervision of state-owned enterprises and their managers.

(Xinhua News Agency December 29, 2004)