What is a Public-Private Partnership?

Public-private partnership is the advanced form of state capitalism adopted by China to implement socialist transformation of national capitalist industry and commerce. Generally speaking, it goes through two stages of public-private partnerships for individual companies and public-private partnerships for the entire industry.

[gng s hé yíng]

(Adopted at the 223rd Administrative Conference of the Government Council on September 2, 1954)

Article 1 These Regulations are formulated to encourage and guide the transformation of capitalist industries that are conducive to national economy and people's livelihood to state capitalist industries in the form of public-private partnerships, and to gradually complete socialist transformation.
Article 2: Industrial enterprises that are invested by the state or public-private joint ventures and are sent by state officials to carry out joint ventures with capitalists are public-private joint ventures (hereinafter referred to as joint ventures). Public-private joint ventures shall be implemented for capitalist industrial enterprises. Likely and voluntary of the capitalists. The public-private partnership of an enterprise shall be approved by the people's government.
Article 3 In joint ventures, the socialist element occupies a leading position, and the legitimate rights and interests of private shares are protected.
Article 4 The joint venture shall abide by the national plan.

Article 5 For an enterprise's public-private partnership, the public and private parties shall value the real property of the enterprise, and clear up the debts and debts of the enterprise to determine the shares of the public and private parties.
Article 6 For the valuation of enterprise property, both the public and private parties shall consult on the basis of the principle of fairness and reasonableness, taking into account the actual useful life of the property and the magnitude of its effect on the production of the enterprise. The valuation of enterprise property shall be attended by representatives of employees; when necessary, it shall be instructed by the administrative department for industry and commerce of the people's government.
Article 7 A joint venture may absorb private investment. Article 8 The shareholders of a joint venture shall bear limited liability for the debts of the joint venture.

Article 9 The joint venture is under the leadership of the public, and the representatives of the competent business organs of the people's government are responsible for the operation and management of the joint venture.

Article 10 The public-private relationship of the joint venture shall be handled through negotiations between representatives of the public and private parties. When major issues cannot be reached, it shall be reported to the competent authority of the people's government for approval or submitted to the board of directors of the joint venture for consultation and reported to the competent authority of the people's government Approved.

Article 11 The administrative positions of representatives of the public and private parties in a joint venture shall be determined by the competent business organ of the people's government in consultation with the representatives of the private party and appointed. They should have the right to perform duties and perform their duties in corporate administrative positions.

Article 12 The joint venture shall generally consider the original situation of the actual personnel in the enterprise, and shall take appropriate care of the original actual personnel who have performed in the enterprise but have lost the ability to work.

Article 13 A joint venture shall take an appropriate form and implement a system in which worker representatives participate in management.

Article 14 The joint venture shall, with regard to the wage system and welfare facilities, make reference to the original wages and benefits of the enterprise, the production and operation of the joint venture, and the relevant provisions of the state-owned enterprise, gradually improve it, and gradually align with the equivalent state-owned enterprise.

Article 15 The joint venture shall comply with the provisions of the relevant competent authorities of the people's government in terms of production, operation, finance, labor, capital construction, safety and health.

Article 16 Under the necessary and possible conditions, joint ventures in the same industry or in production are subject to agreement between relevant public and private parties and the approval of the competent business organ of the people's government, and they can be jointly managed or merged.

Article 17 The joint venture shall distribute the balance of the total annual surplus after the payment of income tax on the three aspects of corporate provident fund, corporate awards, and shareholder dividends according to the following principles: (1) shareholder dividends, plus directors The remunerations of managers, managers, factory directors, etc. can account for about 25% of the total surplus of the year; (2) Enterprise awards, which can be appropriately drawn in accordance with the relevant regulations of the state-owned enterprises and the original welfare of the enterprises (3) The balance after the payment of dividends to shareholders and the withdrawal of corporate awards shall be used as the corporate provident fund.

Article 18 Dividends received from public shares shall be paid in accordance with regulations; dividends received from private shares shall be at the disposal of private shareholders. The enterprise provident fund shall be used for the development of production as the main purpose. The joint venture shall invest in the enterprise in accordance with the state plan, or in other joint ventures, or in private enterprises in accordance with the provisions of Article 2 of these regulations. Enterprise incentives should be paid to employees

Article 19 The board of directors of a joint venture is the organ in which the public and private parties negotiate and discuss the following matters: (1)

Article 23 Joint ventures shall be placed under the leadership of the competent business organs of the people's governments of the central, provincial, municipalities, counties and municipalities.

Article 24 The administrative organs for industry and commerce of the people's government are responsible for managing many matters related to the administration of industry and commerce by joint ventures.

Article 25 The financial organ of the people's government and its affiliated Bank of Communications are responsible for supervising the finance of the joint venture.

Article 26 These regulations also apply to public-private partnerships in transportation and construction enterprises. Other enterprises that implement public-private partnerships may refer to the relevant provisions of these regulations.

Article 27. Due to the special circumstances of individual joint ventures, when different measures are required from Article 9 and Article 17 of these regulations, they shall be agreed upon by the public and private parties and reported to the people's governments at or above the provincial and municipal levels for approval.

Article 28

Case 1: Wang Laoji public-private partnership process

In 1828, the first Wanglaoji herbal tea shop was opened in Shisanhang in Guangzhou. The opening of this shop marked the birth of the Wanglaoji trademark;

In 1840, the company further developed and expanded. While operating the herbal tea shop, it produces and sells Wanglaoji herbal tea bags in a front store and back factory manner.

On behalf of the Chinese national brand in 1925, Wong Lo Kat herbal tea bags were exhibited in London

In the seventeenth year of the Republic of China (also in 1928), he obtained the license of Wang Laojie;

Until 1956, it was always called Wanglaoji Pharmaceutical Factory;

In 1956, a public-private partnership called "Wang Lo Kat United Pharmaceutical Factory"

In 1965, it was renamed Guangzhou No. 9 Chinese Medicine Factory

In 1982, it was renamed Guangzhou Yangcheng Pharmaceutical Factory, and the shareholding system was changed in 1992.

In 1992, pioneering production of boxed Wong Lo Kat and canned Wong Lo Kat herbal teas can be described as the earliest herbal tea plant beverages in China and are widely sought after in the South China market.

After 1995, Hong Dao Group sought cooperation from the then-Yangcheng Pharmaceutical and was authorized to produce and operate red canned and red bottled Wong Lo Kat within a certain period of time.

In 2004, it became today's Guangzhou Wanglaoji Pharmaceutical Co., Ltd. After the joint venture development in 2005.

In terms of products, Wanglaoji also kept pace with the times, and the products were continuously upgraded. From the bowled herbal tea in 1828 to the herbal tea bags of the Republic of China, in 1992, Guangzhou Pharmaceutical Group Yangcheng Pharmaceutical Factory successfully launched boxed and canned Wanglaoji. Boxed Wang Laoji's single product sales of nearly 2.5 billion yuan, has become the first brand of Tetra Pak beverages; before 1995, boxed Wang Laoji and canned Wang Laoji have been produced and operated by Guangzhou Pharmaceutical Group. In 1995, Guangdong Pharmaceutical Group authorized Hongkong Hongdao Group. Production of red canned Wong Lo Kat within a certain period, green box Wong Lo Kat and red can Wong Lo Kat have double wings, interpreting the legend of the brand.

Wanglaoji Family Tree