SHENYANG: A second outlet of the world's largest retailer, Wal-Mart, has seen the establishment of a branch of the Communist Party of China in Shenyang, the capital of Northeast China's Liaoning Province.

Following the establishment of a Party branch in the Shenyang Wal-Mart Department Store on August 12, another branch was set up in the Wal-Mart store on the city's Taiyuan Street on August 18, Wang Jing, head of the Publicity Department of the Heping District Party Committee, said on Friday.

A local Party official announced on Thursday that Party and Communist Youth League of China branches had been established in the Shenyang Wal-Mart Department Store on August 12, along with a trade union, giving employees access to Party membership.

These were the first Party and youth league branches to be established in any of the 60 Wal-Mart stores nationwide, said Chen Lie, head of the Organization Department of the Dongda District Party Committee.

So far, trade unions have been established in 22 of Wal-Mart's outlets on the Chinese mainland.

The Party and youth league branches would not interfere with the business development strategy and internal management of the Wal-Mart outlet, Chen said, without explaining the delay in the announcement of the news.

The branches were grass-roots Party and youth league organizations.

"By organizing Party and youth league members together, the branches will encourage members to play an exemplary role in doing a good job. That will be helpful to business development," Chen said.

Wal-Mart headquarters did not oppose the establishment of the Party and youth league branches, said a manager at the Shenyang outlet, who only gave his surname as Liu and refused to make any further comment.

Wal-Mart chiefs could not be reached for comment.

The establishment of Party branches has aroused the attention of the international media. Reuters carried a report which said: "The world's largest retailer, Wal-Mart, is now host to the world's largest communist party."

Wal-Mart had previously refused to allow the establishment of Party and youth league organizations in its outlets.

The Party branches indicated that Wal-Mart intended to assimilate with Chinese society, said Zhu Hui, vice-president of the Party School of Shenyang City Party Committee.

The chain store, which entered China in 1996, has 23,000 employees in the country. It plans to open more stores in the country in the future.

Some foreign investors worry that Party branches could disrupt operations if they are established in Sino-foreign joint ventures.

"They do not need to worry about that," said Zhu. "The Party's aim is to boost economic development, which accords with the purpose of business development of Wal-Mart and other enterprises."

According to the Party constitution, all enterprises, including private businesses, are encouraged to establish Party organizations.

(China Daily 08/26/2006 page2)