798 Art Zone - Operation

Operation

Joint Factory 718 began production in 1957, amid a grandiose opening ceremony and display of Communist brotherhood between China and East Germany, attended by high officials of both countries. The first director was Li Rui (李瑞), who had been involved in the early negotiations in Berlin.

The factory quickly established a reputation for itself as one of the best in China. Through its several danwei or "work units", it offered considerable social benefits to its 10,000-20,000 workers, especially considering the relative poverty of the country during such periods as the Great Leap Forward. The factory boasted, among others:

• the best housing available to workers in Beijing, providing fully furnished rooms to whole families for less than 1/30 of the workers' income;
• diverse extracurricular activities such as social and sporting events, dancing, swimming, and training classes;
• its own athletics, soccer, basketball and volleyball teams for men and women, ranked among the best in inter-factory competitions;
• a brigade of German-made motorcycles, performing races and stunt demonstrations;
• an orchestra that played not only revolutionary hymns, but also German-influenced classical Western music;
• literary clubs and publications, and a library furnished with Chinese and foreign (German) books;
• Jiuxianqiao hospital, featuring German equipment and offering the most advanced dental facilities in China.

The factory even had its own volunteer military reserves or jinweishi (近卫师), which numbered hundreds and were equipped with large-scale weapons and anti-aircraft guns.

Workers' skills were honed by frequent personnel exchanges, internships and training in cooperation with East Germany. Different incentives kept motivation high, such as rewards systems and "model worker" distinctions. At the same time, political activities such as Maoism study workshops kept the workers in line with Communist Party of China doctrine. During the Cultural revolution, propaganda slogans for Mao Zedong Thought were painted on the ceiling arches in bright red characters (where they remain today at the latter tenants' request).

Frequent VIP visits contributed to the festive atmosphere. Notable guests included Deng Xiaoping, Jiang Zemin, Liu Shaoqi, Zhu De, and Kim Il-Sung.

The Joint Factory produced a wide variety of military and civilian equipment. Civilian production included acoustic equipment for Beijing's Workers' Stadium and Great Hall of the People, as well as all the loudspeakers on Tiananmen Square and Chang'an Avenue. Military components were also exported to China's Communist allies, and helped establish North Korea's wireless electronics industry.

After 10 years of operation, Joint Factory 718 was split into more manageable components, such as sub-Factories 706, 707, 751, 761, 797 and 798. The first Head of sub-Factory 798 (the largest) was Branch Party Secretary Fu Ke (傅克), who played a major role in recruiting skilled workers from southern China and among returned overseas Chinese.

However, the factory came under pressure during Deng Xiaoping's reforms of the 1980s. Deprived of governmental support like many state-owned enterprises, it underwent a gradual decline and was eventually rendered obsolete. By the late 1980s and early 1990s, most sub-factories had ceased production, 60% of the workers had been laid off, and the remains of the management were reconstituted as a real-estate operation called "Seven-Star Huadian Science and Technology Group", charged with overseeing the industrial park and finding tenants for the abandoned buildings.