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12/18/2024

How Will Assad's Fall Benefit China? By: The China Academy Interview

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VOA reports that President Assad's fall in Syria has been a setback for China's Belt and Road Initiative. However, Chinese strategist Professor Wang Xiangsui argues that it could create new opportunities for the BRI in the Middle East and potentially accelerate the decline of U.S. unipolar dominance.
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​On November 8, Syrian opposition forces captured the capital, Damascus, marking the end of President Bashar al-Assad’s government. On the same day, Voice of America Chinese quickly declared that “China has lost an ally,” claiming that China’s Belt and Road investments in Syria would suffer losses amounting to tens of billions of dollars.

However, Chinese strategist Professor Wang Xiangsui argues that VOA’s assessment is entirely wrong. He believes the Syrian crisis is instead offer new opportunities for the Belt and Road Initiative (BRI) in the Middle East and could even accelerate the collapse of U.S. unipolar hegemony.

Firstly, Syria’s strategic value to the BRI is overhyped by the Western Media.

Syria is not located along the overland route of BRI. Additionally, Syria is not a major oil-producing country. According to British Petroleum’s statistics, Syria accounted for only 0.05% of global oil production as of 2016. China’s Ministry of Foreign Affairs reported that bilateral trade between China and Syria amounted to just $358 million in 2023. In comparison, China’s total import-export trade volume in 2023 was $5.94 trillion, according to the National Bureau of Statistics. This means Syria’s role in China’s foreign trade is negligible, with a direct impact of only 0.006%. Clearly, VOA has grossly exaggerated the implications of Syria’s situation for China’s overseas interests.
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Secondly, the upheaval in Syria could strengthen Iran-China cooperation.

In March 2021, China and Iran signed a 25-Year Comprehensive Cooperation Plan. However, progress in certain areas, particularly the oil and gas industries, has been slow due to disagreements over pricing and infrastructure development.  

Three years ago, Iran was reluctant to engage in full-scale confrontation with the U.S. or military conflict with Israel. But the civil war in Syria has fragmented Iran’s sphere of influence, cornering it in terms of core national interests.  

As direct conflict with the U.S. and Israel becomes increasingly inevitable, Iran’s need for collaboration with China will grow, creating greater urgency for substantive cooperation. This is advantageous for advancing the Belt and Road Initiative. Previously, one of the biggest challenges for the BRI was that China needed to explain to the Middle Eastern countries that the benefits of changing the status quo outweigh the risks, leaving it in a passive position during negotiations. Now, if the turmoil in Syria heightens the sense of urgency among international communities, they will be more inclined to cooperate with China, which would significantly benefit the BRI’s expansion.

Thirdly, Israel’s opportunism in Syria will deepen U.S. entanglement in the Middle East, hastening the decline of U.S. hegemony.

According to Al Jazeera, on December 8, Israeli forces occupied the Syrian-controlled area of the Golan Heights. This marks the first open entry of Israeli ground forces into Syrian territory since the Yom Kippur War. Such a military venture is bound to exacerbate tensions between Israel and the Arab world. In the next four years, this could trigger more conflicts, creating additional aid burdens for the U.S. as it supports Israel. Meanwhile, the White House will have no choice but to foot the bill, as the Trump administration has been dominated by pro-Israel officials. Future U.S. Ambassador to Israel Mike Huckabee and Secretary of State Marco Rubio are staunch Israel supporters, and even Trump’s daughter is married into a Jewish family.  

From Rome to Britain, every empire’s decline begins with a mismatch between ambition and capability. Trump recognized that spreading resources thin in Ukraine and Israel would weaken the U.S. in its competition with China and sought to refocus through his “America First” policy. However, Israel’s opportunism in Syria will make it impossible for him to realise this vision, as Israel will always take precedence over the U.S. in the current administration.

Prof. Wang points out that there will be no second “American Century.” What follows will not be a “Chinese Century” either but rather a truly multipolar world. What we are witnessing in Syria is an ulcer in the U.S.-led world order. With Syria now fragmented among various factions, we are witnessing the collapse of the old order, which has yet to give rise to a new one. During this transitional phase, nations have significant opportunities. However, it is evident that multipolarity will emerge as the dominant global trend.

​References

https://www.voachinese.com/a/a-look-at-sino-syrian-relations-upon-the-collapse-of-the-assad-regime-20241208/7891788.html

https://web.archive.org/web/20110615211258/http://www.bp.com/assets/bp_internet/globalbp/globalbp_uk_english/reports_and_publications/statistical_energy_review_2011/STAGING/local_assets/pdf/statistical_review_of_world_energy_full_report_2011.pdf

https://www.mfa.gov.cn/web/gjhdq_676201/gj_676203/yz_676205/1206_677100/sbgx_677104/

https://www.mfa.gov.cn/web/gjhdq_676201/gj_676203/yz_676205/1206_677172/sbgx_677176/

http://big5.www.gov.cn/gate/big5/www.gov.cn/lianbo/fabu/202404/content_6945047.htm

https://www.aljazeera.com/news/2024/12/8/israel-seizes-buffer-zone-in-syrias-golan-heights-after-al-assad-falls

Author

Wang Xiangsui
​

Deputy Secretary General, CITIC Foundation for Reform and Development Studies
​
Former Senior Colonel, People’s Liberation Army;

The China Academy Interview
​

​In-depth conversations on China’s future, without limits


This article was produced by The China Academy.

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10/5/2024

The U.S. Is Fabricating Foes to Conceals Its Own Unfreedom By: Carlos L. Garrido

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In 1989 Francis Fukuyama famously proclaimed that we had arrived at the “end of history.” Capitalist liberal “democracy” was cherished as the culmination point of humanity’s development, proven in the defeat of “communism” it achieved in the so-called “Cold War.”
​

More than three decades have passed and that world which was supposed to be final is itself coming to an end. It was an interesting “end of history,” where the U.S. waged uninterrupted wars in the global South (especially the Middle East) which took the lives of tens of millions, and which displaced many more.
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​However, it is clear to even the most dogmatic defenders of the old unipolar world that we are in a period of revolutionary transition. The logic which animates geopolitical relations is being radically altered. The days were the U.S. unilaterally imposed its will on the world are coming to an end. Today a new, multipolar geopolitical logic is being born, and it is governed by a mutual respect between nations and civilizations, and an intercourse of trade based on win-win, not win-lose, relations.

It is fair to say, then, that we are living in the “end of the end of history.”

This should not have been unexpected for anyone with the slightest awareness of history itself. History shows that development is an ever-going phenomenon; it demonstrates that everything that comes to be, irrespective of how final and secure it may at first appear, will eventually, as Goethe said, “perish wretchedly.”

The “end of history” was never the “end of history.” It was simply a period were the U.S.’s imperialist power could go unchallenged by any formidable rival. The “end of history” was nothing but a short interlude in a global struggle against Western imperialism, wherein the U.S. held on to a ceaselessly weakening unipolar dominance.  

This short interlude provided the time for a resurgence of global powers that could challenge the U.S.’s plan for a “New American Century.” These new global powers, such as China, Russia, Iran, etc., are working upon the legacy of rich ancient civilizations, whose millennium-long cultural insights and experience they have managed to incorporate into their rapid modernization. It has been a modernization, importantly, which has been free of the perils which accomplished Western capitalist “modernization,” namely, the genocide of the Amerindian populations, the African slave trade, and centuries of colonialism, neocolonialism, and imperialism. Internally, far from witnessing the extreme national inequalities which accompanied growth in the capitalist West, these civilizations have managed, as China says, to promote “common prosperity,” to greater or lesser extents, amongst their people. It has genuinely been a tide that has lifted all, or at least most, boats.
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​For the German philosopher, G. W. F. Hegel, “the History of the world is none other than the progress of the consciousness of Freedom… Freedom is the sole truth of Spirit.” Fukuyama’s phrase on the “end of history” was first uttered by Hegel, who proclaimed that the “History of the World travels from East to West… Europe is absolutely the end of History.” If history is understood as the development of the self-consciousness of the concept of freedom, as Hegel understood it, then “the East knew only that One is Free; the Greek and Roman world, that some are free; [and] the German-Christian World knows that All are free.”

In terms of conceptual recognition, the West today continues to recognize that “all are free.” In fact, it precisely carries out its imperialist operations around the world under the auspices of promoting freedom, democracy, and equality. It uses the concepts of freedom, democracy, and equality to entrench the most profound real unfreedoms, tyrannies, and inequalities in the world. Far from allowing the self-consciousness of the concept of freedom be the means through which actual freedom is realized, a superficial, merely formal recognition of freedom is sustained precisely to reproduce unfreedom in actuality.

Furthermore, through its mass media and indoctrinating educational system, it prevents its population from even accessing the appropriate lexicon through which to communicate such unfreedom. The unfreedoms experienced can never be an inherent feature of the system; ultimate responsibility is always externalized to some pariah “other.”
​
The unfreedoms of the American people are thus blamed on China, Russia, Iran, etc., and not on the U.S. capitalist system that produced them. In doing so, a dual effect is produced:

1) blame for the real unfreedom is exported to a convenient “other” who challenges U.S. imperial power, and 2) in externalizing the responsibility for your conditions of unfreedom, the limitations to your power appear merely external, i.e., you continue to operate as if you are still free, but “blocked off” from realizing such freedoms by the boogeyman “other.”

Paradoxically, this predicament was eloquently expressed by a Western philosopher who always manages to make support for the imperialist West seem “progressive,” Slavoj Žižek, who noted that “we ‘feel free’ because we lack the very language to articulate our unfreedom.”

Instead of thinking about freedom’s relationship with historical development as conceptual, we should think of it in terms of actuality. The same Hegel which suggests that we think of historical development as the universalizing of the concept of freedom, also equips us with a concrete conception of universality which readily provides us with the tools to affect this turn. In his Lectures on the History of Philosophy, Hegel writes that “Man knows what he is, and only when he does so is he actually what he is. Without this, knowing reason is nothing, nor is freedom.” We can be as self-conscious of our freedom as we want, but if there isn’t actual freedom in our lives, that self-consciousness of freedom is empty and hollow. It is merely freedom in form, without content.  

Therefore, Hegel writes that “Freedom can, however, be also abstract freedom without necessity, which false freedom is self-will, and for that reason it is self-opposed, unconsciously limited, an imaginary freedom which is free in form alone.” This is the empty, indeterminate freedom we have in the West. As the French philosopher Michel Clouscard articulated, it is a freedom where “everything is allowed but nothing is possible.” Freedom is always determinate; it is precisely the recognition of necessity, and the ability to positively act upon such a recognition.

This recognition of necessity, in the contemporary social conjuncture, is fundamentally a recognition of the laws of social development shaping our social trajectory. If we are not aware of the real systemic forces that produce the changes we observe in our world, we neither have the recognition of necessity nor the ability to affect our trajectory. This is what the ideological apparatuses of the West, the media, the schools, and the entertainment industry, provide the current social order, namely, the ability to prevent people from recognizing necessity. Even in times of deep social crisis – such as the crisis of legitimacy prevalent in the U.S. – the institutions of knowledge production provide ready-made alternative explanations for the reality at hand. As mentioned earlier, there is always an “other” upon which blame could be placed. This, therefore, systematically produces a recognition of false necessity, and hence, an unfreedom experienced as freedom.  

If we understand history as the history of the actuality of freedom, it is evident that we are far from its “end.” However, the collapse of the Western capitalist order that once fooled Hegel into seeing in its abstract proclamation of freedom the “end of history” (a mistake much more unforgiveable when it occurs almost two centuries after with Fukuyama), is a positive step in humanity’s trajectory towards real freedom. The recognition of our recognition of a false necessity, therefore, stands as an important mediational moment for our recognition of real necessity.

Multipolarity is opening the world to what Marx called the “realm of freedom” by recognizing the laws of capitalist social development, and actively intervening to undermine them. This is, fundamentally, what is at stake when countries like China, Russia, Iran, etc. place social and common good over and above the accumulation of capital. That supremacy of capital which warrants labeling the system capital-ISM is being actively undermined by the multipolar world. While this change, as Hegel said, “imports dissolution, [it] involves at the same time the rise of a new life.” The new world being born, as economist Oscar Rojas has described it, is premised on international relations between “associated free producers,” i.e., sovereign countries engaging in win-win geopolitical relations, and is leading humanity into a “communitarian mode of production,” where the aims of socially carried out production are not the accumulation of capital in private hands, but social utility and benefit.

Hegel was right, then, about the sun of world-history setting in the West. But its setting has long passed. Today humanity is in an astronomical dawn. Once again, the sun is rising in the East. While it is not fully out, its light has become visible. A new day is here.

Author

Carlos L. Garrido is a Cuban American philosophy professor. He is the director of the Midwestern Marx Institute and the Secretary of Education of the American Communist Party. He has authored many books, including The Purity Fetish and the Crisis of Western Marxism (2023), Why We Need American Marxism (2024), Marxism and the Dialectical Materialist Worldview (2022), and the forthcoming On Losurdo's Western Marxism (2024) and Hegel, Marxism, and Dialectics (2025). He has written for dozens of scholarly and popular publications around the world and runs various live-broadcast shows for the Midwestern Marx Institute YouTube. You can subscribe to his Philosophy in Crisis Substack HERE.


This article was published originally in The China Academy. ​

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9/18/2024

China embodies American Ideals better than the U.S. By: Carlos L. Garrido

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​In leading foreign policy magazines across the United States, the rise of China is treated as a threat which the U.S. must effectively challenge. Since at least President Barack Obama’s 2011 “pivot to Asia,” American foreign policy has been crafted towards “containing” China, and “de-linking” it from the global economy.

As has been historically the case for all empires, its treatment of its up-and-coming competition has required various tactics of dehumanization. In the eyes of their population, they need the competitor to appear as a barbaric “other,” a being fully foreign to everything their people hold sacred. This is how hybrid wars against the “otherized” country are legitimated in the native population; fear of one’s way of life being threatened drives people who have no real, material interest in supporting these policies into supporting them.

The “pivot to Asia” has been conjoined with a healthy dose of Sinophobia. Even the propaganda spewed about China itself presupposes orientalist tropes about the “backwards” Eastern peoples more predisposed to despotism than the “enlightened” Westerners. Without this ideological basis, the media’s job of convincing Americans that China is ran by an autocratic “dictator,” who somehow calls all the shots in a country of 1.4 billion people, would be significantly harder. It is a predisposed dehumanization of the Chinese that premises the acceptance of baseless claims about a “Uyghur genocide,” for which those who have plundered the predominantly Muslim countries of the Middle East for a century have never provided evidence for.

But is there any basis in this otherization? Is the “Chinese dream” and way of life really that different from the ideals that regular American people hold as common sense? All evidence points to the contrary. In many ways, the reality Chinese people experience with their socialist democracy lives up to the American ideals far better than the reality Americans experience in the U.S. itself.
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​The most influential American thinkers and leaders in American history, those whose insights have crystallized into the common sense of many Americans, have all been distrustful of those who consider it their main purpose to simply accumulate capital at the expense of society.

Thomas Jefferson, for instance, held that there was a fundamental distinction between the aristocratic and democratic man: the former is rooted in big business elitism, the latter in the people’s will. Jefferson considered that if the aristocratic man came into power, the American experiment in democracy would be threatened. Hindsight has shown how right he was!

Abraham Lincoln, for instance, held that “labor is the superior of capital, and deserves much the higher consideration.” For Lincoln, the substance of the American project was “government of the people, by the people, for the people,” as he eloquently stated in his Gettysburg Address. He would be disappointed to see how today we have government of, by, and for big corporations, investment firms, and banks.

In the 20th century, no American thinkers are as influential as the polymath, John Dewey, and the brilliant Civil Rights leader, Martin Luther King Jr. While every year American politicians pay lip service to Dr. King, and while Dewey’s literal nickname was “America’s philosopher of democracy,” what is often left out of the conversation was how both were vehemently critical of how America was failing to live up to its democratic ideals, and how, if it wanted to make these ideals real, it required some form of socialism.

Dr. King argued that “if a man doesn’t have a job or an income, he has neither life, nor liberty, nor the possibility for the pursuit of happiness. He merely exists.” China’s efforts in lifting 800 million out of poverty and eliminating absolute poverty would align with Dr. King’s understanding of what is required for authentic American democracy far greater than the condition most American working people live in, more than 60% of which are a lost paycheck away from homelessness and most of which are drowning in debt-slavery.

Likewise, for Dewey we must stop thinking about democracy as something “institutional and external;’” instead, we should treat democracy as a “way of life,” one governed by the “belief in the common man.” For Dewey, genuine democracy is a consistent practice. It has less to do with showing up to a poll every two to four years and more to do with the ability of common people to steadily exert their collective power over the affairs of everyday life. Dewey would conclude that the ideals of the founders would be realized “only as control of the means of production and distribution is taken out of the hands of individuals who exercise powers created socially for narrow individual interests.” It is in China, where capital is forced to serve the people and not the other way around, where this vision is most plentifully realized.

Dewey would wholeheartedly agree with Chinese president Xi Jinping, who asserted that “democracy is not an ornament to be used for decoration; it is to be used to solve the problems that the people want to solve.” As Xi Jinping has noted,

If the people are awakened only at the time of voting and go into dormancy afterward; if the people only listen to smashing slogans during election campaigns but have no say afterward; if the people are only favored during canvassing but are left out after the election, such a democracy is not a true democracy.

One could see words like these coming out of the mouths of a John Dewey or a Martin Luther King Jr. The ideas governing China’s socialist whole-process people’s democracy should look anything but foreign to Americans – it is what our leading democratic theorists hoped the US system would develop into. If Americans are faithful to the democratic creed of the Declaration of Independence, and to the leading theorists of our country, who have developed these into notions of socialist democracy with American characteristics, then we should be praising China for how incredibly comprehensive their socialist democracy is.

Instead of accepting the lies U.S. politicians and media spew, all of which are aimed are “otherizing” and “demonizing” China, the American people must realize that it is China where the American ideals are best embodied. Professor Zhang Weiwei is, without a doubt, correct to point out that Lincoln’s dictum “of, by, and for the people,” is much more substantially realized in China.

Instead of accepting the easily disprovable lies of U.S. officials, who in condemning China are themselves standing in an anti-American position, the American people should fight to realize Lincoln’s vision. When our government is actually of, by, and for the people, the conditions will be present for us seeing China’s rise not as a threat we must contain, but an effort we can applaud. Ultimately, if Americans are faithful to their democratic creed, they will realize that we must learn from China and work together to build a peaceful, cooperative, and ecological shared future for mankind.

Author

Carlos L. Garrido is a Cuban American philosophy professor. He is the director of the Midwestern Marx Institute and the Secretary of Education of the American Communist Party. He has authored many books, including The Purity Fetish and the Crisis of Western Marxism (2023), Why We Need American Marxism (2024), Marxism and the Dialectical Materialist Worldview (2022), and the forthcoming On Losurdo's Western Marxism (2024) and Hegel, Marxism, and Dialectics (2025). He has written for dozens of scholarly and popular publications around the world and runs various live-broadcast shows for the Midwestern Marx Institute YouTube. You can subscribe to his Philosophy in Crisis Substack HERE.


This article was published originally in The China Academy. 

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9/18/2024

Front Row at Putin's Speech: Here Are What Will Shatter Your Perceptions By: Zhang Weiwei

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​The St. Petersburg International Economic Forum began in 1997. Since 2006, the Russian president has attended and spoken at the forum every year. In 2024, more than 21,000 people from 139 countries and regions participated in the forum, signing over 980 agreements with a total value of 520 billion yuan. Professor Zhang Weiwei was deeply inspired by President Putin's keynote speech.
At the start of this June, invited by The Ministry of Foreign Affairs of the Russian Federation, I attended the St. Petersburg International Economic Forum in Russia, a large-scale economic forum of utmost importance in Russia. The focus of the forum was on “The Formation of New Centers of Growth as The Cornerstone of a Multipolar World.” More than 12,000 members of various professions from more than 100 countries attended the forum. Russian President Putin made a keynote speech, of which some opinions are very impressive.
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​First of all his brief on the global trend, where he expressed that all countries in the world are enhancing sovereignty in three aspects: national sovereignty, cultural value sovereignty, and economic sovereignty. I find this inspiring.

Secondly, he made a judgment on the world economic situation, stating that China has already emerged as the top economy globally. Although he did not explicitly mention the second-ranked economy, it is widely understood to be the United States. This is what I often express on Chinese television programs., China’s economy, measured by purchasing power parity, surpassed that of the US as early as 2014, a decade ago.

Putin then discussed how, according to purchasing power parity, India is poised to become the third-largest economy. He also emphasized the high birth rate, relatively low level of urbanization, and rapid economic growth in the South Asia region where India is situated.

Thirdly, regarding the Russian economy, he stated that Russia’s objective is to become the fourth-largest economy in the world. He then spontaneously mentioned that the World Bank had recently revised its statistics, indicating that Russia had surpassed Japan to claim the fourth spot in terms of economic scale, based on purchasing power parity. The audience erupted into enthusiastic applause at this announcement, prompting Putin to advise everyone to maintain a modest demeanor.

He emphasized, “We have now overtaken Japan and Germany, albeit by a slight margin, which we aim to sustain and expand. It is imperative for us to ensure high-speed, high-quality growth in the long term, considering that other nations, such as Indonesia, are rapidly advancing with their growing population and swift economic progress.”

Putin referenced data released by the World Bank at the end of May this year: as of the end of 2023, the global economic rankings by purchasing power parity are as follows: China in first place with 35 trillion dollars, the United States in second with 27.4 trillion dollars, India in third with 14.6 trillion dollars, Russia in fourth with 6.45 trillion dollars, and Japan in fifth with 6.3 trillion dollars. Based on these figures, China’s economy is approximately equivalent to 5.5 times that of Japan and 128% of the United States’.

The shift towards utilizing purchasing power parity as a measurement is significant for Russia, as it is perceived as a more realistic indicator. Historically, Russia had been using nominal GDP calculated by official exchange rates, resulting in a significant underestimation of its economic size and portraying a position of weakness to the West. This miscalculation led to five expansions of NATO towards the east and continuous humiliation of Russia. Presently, Russian leaders predominantly rely on purchasing power parity standards to evaluate their economic standing.

Then Putin continued on the status of Russia’s economic development and structural adjustment, with which he pointed out Russia’s GDP growth rate was 3.6% last year, above the world average. He especially mentioned how this growth comes mainly from non-resource areas. The Russian economy was, by the time of the Soviet Union’s collapse and under the influence of neo-liberalism ideology, driven afar from reality, and relied on selling resources for a long time. After Putin took presidency the situation changed. According to himself, in 2023, non-resource industries like manufacturing, architecture, logistics, information, agriculture, and electricity have grown by over 45.5%.

Some claim that Russia is only getting a higher growth rate for its war-time economy, yet from our own eyes we have seen these years Russia rebuilt. A large batch of Chinese enterprises are actively investing in Russia as well. Although Russia is bearing over 15000 various Western sanctions, the Russian market is still prospering, essentials are well-supplied, and many goods from China, including cars, phones, and appliances are seen all around.

Putin also talked about how Russia’s exporting commerce has grown immensely, and the share of “poisonous currencies” from unfriendly nations has decreased by half. Over 40% of exchanges use Russian rubles.

The concept of “poisonous currency” was first raised among Russian scholars to describe Western currencies like US dollars, now it is also widely used among Russian leaders like Putin himself. This shows Russia’s unique understanding of Western currencies like dollars, and worth our thinking as well.

During the speech, Putin also stressed that global development has shifted its center from Europe to Asia, “we should get closer to these centers of development”. Russia’s “Turning East” is not a temporary move, but a progress that is happening around the world.
After his speech, the esteemed Russian political scholar Sergey Karaganov posed an intriguing question to Putin. He mentioned that Peter the Great had intentionally constructed St. Petersburg as a gateway to Europe, securing his place in history. Karaganov asked why Putin couldn’t make a similar decision to establish a grand city in the Far East.

In response, Putin stated that Russia could explore the possibility of creating a third metropolis in Russia, emphasizing that such endeavors should not rely solely on administrative directives but rather on the cultivation of appealing conditions.

Putin explained that the development of St. Petersburg was driven by the economic hub being located in Europe at that time. With the global economic center now shifted to Asia, he emphasized the importance of Russia turning its focus towards Asia and vigorously advancing economic growth in the Far East. During his visit to China, Putin made a special trip to Harbin.

The Chinese Foreign Minister, Wang Yi, also visited the Far East region of Russia, including Irkutsk. I see these visits as significant signals indicating the acceleration of cooperation between Russia and China in developing the Far East. During his visit to Irkutsk, Wang Yi remarked that China is actively advancing its modernization process in Chinese model while Russia is expediting the development of the Far East, presenting both countries with a historic opportunity for collaboration. Local partnerships play a crucial role in the China-Russia relationship.

I personally believe that joint cooperation in the development of the Far East region will bring substantial benefits to both nations. From China’s perspective, this collaboration will enhance the long-term energy and resource security needed for China’s economic growth. From Russia’s standpoint, it will contribute to reshaping the spatial layout of the Russian economy, creating a new hub for economic growth.

Author

​Zhang Weiwei
Professor of Political Science; Director the China Institute of Fudan University


This article was produced by The China Academy.

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9/17/2024

Western Media Is Too Late To Defend Its Hegemony By: Zhang Weiwei

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On China's top current affairs show, A prestigious China scholar Zhang Weiwei explores how the four pillars of Western hegemony—economic, technological, military, and ideological—are deeply shaken today.
At a technological level, the rise of the non-Western world, particularly China, is striking. During this year’s March Two Sessions, our Minister of Science and Technology, Yin Hejun, informed both domestic and foreign journalists that China has achieved a significant number of original breakthroughs in fields such as quantum technology, integrated circuits, artificial intelligence, biomedicine, and new energy. The export growth rates of EV cars, lithium batteries, and photovoltaic components – collectively known as the “New Three” – are remarkably promising. The Wall Street Journal reported on this development with the headline “The World Is in for Another China Shock.”

My friend forwarded me a fascinating blog post where the author made some intriguing points. The author mentioned that these “New Three” are truly formidable because China has managed to produce them at such a low cost, akin to the “rock-bottom prices.” Over the past three years of the pandemic, amidst US lockdowns and sanctions, China has been expanding its production capacity in a counter-cyclical manner, while the Western countries are moving towards deindustrialization. With high-interest rates in the US, Europe and Russia drifting apart, leading to soaring resource costs, one might wonder how their manufacturing sectors will fare. China’s next move is poised for a comprehensive breakthrough in the chip industry chain. Once achieved, it’s uncertain what headline the Wall Street Journal might come up with next. Could it be “The Shock of China’s Shock”?

In the realm of military affairs, shortly after Biden took office, in August 2021, the US military made a hasty withdrawal from Afghanistan. A chaotic scene unfolded at Kabul Airport as fleeing crowds chased planes on the runway, and Afghan individuals clinging to aircrafts tragically fell to their deaths. German President Steinmeier remarked that this harrowing situation at Kabul Airport was a disgrace for the United States and the Western world. Former US President Trump criticized Biden, stating, “This is the most embarrassing moment in our country’s history.” He added, “If China sees this, they must be delighted, the Chinese are laughing at us.” When asked about Trump’s comments, our Foreign Ministry spokesperson Hua Chunying responded, “Is there even a need for us to laugh at?”

In recent months, the Yemeni Houthi militia has been targeting British and American merchant vessels in the Bab-el-Mandeb Strait under the guise of supporting the Palestinian people. Despite the deployment of US and UK warships for protection, the situation remains tense, with reports of British ships being sunk. The Houthi group continues to launch missiles at British and American vessels, causing concern over the US’s ability to contain the situation and maintain its military dominance.

The American conservative think tank, The Heritage Foundation, went as far as suggesting on its website that if merchant ships from around the world start seeking protection from China instead of the US, it could signify a shift from the “American century” to the “Chinese century.” While the author expressed relief that Beijing has not yet taken on this role, it is a viewpoint that warrants serious consideration.

In the realm of ideology, the soft power of the US and the West is declining at an accelerated pace. For a long time, the US has cloaked itself in the banners of “Democracy, Liberty, Human Rights”, employing deceptive tactics to incite “Color Revolutions” worldwide, resulting in political turmoil and economic decline in numerous nations. The “Arab Spring” that erupted around 2011 ultimately led to the fragmentation of Libya and Yemen, with Syria enduring devastating levels of destruction. International evaluations indicate that the “Arab Spring” inflicted approximately $900 billion in damages to the infrastructure of countries such as Syria, Iraq, Libya, and Yemen, forcing over 15 million people into refugee status.

Ukraine, deeply immersed in Western ideology, has faced a tumultuous fate. The “Orange Revolution” in 2004 and the “Euromaidan Revolution” in 2014 have left their mark. During the chaos at Independence Square in Kyiv in 2014, then Assistant Secretary of State Victoria Nuland personally visited to support the pro-Western faction in Ukraine. However, this key figure behind the Ukrainian “Color Revolution” and the conflict with Russia has recently “resigned.” This move is widely seen as a sign of the failure of Biden’s Ukraine strategy. Sadly, the Ukrainian people, through what they believed to be democratic means, elected a leader who unquestioningly follows the US’s lead. The outcome is a land in ruins, with widespread devastation and despair.

Personally, Ukraine gave me some special memories, because it was the 100th country I researched, and it was from July 17th to 21st, 2006. That was also my last stop in East Europe’s former Socialist countries. I have drawn a careful conclusion to my practical study: a non-western country or non-western region, if transplanted with a Western political system, could only yield one of two: from hope to disappointment, or from hope to desperation.
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Now the Western world itself is experiencing constantly from hope to disappointment, maybe some would even face desperation in the future. I remember on January 6th, after the riots on Capitol Hill, Richard Haas, the chairman of the Council on Foreign Relations, exclaimed in a post, “From now on, no one in the world will see, respect, fear, or rely on us America in the same way. If there is a starting date for the ‘post-American era,’ it is almost certainly today.”
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This year the entire world shall witness American inferior democracy stepping lower into deteriorate. British media The Guardian posted an article on its website shows that over 80% of US citizens are worried about the American democratic system and future Political violence. It is one of the not much agreement the two parties may gather, that the US will get itself into such disaster.

Great Britain is not so much better, the same media The Guardian quoted a poll on March showing that 79% of the participants think of British politicians as “non-listeners to average people’s opinions”, while 43% think “the UK is downfalling”.
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In conclusion, the four pillars of Western hegemony – Economic, Technological, Military, and Ideological – are deeply shaken today, and various reliable alternatives have emerged. Allow me to share a commentary we made shortly after the outbreak of the Russia-Ukraine conflict as a fitting conclusion, showcasing the practicality of our assessment. At that time, I expressed: the conflict once again proves that the world has entered a “post-American era.” The age of US dominance as the sole superpower has ended, and the US can no longer dictate the course of the world. Consequently, a series of US-led institutional arrangements, including alliances like NATO and the status of the US dollar hegemony, may gradually decline. A truly multipolar international order will emerge through the dynamic interplay of revolution, reform, and turbulence.

Author

Zhang Weiwei
Professor of Political Science; Director the China Institute of Fudan University


This article was produced by The China Academy.

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7/17/2024

The Xinjiang I saw was a hub of diversity, not oppression By: Roger McKenzie

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​Originally published: Morning Star Online  on July 5, 2024 by Roger McKenzie (more by Morning Star Online)  |  (Posted Jul 10, 2024)
THE Chinese autonomous region of Xinjiang is at the geographical centre of Eurasia.

The region borders eight other countries which makes it a vital part of Chinese plans for the greater integration of Eurasia and the westward opening up of this nation of 1.4 billion people.

The Comprehensive Bonded Zone in the city of Kashi is central to co-ordinating the booming trade links that China has established with its immediate neighbours.

Xinjiang, one of the largest regions in China, is a gateway to Russia, India, Pakistan, Mongolia, Kyrgyzstan, Tajikistan, Kazakhstan and Afghanistan.

It occupies around 643,000 square miles of China–a space larger than six Britains.

Its sparse population of approximately 25 million is mainly Muslim and made up of around 65 different ethnic groups including Chinese Han, Uighurs, Kazakhs and Hui, among others.

I lost count of the number of mosques that I saw during my recent trip.

I visited a thriving Islamic Centre in the city of Urumqi–which has received millions in funding from the Chinese government for its development to teach its around 1,000 students.

I had the honour of sitting in the mosque’s main hall attached to the centre alongside the imam and hearing him talk about the support the centre had received from the government.

I also visited the magnificent and extremely busy Id Kah Mosque in the city of Kashi.

Both times the imams took the time from their busy schedules to speak about how grateful they and worshippers at the mosque are for the support provided by the government.

They told me about how the right to worship any religion is considered a private matter in China and protected in law.

That’s why it provides funds to a wide range of religious bodies representing Muslims, Buddhists and Christians among others.

None of this is recognised in the West. Instead tall tales are told about supposed widespread religious persecution.

In particular Western politicians and their stenographers in the corporate media continue to spin untruths about the treatment of religious minorities.

To be crystal clear: at no time did I witness any attempt to block anyone from being able to worship according to the Islamic faith or, for that matter, any other religion.

I heard no criticism of the government over religious persecution from senior religious figures or anyone else I met during my visit.

I was never stopped from speaking with anyone in any of the large crowds of people that I found myself in across the region.

Having made the effort to actually visit five cities in 10 days in the region rather than pontificate from thousands of miles away, I can honestly say that for a country that supposedly routinely oppresses ethnic minorities China seems to spend an inordinate amount of time celebrating them.

By that, I don’t mean the half-arsed patronising so-called celebration of diversity that now appears customary across Britain.

Leading figures in Britain trip over themselves to take a knee and say how much black lives matter to them but continue to do nothing about racism in their organisations.

It doesn’t look to me like a Black History Month-type gig where a big show is made for a short tokenistic period and then ignored for the rest of the time.

Talking up the richness of the region’s cultural diversity wasn’t just an isolated thing in Xinjiang–it was everywhere. Celebrations of the Islamic culture were everywhere for anyone to see.

I can already hear some saying that either I wasn’t looking hard enough or I was having the wool pulled over my eyes. I did look hard and I don’t believe an elaborate hoax was being played on me.

I spoke with lots of people in private with no restrictions placed on me whatsoever. In fact, my dreadlocks, and I dare say, the colour of my skin, meant I was a target of curiosity, especially among the young, many of who wanted to come and chat and have a photo taken with me.

That was frankly the most uncomfortable thing about the trip!

What I saw was lots of people going about their business in much the same way as I have seen people trying to do in many parts of the world.

I met many Communist Party officials who were questioned over the allegations made against them and their country. All of them said the only way to counter the propaganda war being waged against them was for people to come and see for themselves.

They told me how hard they were working to open up the region to more tourism so that people could experience this beautiful area but also so more people could bear witness to the truth about them.

So why is this propaganda war being waged against China in general and in particular against Xinjiang?

The geographical position of the region provides the answer. As the centre of the Silk Road renaissance, the region will be the focal point of Chinese trade and its economic heartbeat.

It means the continuing economic growth of China is disproportionately linked to Xinjiang.

Its trade routes through its eight neighbours to its wider partners will be critical to sell Chinese-made goods as well as to buy the resources needed to continue to power the country’s economy.

The U.S. is the world’s leading economy and wants to keep it that way. Its doctrine of Full Spectrum Dominance asserts that it will use any means necessary to maintain the pre-eminence of U.S. capital.

I think we can take this to mean that the U.S. will not hesitate to spread misinformation about China. After all, it’s not as if the U.S. does not have form for this type of behaviour.

They have been doing it for years, particularly across Africa and Central America where they buy organisations to ferment internal dissent against governments deemed not to be compliant.

Sprinkled with an always unhealthy dose of sinophobia the move by the U.S. to undermine the reputation of China has largely economic foundations and false allegations of mistreatment against ethnic minorities–particularly the Uighurs–are completely without foundation.

On the contrary, there seems to me to be far more evidence of the Chinese at a national and regional level actively celebrating cultural diversity as well as striving to put in place the economic prosperity that looks as though it is undermining attempts by terrorist groups–likely funded by the West–to sow discontent in Xinjiang.

I will talk about this and the allegations of forced labour in some detail in the second part of this three series about my visit to China. In the meantime, to anyone reading this article in disbelief and who believes that either I am lying or have been the victim of what would be a truly elaborate hoax my suggestion is: go and see for yourself.

It’s a long way away but I honestly believe you will be surprised by the wonderful vibrant people and cities that will greet you.

This is the first of three eyewitness articles from Morning Star international editor Roger McKenzie on his recent visit to China.

Author

​Roger McKenzie


This article was produced by Morning Star. 

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2/28/2024

China’s economy is still far out growing the U.S. – contrary to Western media “fake news. By: John Ross

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GDP data for China, the U.S., and the other G7 countries for the year 2023 has now been published. This makes possible an accurate assessment of China’s, the U.S., and major economies performance—both in terms of China’s domestic goals and international comparisons. There are two key reasons this is important.
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  • First for China’s domestic reasons: to achieve a balanced estimate of China’s socialist economic situation and therefore the tasks it faces.
  • Second, because the U.S. has launched a quite extraordinary propaganda campaign, including numerous straightforward factual falsifications, to attempt to conceal the real international economic facts.

The factual situation is that China’s economy, as it heads into 2024, has far outgrown all other major comparable economies. This reality is in total contradiction to claims in the U.S. media. This in turn, therefore, demonstrates the extraordinary distortions and falsifications in the U.S. media about this situation. It confirms that, with a few honourable exceptions, Western economic journalism is primarily dominated by, in some cases quite extraordinary, “fake news” rather than any objective analysis. Both for understanding the economic situation, and the degree of distortion in the U.S. media, it is therefore necessary to establish the facts of current international developments.

China’s growth targets

Starting with China’s strategic domestic criteria, it has set clear goals for its economic development over the next period which will complete its transition from a “developing” to a “high-income” economy by World Bank international standards. In precise numbers, in 2020’s discussion around the 14th Five Year plan, it was concluded that for China by 2035: “It is entirely possible to double the total or per capita income”. Such a result would mean China decisively overcoming the alleged “middle income trap” and, as the 20th Party Congress stated, China reaching the level of a “medium-developed country by 2035”.

In contrast, a recent series of Western reports, widely used in anti-China propaganda, claim that China’s economy will experience sharp slowdown and will fail to reach its targets.

Self-evidently which of these outcomes is achieved is of fundamental importance for China’s entire national rejuvenation and construction of socialism—as Xi Jinping stated, China’s: “path takes economic development as the central task, and brings along economic, political, cultural, social, ecological and other forms of progress.” But the outcome also affects the entire global economy—for example, a recent article by the chair of Rockefeller International, published in the Financial Times, made the claim that what was occurring was China’s “economy… losing share to its peers”. The Wall Street journal asserted: “China’s economy limps into 2024” whereas in contrast the U.S. was marked by a “resilient domestic economy.” The British Daily Telegraph proclaimed China has a “stagnant economy”. The Washington Post headlined that: “Falling inflation, rising growth give U.S. the world’s best recovery” with the article claiming: “in the United States… the surprisingly strong economy is outperforming all of its major trading partners.” This is allegedly because: “Through the end of September, it was more than 7 percent larger than before the pandemic. That was more than twice Japan’s gain and far better than Germany’s anaemic 0.3 percent increase.” Numerous similar claims could be quoted from the U.S. media.

U.S. use of “fake news”Reading U.S. media claims on these issues, and comparing them to the facts. it is impossible to avoid the conclusion that what is involved is deliberate “fake news” for propaganda purposes—as will be seen, the only alternative explanation is that it is disgracefully sloppy journalism that should not appear in supposedly “quality” media. For example, it is simply absurdly untrue, genuinely “fake news”, that the U.S. is “outperforming all of its major trading partners”, or that China has a “stagnant economy”. Anyone who bothers to consult the facts, an elementary requirement for a journalist, can easily find out that such claims are entirely false—as will be shown in detail below.

To first give an example regarding U.S. domestic reports, before dealing with international aspects, a distortion of U.S. economic growth in 2023 was so widely reported in the U.S. media that it is again hard to avoid the conclusion that this was a deliberate misrepresentation to present an exaggerated view of U.S. economic performance. Factually, the U.S. Bureau of Economic Analysis, the U.S. official statistics agency for economic growth, reported that U.S. GDP in 2023 rose by 2.5%—for comparison China’s GDP increased by 5.2%. But a series of U.S. media outlets, starting with the Wall Street Journal, instead proclaimed that the “U.S. economy grew 3.1% over the last year”.

This “fake news” on U.S. growth was created by statistical “cherry picking”. In this case comparing only the last quarter of 2023 with the last quarter of 2022, which was an increase of 3.1%, but not by taking GDP growth in the year as a whole “last year”. But U.S. growth in the earlier part of 2023 was far weaker than in the 4th quarter—year on year growth in the 1st quarter was only 1.7% and in the 2nd quarter only 2.4%. Taking into account this weak growth in the first part of the year, and stronger growth in the second, U.S. growth for the year as a whole was only 2.5%—not 3.1%. As it is perfectly easy to look up the actual annual figure, which was precisely published by the U.S. statistical authorities, it is hard to avoid the conclusion that this was a deliberate distortion in the U.S. media to falsely present a higher U.S. growth rate in 2023 than the reality.

It may be noted that even if U.S. GDP growth had been 3.1% then China’s was much higher at 5.2%. But the real data makes it transparently clear that China’s economy grew more than twice as fast as the U.S. in 2023—showing at a glance that claims that the U.S. is “outperforming all of its major trading partners”, or that China has a “stagnant economy” were entirely “fake news”.

Many more examples of U.S. media false claims could be given, but the best way to see the overall situation is to systematically present the overall facts of growth in the major economies.

What China has to do to achieve its 2035 goalsTurning first to assessing China’s economic performance, compared to its own strategic goals of doubling GDP and per capita GDP between 2020 and 2035, it should be noted that in 2022 China’s population declined by 0.1% and this fall is expected to continue—the UN projects China’s population will decline by an average 0.1% a year between 2020 and 2035. Therefore, in economic growth terms, the goal of doubling GDP growth to 2035 is slightly more challenging than the per capita target and will be concentrated on here—if China’stotal GDP goal is achieved then the per capita GDP one will necessarily be exceeded.

To make an international comparison of China’s growth projections compared with the U.S., the U.S. Congressional Budget Office (CBO), responsible for the official growth projections for the U.S. economy on which its government’s policies rely, estimates there will be 1.8% annual average U.S. GDP growth between 2023 and 2023—with this falling to 1.6% from 2034 onwards. This figure is slightly below the current U.S. 12-year long term annual average GDP growth of 2.3%—12 being the number of years from 2023 to 2035. To avoid any suggestion of bias against the U.S., and in favour of China, in international comparisons here the higher U.S. number of 2.3% will be used.

The results of such figures are that if China hits its growth target for 2035, and the U.S. continues to grow at 2.3%, then between 2020 and 2035 China’s economy will grow by 100% and the U.S. by 41%—see Figure 1. Therefore, from 2020 to 2035, China’s economy would grow slightly more than two and a half times as fast as the U.S.
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The strategic consequences of China’s economic growth rate

The international implications of any such growth outcomes were succinctly summarised by Martin Wolf, chief economics commentator of the Financial Times. If China’s economy continues to grow substantially faster than Western ones, and it achieves the status of a “medium-developed country by 2035”, then, in addition to achieving high domestic living standards, China’s will become by far the world’s largest economy. As Wolf put it: “The implications can be seen in quite a simple way. According to the IMF, China’s gross domestic product per head (measured at purchasing power) was 28 per cent of U.S. levels in 2022. This is almost exactly half of Poland’s relative GDP per head… Now, suppose its [China’s] relative GDP per head doubled, to match Poland’s. Then its GDP would be more than double that of the U.S. and bigger than that of the U.S. and EU together.” By 2035 such a process would not be completed on the growth rates already given, and measuring by Wolf’s chosen measure of purchasing power parities (PPPs) China’s economy by 2035 would be 60% bigger than that of the U.S. But even that would make China by far the world’s largest economy.

Wolf equally accurately notes that the only way that such an outcome would be prevented from occurring is if China’s economy slows down to the growth rate of a Western economy such as the U.S. Clearly, if China’s economic growth slows to that of a Western economy, then, naturally, China will never catch up with the West—it will necessarily simply stay the same distance behind. Therefore. as Wolf accurately puts it the outcomes are:

What is the economic future of China? Will it become a high-income economy and so, inevitably, the largest in the world for an extended period, or will it be stuck in the ‘middle income’ trap, with growth comparable to that of the U.S.?

The progress in achieving China’s strategic economic goalsTurning to the precise figure required to achieve China’s 2035 target, China’s goal of doubling GDP required average annual growth of at least 4.7% a year between 2020 and 2035. So far China, as Figure 1 shows, is ahead of this goal—annual average growth in 2020-2022 was 5.7%, meaning that from 2023-2035 annual average 4.6% growth is now required.

China’ 5.2% GDP increase in 2023 therefore once again exceeded the required 4.6% growth rate to achieve its 2035 goal—as shown in Figure 1. From 2020 to 2023 the required total increase in China’s GDP to hit its 2035 target was 14.9%, whereas in fact its growth was 17.5%. This is in line with the 45-year record since 1978’s Reform and Opening Up, during which entire period the medium/long term targets set by China have always been exceeded.

Therefore. to summarise, there is no sign whatever in 2023, or indeed in the period since 2020, that China will fail to meet its target of doubling GDP between 2020 and 2035—China is ahead of this target. Such a 4.6% growth rate would easily ensure China becomes a high-income economy by World Bank criteria well before 2035—the present criteria for this being per capita income of $13,846.

It should be noted, as discussed in in detail below, that a clear international conclusion flows from this necessary 4.6% annual average growth rate for China to achieve its strategic goals. It means that China must continue to grow much faster than the Western economies throughout this period to 2035—that is in line with China’s current trend. However, if China were to slow down to the growth rate of a Western economy, then it will fail to achieve its strategic goals to 2035, may not succeed in becoming a high income economy, and will necessarily remain the same distance behind the West as now. The implications of this will be considered below.

Systematic comparisons not “cherry picking”Having considered China’s performance in 2023 terms of achieving its own domestic strategic goals we will now turn to actual results and a comparison of China with other international economies. This immediately shows the factual absurdity, the pure “fake news” of claims such as that the U.S. has “the world’s best recovery“ and “the United States… is outperforming all of its major trading partners.” On the contrary China has continued to far outgrow the U.S. economy not only in 2023 but in the entire last period. China’s outperformance of the other major Western economies, the G7, is even greater that of the U.S.

Entirely misleading claims regarding such international comparisons, used for propaganda as opposed to serious analysis, are sometimes made because data is taken from extremely short periods of time which are taken out of context—unrepresentative statistical “cherry picking” or, as Lenin put it, a statistical “dirty business”. Such a method is always erroneous, but it is particularly so during periods which were affected by the impact of the Covid pandemic as these caused extremely violent short-term economic fluctuations related to lock downs and similar measures. China’s assertion of superior growth is based on its overall performance, not an absurd claim that it outperforms every other economy, on every single measure, in every single period! Therefore, in making international comparisons, the most suitable period to take is that for since the beginning of the pandemic up to the latest available GDP data. As comparison of China with the U.S. is the most commonly made one, and particularly concentrated on by the U.S. media campaign, this will be considered first.

China’s and the U.S.’s growth in 2023

It was already noted that in 2023 China’s GDP grew by 5.2% and the U.S. by 2.5%—China’s economy growing more than twice as fast as the U.S. But it should also be observed that 2023 was an above trend growth year for the U.S.—U.S. annual average growth over a 12-year period is only 2.3% and over a 20-year period it is only 2.1%. Therefore, although in 2023 China’s economy grew more than twice as fast as the U.S., that figure is actually somewhat flattering for the U.S. Figure 2shows that in the overall period since the beginning of the pandemic China’s economy has grown by 20.1% and the U.S. by 8.1%—that is China’s total GDP growth since the beginning of the pandemic was two and half times greater than the U.S. China’s annual average growth rate was 4.7% compared to the US’s 2.0%.
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Economic performance of China and the three major global economic centres

Turning to wider international comparisons than the U.S. such data immediately shows the extremely negative situation in most “Global North” economies and China’s great outperformance of them. To start by analysing this in the broadest terms, Figure 3 shows the developments in the world’s three largest economic centres—China, the U.S., and the Eurozone. These three together account for 57% of world GDP at current exchange rates and 46% in purchasing power parities (PPPs). No other economic centre comes close to matching their weight in the world economy.

Regarding the relative performance of these three major economic centres, at the time of writing data has not been published for the Euro Area for the whole year of 2023 —which would be the ideal comparison. However, it has been published for the the Euro area for the four quarters of 2023 individually and trends can be calculated on that basis. These show that In the four years to the 4th quarter of 2023, covering the period since the beginning of the pandemic, China’s economy has grown by 20.1%, the U.S. by 8.2%, and the Eurozone by 3.0%. China’s economy therefore grew by two and a half times as fast as the U.S. while the situation of the Eurozone could accurately be described as extremely negative with annual average GDP growth in the last four years of only 0.7%.

Such data again makes it immediately obvious that claims in the Western media that China faces economic crisis, and the Western economies are doing well is entirely absurd—pure fantasy propaganda disconnected from reality.
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Relative performance of China and the G7

Turning to analysing individual countries, then comparing China to all G7 states, i.e. the major advanced economies, shows the situation equally clearly—see Figure 4. Data for China and all G7 economies has now been published for the whole of 2023. The huge outperformance by China of all the major advanced economies is again evident.

Over the four years since the beginning of the pandemic China’s economy grew by 20.1%, the U.S. by 8.1%, Canada by 5.4%, Italy by 3.1%, the UK by 1.8%, France by 1.7%, Japan by 1.1% and Germany by 0.7%.

In the same period China’s economy therefore grew two and a half times as fast as the U.S., almost four times as fast as Canada, almost seven times as fast as Italy, 11 times as fast as the UK, 12 times as fast as France, 18 times as fast as Japan and almost 29 times as fast as Germany.

In terms of annual average GDP growth during this period China’s was 4.7%, the U.S. 2.0%, Canada 1.3%, Italy 0.8%, the UK 0.4%, France 0.4%, Japan 0.3% and Germany 0.2%.

It may therefore be seen that China’s economy far outperformed the U.S., while the performance of all other major G7 economies may be quite reasonably described as extremely negative—all having annual average economic growth rates of around or even under 1%.
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Comparison of China to developing economies

A comparison using the IMF’s January 2024 projections can also be made to the major developing economies—the BRICS. Figure 5 shows this, using the factual result for China and the IMF projections for the other countries. Over the period since the start of the pandemic, from 2019-2023, China’s GDP grew by 20.1%, India by 17.5%, Brazil by 7.7%, Russia by 3.7% and South Africa by 0.9%.

This data confirms that the major Global South economies are growing faster than most of the major Global North economies, which is part of the rise of the Global South and draws attention to the good performance of India. But China grew more than two and half times more than all the BRICS economies except India—China’s growth was 15% greater than India’s. It should be noted that India is at a far lower stage of development than the other BRICS economies—all the others fall in the World Bank classification of upper middle-income economies whereas India falls into the lower middle income group.
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Comparison of China’s growth to Western economies

Finally, this outperformance by China casts light on what is necessary to achieve its own 2035 strategic targets. China’s 4.6% growth rate necessary to meet these goals means that it must continue to maintain a growth rate far higher than Western economies—Figure 6 shows this in overall terms in addition to individual comparisons given to major economies above. Whereas China must achieve an annual average 4.6% growth rate the median growth rate of high income “Western” economies is only 1.9%, the U.S. is 2.3%, and the median for developing economies is 3.0%.That is, to achieve its 2035 goals China must grow twice as fast as the long term trend of the U.S., almost two and a half times as fast as the median for high income economies, and more than 50% faster than the median for developing economies. As already seen, China is more than achieving this.

But such facts immediately show why it is an extremely misleading when proposals are made that China should move towards the macro-economic structure of a Western economy. If China adopts the structure of a Western economy then, of course, China will slow down to the same growth rate as Western economies—and therefore fail to achieve its 2035 economic goals. China will be precisely stuck in the negative outcome of the situation accurately diagnosed by Martin Wolf.

What is the economic future of China? Will it become a high-income economy and so, inevitably, the largest in the world for an extended period, or will it be stuck in the ‘middle income’ trap, with growth comparable to that of the U.S.?
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​Conclusion

In conclusion, it addition to objectively analysing 2023’s economic results, it is also necessary in the light of this factual situation to make a remark regarding Western, in particular U.S. “journalism”.

None of the data given above is secret, all is available from public readily accessible sources. In many cases it does not even require any calculations and simply published data can be used. But the U.S. media and journalists report information that is systematically misleading and in many cases simply untrue. While it lagged China in creating economic growth the U.S. was certainly the world leader in creating “fake economic news”! What was the reason, what attitude should be taken to it?

First, to avoid accusations of distortion, it should be stated that there were a small handful of Western journalists who refused to go along with this type of distortion and fake news. For example Chris Giles, the Financial Times economics commentator, in December, sharply attacked “an absurd way to compare economies… among people who should know better.” Giles did not do this because of support for China but because, quite rightly, he warned that spreading false or distorted information led to serious errors by countries doing so: “Coming from the UK, which lost its top economic dog status in the late 19th century but still has some delusions of grandeur, I can understand American denialism… But ultimately, bad comparisons foster bad decisions.” But the overwhelming majority of U.S. and Western journalists continued to spread fake news. Why?

First, the fact that identical distortions and false information appeared absolutely simultaneously across a very wide range of media makes it clear that undoubtedly U.S. intelligence services were involved in creating it—i.e. part of the misrepresentation and distortions were entirely deliberate and conscious, aimed at disguising the real situation.

Second, another part was merely sloppy journalism—that is journalists who could not be bothered to check facts.
Third, supporting both of these factors was “white Western arrogance”—an arrogant assumption, rooted in centuries of European and European descended countries dominating the world, that the West must be right. Therefore, such arrogance made it impossible to acknowledge or report the clear facts that China’s economy is far outperforming the West.

But whether it was conscious distortion, sloppy journalism, or conscious or unconscious arrogance, in all these cases no respect should be given to the Western “quality” media. It is not trying to find out the truth, which is the job of journalism, it is simply spreading false propaganda.

It remains a truth that if a theory and the real world don’t coincide there are only two courses that can be taken. The first, that of a sane person, is to abandon the theory. The second, that of a dangerous one, is to abandon the real world—precisely the danger that Chris Giles pointed to. What has been appearing in the Western media about international economic comparisons regarding China is precisely abandonment of the real world in favour of systematic fake news.

This is a shortened version of an article that originally appeared in Chinese at Guancha.cn.

About 

John Ross is a senior fellow at Chongyang Institute for Financial Studies, Renmin University of China. He was formerly director of economic policy for the mayor of London.

Republished from Monthly Review

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10/12/2023

A decade of BRI development transforms China's Xinjiang region into a core area of the Silk Road Economic Belt By: Li Xuanmin in Urumqi and Horgos

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​A decade of BRI development transforms the region into a core area of the Silk Road Economic Belt
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On Sunday morning, workers were harvesting grapes on farmland in Yining county in Kazak Autonomous Prefecture of Ili, Northwest China's Xinjiang Uygur Autonomous Region. The freshly-picked fruit was then uploaded onto a truck, headed to Kazakhstan via highway, and within six hours, it would be delivered to the Kazakhstani market and sold to the local consumers.

"It used to take two to three days to ship goods from Xinjiang to Kazakhstan, but the time has been reduced to only half a day since the development of the Belt and Road Initiative (BRI), under which connectivity has been facilitated and the efficiency of customs clearance has been largely improved," Yu Chengzhong, chairman of Horgos Jinyi International Trade Co, told the Global Times.

Yu's company is growing quickly thanks to fruit exports from Xinjiang, including apples, nectarines, grapes, peppers, tomatoes, prunes and cucumbers to markets in Central Asia, Russia, and Southeast Asian countries such as Thailand and Vietnam. It is expected that the company's export value to Central Asia could climb up to $1.2 billion this year, almost doubling from $683 million recorded last year.

As business expands, the company is now constructing a 500,000-square-meter overseas warehouse in Alma-Ata in southern Kazakhstan, and it is scheduled to be put into use in October 2024. "It will be built into a distribution center covering other Central Asian countries and Russia. We will also set up an exhibition area for China-produced vehicles, as those autos have been gaining popularity in those markets," Yu added

Yu's company is one among the thousands of firms in Xinjiang whose businesses have been taking off under the BRI. 

As the China-proposed BRI being materialized over the past decade, Xinjiang - which sits at China's westernmost frontier bordering  eight countries including Mongolia, Russia, Kazakhstan, Kyrgyzstan, Tajikistan, Afghanistan, Pakistan and India - has been transformed from a relatively closed inland region to a frontier of opening-up. ​
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A view of China- Kazakhstan International Cooperation Center in Horgos, Northwest China's Xinjiang Uygur Autonomous Region on September 16. Photo: Li Xuanmin/GT
As an important node along the BRI, the region, leveraging its strategic location, has built up an overarching rail, road and flight transportation network that not only fosters closer trade and economic ties with Central Asia and Europe, but also shapes itself into a bridgehead for westward opening-up, company representatives and local officials noted. 

"What we felt most during the past 10 years is that Xinjiang is no longer a remote region, but it is now becoming a core area of the Silk Road Economic Belt. We're a pivotal international logistic hub placed at the Asia-Europe 'golden passage.' And the region is set to be designated with more important missions in the country's further opening-up," Zhao Yi, general manager assistant at International Land Port in Urumqi, told the Global Times.

Flourishing foreign trade 

In the first eight months of 2023, Xinjiang's foreign trade surged by 51.2 percent year on year, reaching 219.19 billion yuan (around $30 billion).

Xinjiang has engaged in foreign trade with 170 countries and regions this year. Its foreign trade with five Central Asian countries grew by 59.1 percent year-on-year to 176.64 billion yuan, accounting for 80.6 percent of the regional total, customs data showed. 

"The main cargo shipped from Xinjiang to the international market are typically ketchup, agricultural products, textiles, PVC, chemical raw materials, equipment and machineries," Zhao explained, as he guided the loading of containers into a China-Europe freight train set to depart for Kazakhstan on Sunday afternoon. 

As of early September, the inbound and outbound China-Europe freight trains passing through Xinjiang have totaled 10,017 this year, up 10.1 percent year-on-year, according to China Railway Urumqi Group Co Ltd.

In the first seven months of 2023, the International Land Port in Urumqi opened 772 China-Europe freight trains, up 9.35 percent year-on-year. The rail routes connect with 26 cities in 19 countries. The port also serves as an important transit point for goods across China and from Southeast Asia to be transported to Europe.

Ding Zhijun, an official from the Urumqi Economic and Technological Development Zone, told the Global Times that since the beginning of this year, goods from Laos, such as sugar and rubber, have been transferred at the port via China-Laos Railway and other inland railway routes, and then are assembled and delivered to European markets. 

"The BRI has driven up Xinjiang's foreign trade, which is a boon for local industries. It is also conducive to Xinjiang's economic development and boosting employment opportunities," Ding said. He added that looking to the future, the port authorities plan to set up a textile trading center within the port, to facilitate the exports and trade of clothes and other textile products. 

Opening to the West

The hustle and bustle of international cooperation in Xinjiang is also seen throughout the China-Kazakhstan International Cooperation Center in Horgos, which is home to China's first cross-border free trade zone. When Global Times reporters visited the center at a weekend in mid-September, streams of tourists were standing at the border gate and taking photos, and stores were crowded with merchants and buyers.

"In the initial stage when we set up the shopping mall in 2015, most merchants were from Kazakhstan and China. But now, with the steady progress of BRI, the center has become a hot destination for foreign investment, and there are more vendors from other Central Asia countries as well as Russia and South Korea," Ji Gang, general manager of Jindiao Central Square, a shopping mall at the cooperation center, told the Global Times. 

According to Ji, the center has just held a commercial fair for Central Asian business leaders in August, during which a number of deals were signed, including equipment purchase agreements. Some Chinese and Kazakhstani companies also reached initial agreement to open factories in Kazakhstan.

"With unique geographic advantage, Xinjiang has become an important gateway for China to open up to the West. It is worth noting that the radiation effect of the region is not confined to China, but also to Central Asia and Europe, which would in turn provide Xinjiang with more development opportunities," Ji added. 

Zhao also said that the International Land Port is planning to open more China-Europe freight train routes that directly connect the region to Europe. 

"In particular, we aim to set up some premium routes to transport electronic components and local specialty goods via the China-Europe railway express. This year, we are also actively engaging with Kazakhstan to establish business partnerships and enhance customs clearance efficiency," Zhao noted.

Author

​Li Xuanmin in Urumqi and Horgos


This article was produced by Global Times. 

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7/17/2023

Why are there no slums in China? By: Dongsheng

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​With over 20 million inhabitants each, Shanghai and Beijing are among the “hypercities” of the Global South, including Delhi, São Paulo, Dhaka, Cairo, and Mexico City, far surpassing the “megacities” of the Global North like London, Paris, or New York1. Walking the streets in China’s cities, you will however, quickly notice one marked difference – the absence of large slums or pervasive homelessness that is so common to most of the rest of the world. 

Slums were not uncommon in Chinese cities a few decades ago, from the precarious working class districts of 1930s Shanghai to the shanty towns of British-occupied Hong Kong in the 1950s onwards. How did China manage to develop in a way that decreased mass housing precarity?  What are the structural reasons behind it?

This issue of Dongsheng Explains looks into how the Chinese government deals with homelessness, how this issue relates to socialist construction, and how China confronts the challenges posed by rapid economic development, urbanization, and the migration of recent decades.

Why did mass urbanization not create large slums in China?

When reform and opening up began in the late 1970s, 83 percent of China’s population lived in the countryside. By 2021, the proportion of the rural population had fallen to 36 percent. During this period of mass urbanization, over 600 million people migrated from rural areas to cities.
​
Today, there are 296 million internal “migrant workers” (农民工, nóngmín gōng), comprising over 70 percent of the country’s total workforce2. Migrant workers became the economic engine of China’s rapid growth, which created the world’s largest middle class of 400 million people. 
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This historic migration came with many challenges, including the emergence of “urban villages” that had poor living conditions and inadequate infrastructure. Although basic amenities – such as running water, electricity, gas, and communications – were provided, sanitation, public services, fire safety, and other such amenities resembled that of rural villages. Due to lower rents and the lack of other affordable housing, urban villages are largely inhabited by migrant workers. 

With the acceleration of urbanization in the 2000s, the Chinese government began to promote large-scale transformation of the old areas of the cities, focusing on renovation of historically deteriorated neighborhoods and the removal of dangerous housing. Between 2008 and 2012, 12.6 million households in urban villages were rebuilt nationwide3. At the same time, efforts were made to construct public rental or low-rent housing. For instance, in Shanghai today, families of three or more people with a monthly income of less than 4,200 yuan per person can apply for low-rent housing, with the monthly rent being just a few hundred yuan (or five percent of monthly household income). In 2022, the central government announced the construction of 6.5 million units of low-cost rental housing in 40 cities, representing 26 percent of the total new housing supply in the 14th Five-Year Plan (2021-2025)4.
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Indeed the explosion of rural-to-urban migration in recent decades is not a phenomenon unique to China. While understanding that there are different definitions of “slums” used by countries and international organizations, they all point to the same tendency:  since the 1970s, slum growth outpaced urbanization rates across the Global South. China’s efforts to upgrade existing precarious housing or build new affordable housing does not, however, explain why China did not develop slums like in so many other countries. Urbanization in China, therefore, must be understood within the context of socialist construction.

What is the “hukou” system and what does it have to do with socialism?

One unique characteristic of China’s urbanization process is that, although policies encouraged migration to cities for industrial and service jobs, rural residents never lost their access to land in the countryside. In the 1950s, the Communist Party of China (CPC) led a nationwide land reform process, abolishing private land ownership and transforming it into collective ownership. During the economic reform period, beginning in 1978, a “Household Responsibility System” (家庭联产承包责任制 jiātíng lián chǎn chéngbāo zérèn zhì) was created, which reallocated rural agricultural land into the hands of individual households. Though agricultural production was deeply impacted, collective land ownership remained and land was never privatized. 
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Today, China has one of the highest homeownership rates in the world, surpassing 90 percent, and this includes the millions of migrant workers who rent homes in other cities. This means that when encountering economic troubles, such as unemployment, urban migrant workers can return to their hometowns, where they own a home, can engage in agricultural production, and search for work locally. This structural buffer plays a critical role in absorbing the impacts of major economic and social crises. For example, during the 2008 global financial crisis, China’s export-oriented economy, especially of manufactured goods, was severely hit, causing about 30 million migrant workers to lose their jobs. Similarly, during the Covid-19 pandemic, when service and manufacturing jobs were seriously impacted, many migrant workers returned to their homes and land in the countryside.

Beyond land reform, a system was created to manage the mass migration of people from the countryside to the cities, to ensure that the movement of people aligned with the national planning needs of such a populous country. Though China has had some form of migration restriction for over 2,000 years, in the late 1950s, the country established a new “household registration system” (户口 or hùkǒu) to regulate rural-to-urban migration. Every Chinese person has an assigned urban or rural hukou status that grants them access to social welfare benefits (subsidized public housing, education, health care, pension,  and unemployment insurance, etc.) in their hometown, but which are restricted in the cities they move to for work. While reformation of the hukou system is ongoing, the lack of urban hukou status forces many migrant parents to spend long periods away from their families and they must leave their children in their grandparents’ care in their hometowns, referred to as “left-behind children” (留守儿童 liúshǒu értóng). Though the number has been decreasing over the years, there are still an estimated seven million children in this situation. Today, 65.22 percent of China’s population lives in cities, but only 45.4 percent have urban hukou. Although this system deterred the creation of large urban slums, it also reinforced serious inequities of social welfare between urban and rural areas, and between residents within a city based on their hukou status.
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How does the Chinese government deal with homelessness?

In the early 2000s, the issues of residential status, rights of migrant workers, and treatment of urban homeless people became a national matter. In 2003, the State Council – the highest executive organ of state power – issued the “Measures for the Rescue and Management of Itinerant and Homeless in Urban Areas”5. The new regulation created urban relief stations providing food rations and temporary shelters, abolished the mandatory detention system of people without hukou status or housing, and placed the responsibility on the local authorities for finding housing for homeless people in their hometowns. 

Under these measures, cities like Shanghai have set up relief stations for homeless people. When public security – the local police – and urban management officials encounter homeless people, they must assist them in accessing nearby relief stations. All costs are covered by the city’s fiscal budget. For example, the relief management station in Putuo District (with the fourth lowest per capita GDP of Shanghai’s 16 districts and a resident population of 1.24 million), provided shelter and relief to an average of 24.3 homeless people a month from June 2022 to April 2023, which could include repeated cases6.
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Relief stations provide homeless people with food and basic accommodations, help those who are seriously ill access healthcare, assist them to return to the locations of their household registration by contacting their relatives or the local government, and arrange free transportation home when needed.
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Upon returning home, the local county-level government is responsible to help the homeless people, including contacting relatives for care and finding local employment. For a very small number of people who are elderly, have disabilities, or do not have relatives nor the ability to work, the local township people’s government, or the Party-run street office, will provide national support for them in accordance with the “method of providing for extremely impoverished persons”, which is stipulated in the 2014 “Interim Measures for Social Assistance”. The content of the support includes providing basic living conditions, giving care to impoverished individuals who cannot take care of themselves, providing treatment for diseases, and handling funeral affairs, etc.
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This series of relief management measures ensure that administrative law enforcement personnel in the city do not simply expel homeless people from the city, but must guarantee that they receive proper assistance, in terms of housing, work, and support systems.

What are the current challenges of urbanization, migration, and inequality?

While creating relief centers is an important advancement, it is clear that shelters are not a structural solution and they alone cannot meet the needs of a metropolis like Shanghai of 25 million people, let alone the country’s 921 million urban residents. The government has been implementing many structural reforms to address inequality, and to make the cities and the countryside more liveable.

In his report to the 20th National Congress of the CPC, President Xi Jinping said: “We have identified the principal contradiction facing Chinese society as that between unbalanced and inadequate development and the people’s ever-growing needs for a better life, and we have made it clear that closing this gap should be the focus of all our initiatives.”7 The unbalanced and inadequate development points to the gap between the countryside and cities, between underdeveloped and industrialized regions, and between the rich and poor. 

On a broader scale, the anti-poverty campaigns – highlighted by the eradication of extreme poverty in 2020 – and the rural revitalization strategy have helped alleviate the pressure of migrant workers moving to the cities. The government has invested substantial funds and resources, using diversified ways to alleviate poverty beyond income-transfer schemes, including developing rural industry, education, health care, and infrastructure8. These measures fundamentally improved the living and employment environment in rural areas and created more opportunities so that people have the option to stay and work in the countryside. For example, every year, more migrants are returning from cities back to their hometowns, which increased from 2.4 million (2015) to 8.5 million people (2019). 

Over the last decade, China has implemented reforms to balance the easing of hukou residency requirements and to improve the social welfare of migrant workers, while ensuring that urbanization and population distribution responds to the country’s needs. Since 2010, major cities have gradually relaxed the household registration restrictions for school admission, allowing children of migrant workers to attend public schools like children with local hukou. Furthermore, according to the 2019 Urbanization Plan, cities with populations below three million people are required to remove all hukou restrictions, while bigger cities (under five million) can begin to relax restrictions. The 14th Five-Year Plan (2021-2025) and the country’s economic strategy until 2035 focus on redistributing income through tax reform, reducing the gap between the rich and poor, and removing the barriers that prevent millions of migrant workers from enjoying the full benefits of urban life. In 2021, the government invested US$5.3 billion to relax the hukou residency rules, and to also boost urban migrants’ spending power as part of the country’s “dual circulation” policy9. 
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These efforts to tackle the “three mountains” of the high cost of housing, education, and health care faced by all Chinese people, including migrants, is at the center of the government’s vision and policy reforms towards “common prosperity” for all its citizens and the building of a modern socialist society.



​
  1. A metropolitan area that has a population between 20 million and 40 million is called a “hypercity,” and between 10 million and 20 million is a “megacity.”
  2. Migrant workers are workers whose household registration is still in rural areas and who are engaged in non-agricultural industries or leave their hometowns for work in another part of the country for at least six months of the year.
  3. General Office of the State Council, ‘Opinions of the State Council on Accelerating the Reconstruction of Shantytowns’, July 12, 2013.
  4. China State Council Information Office, ‘40 cities to add 6.5M units of gov’t-subsidized rental housing’, January 11, 2022.
  5. China Executive Meeting of the State Council’, ‘Measures for the Rescue and Management of Itinerant and Homeless in Urban Areas’, June 18, 2003.
  6. Shanghai Putuo District People’s Government, ‘Rescue of Itinerant and Homeless people’, June 2022 to April 2023.
  7. Full text of the report
  8. See the study, “Serve the People: The Eradication of Extreme Poverty in China”
  9. Andrew Korybko, ‘China’s 14th Five-Year Plan prioritizes dual circulation, innovation’, October 30, 2020.


Author

​Dongsheng


This article was produced by DongSheng.

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7/12/2023

Can China and the United States Establish Mutual Respect to Lessen Tensions? By: Vijay Prashad

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​On June 3, 2023, naval vessels from the United States and Canada conducted a joint military exercise in the South China Sea. A Chinese warship (LY 132) overtook the U.S. guided-missile destroyer (USS Chung-Hoon) and speeded across its path. The U.S. Indo-Pacific Command released a statement saying that the Chinese ship “executed maneuvers in an unsafe manner.” The spokesperson from China’s Ministry of Foreign Affairs, Wang Wenbin, responded that the United States “made provocations first and China responded,” and that the “actions taken by the Chinese military are completely justified, lawful, safe, and professional.” This incident is one of many in these waters, where the United States conducts what it calls Freedom of Navigation (FON) exercises. These FON actions are given legitimacy by Article 87(1)(a) of the 1982 United Nations Convention on the Laws of the Sea. China is a signatory to the Convention, but the United States has refused to ratify it. U.S. warships use the FON argument without legal rights or any United Nations Security Council authorization. The U.S. Freedom of Navigation Program was set up in 1979, before the Convention and separate from it.
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Hours after this encounter in the South China Sea, U.S. Defense Secretary Lloyd Austin spoke at the Shangri-La Dialogue in Singapore. The Shangri-La Dialogue, which has taken place annually at the Shangri-La Hotel since 2002, brings together military chiefs from around Asia with guests from countries such as the United States. At a press gaggle, Austin was asked about the recent incident. He called upon the Chinese government “to reign in that kind of conduct because I think accidents can happen that could cause things to spiral out of control.” That the incident took place because a U.S. and Canadian military exercise took place adjacent to Chinese territorial waters did not evoke any comment from Austin. He emphasized the role of the United States to ensure that any country can “sail the seas and fly the skies in international space.”

Austin’s pretense of innocence was challenged by his Chinese counterpart, Defense Minister Li Shangfu. “Why did all these incidents happen in areas near China,” Li asked, “not in areas near other countries?” “The best way to prevent this from happening is that military vessels and aircraft not come close to our waters and airspace… Watch out for your own territorial waters and airspace, then there will not be any problems.” Li contested the idea that the U.S. navy and air force are merely conducting FON exercises. “They are not here for innocent passage,” he said. “They are here for provocation.”

​Tighten the Net

​When Austin was not talking to the press, he was busy in Singapore strengthening U.S. military alliances whose purpose is to tighten the net around China. He held two important meetings, the first a U.S.-Japan-Australia trilateral meeting and the second a meeting that included their counterpart from the Philippines. After the trilateral meeting, the ministers released a sharp statement that used words (“destabilizing” and “coercive”) that raised the temperature against China. Bringing in the Philippines to this dialogue, the U.S. egged on new military cooperation among Canberra, Manila, and Tokyo. This builds on the Japan- Philippines military agreement signed in Tokyo in February 2023, which has Japan

pledging funds to the Philippines and the latter allowing the Japanese military to conduct drills in its islands and waters. It also draws on the Australia-Japan military alliance signed in October 2022, which—while it does not mention China—is focused on the “free and open Indo-Pacific,” a U.S. military phrase that is often used in the context of the FON exercises in and near Chinese waters.
​
Over the course of the past two decades, the United States has built a series of military alliances against China. The earliest of these alliances is the Quad, set up in 2008 and then revived after a renewed interest from India, in November 2017. The four powers in the Quad are Australia, India, Japan, and the United States. In 2018, the United States military renamed its Pacific Command (set up in 1947) to Indo-Pacific Command and developed an Indo-Pacific Strategy, whose main focus was on China. One of the reasons to rename the process was to draw India into the structure being built by the United States, emphasizing the India-China tensions around the Line of Actual Control. The document shows how the U.S. has attempted to inflame all conflicts in the region—some small, others large—and put itself forward as the defender of all Asian powers against the “bullying of neighbors.” Finding solutions to these disagreements is not on the agenda. The emphasis of the Indo-Pacific Strategy is for the U.S. to force China to subordinate itself to a new global alliance against it.

​Mutual Respect

​During the press gaggle in Singapore, Austin suggested that the Chinese government “should be interested in freedom of navigation as well because without that, I mean, it would affect them.” China is a major commercial power, he said, and “if there are no laws, if there are no rules, things will break down for them very quickly as well.”
​
China’s Defense Minister Li was very clear that his government was open to a dialogue with the United States, and he worried as well about the “breakdown” of communications between the major powers. However, Li put forward an important precondition for the dialogue. “Mutual respect,” he said, “should be the foundation of our communications.” Up to now, there is little evidence—even less in Singapore despite Austin’s jovial attitude—of respect from the United States for the sovereignty of China. The language from Washington gets more and more acrid, even when it pretends to be sweet.

Author

​Vijay Prashad is an Indian historian, editor, and journalist. He is a writing fellow and chief correspondent at Globetrotter. He is an editor of LeftWord Books and the director of Tricontinental: Institute for Social Research. He is a senior non-resident fellow at Chongyang Institute for Financial Studies, Renmin University of China. He has written more than 20 books, including The Darker Nations and The Poorer Nations. His latest books are Struggle Makes Us Human: Learning from Movements for Socialism and (with Noam Chomsky) The Withdrawal: Iraq, Libya, Afghanistan, and the Fragility of U.S. Power.


This article was produced by Globetrotter.

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7/9/2023

Addressing allegations of “Chinese spy base” in Cuba.By: Manolo De Los Santos & Kate Gonzales

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On June 8, the U.S. media added to its long storybook of tales to scare people away from normal relations with Cuba. The Wall Street Journal published an article on that day claiming that China has plans to set up a “spy base” in Cuba, to “eavesdrop” on the United States and “identify potential strike targets.” WSJ has already published two more pieces since rapidly ramping up its narrative against the Cuban state and fermenting more paranoia as the news spreads across mainstream news outlets in the United States.

Meanwhile, Cuban officials held a press conference on June 8 to completely deny the allegations. Cuba’s Vice Foreign Minister Carlos de Cossío stated that “All these are fallacies promoted with the deceitful intention of justifying the unprecedented tightening of the blockade, destabilization, and aggression against Cuba and of deceiving public opinion in the United States and the world.” Even John Kirby, National Security Council spokesman who was the former press secretary for the Pentagon, has denied the WSJ report, calling it “inaccurate.”

This is just one new addition to the long legacy of lies that the United States has been spinning in an attempt to further alienate the Cuban people. One just has to remember the “Havana syndrome” that mysteriously affected diplomats in Cuba; it was first blamed on foreign powers as an attack but was later revealed to have no basis. Or maybe the claims about 20,000 Cuban soldiers supposedly based in Venezuela to maintain the government there, when in reality, the vast majority of Cubans present in Venezuela were medical workers. Or perhaps the idea that Cuban doctors sent across the world are enslaved, when it is simply their understanding that their duty to humanity is to provide health care to those who need it. All of these lies have been told just in the past few years alone.

These falsified stories all swirl into fomenting the atmosphere of paranoia and suspicion that prevents normal U.S.-Cuba relations. In the wake of the Havana syndrome myth, Trump was able to interrupt the path Obama set toward normalization, setting 243 additional and comprehensive sanctions, and further preventing the island from meeting its basic needs. The United States continues to live out its Cold War fantasies through these lies, at the cost of the Cuban people’s lives and well-being.

And yet, it maintains its hypocrisy. Cossío was careful to point out that Cuba would never allow a foreign military base on their island, as it is a signatory of the Declaration of Latin America and the Caribbean as a Zone of Peace. Cuba is also currently sponsoring and hosting peace talks between Colombia and the National Liberation Army (ELN). As of today, they have agreed to a cease-fire, ending decades of violence in the country. Cuba already suffers from the illegal U.S. occupation of Guantanamo, to further rub salt in the wound. The United States has its infamous military base there, which is known for the inhumane treatment and torture it deals out to its prisoners. While it accuses China of military expansion, the United States has hundreds of military bases all over the globe.
​

Cuba has demonstrated that it desires nothing but peace in the region, and normal relations with its neighbor, the United States. But the United States refuses to accept this proposal. Instead, it maintains the most comprehensive sanctions in history against the small island. Instead, it falsely places Cuba on the state sponsors of terrorism list, even though it is in fact a sponsor of peace. Instead, the U.S. government and its media apparatuses choose to fabricate myths and legends, painting Cuba as the evil monster under the bed. It chooses to scare the U.S. people away from the possibility that normal relations and ending the blockade against Cuba could be good for people from both countries.

Author

Manolo De Los Santos is the co-executive director of the People’s Forum and is a researcher at Tricontinental: Institute for Social Research. He co-edited, most recently, Viviremos: Venezuela vs. Hybrid War (LeftWord Books/1804 Books, 2020) and Comrade of the Revolution: Selected Speeches of Fidel Castro (LeftWord Books/1804 Books, 2021). He is a co-coordinator of the People’s Summit for Democracy.

​Kate Gonzales is the editorial coordinator at 1804 Books. Born and raised in New York City, she has worked in development and education for arts and political organizations, and organized with grassroots movements in Hungary and New Jersey. Kate studied anthropology at Bard College, where she wrote her thesis on Filipino migrant nationalism.


This article was produced by Globetrotter.

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7/9/2023

Book Review: Understanding China By: Morning Star

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Recognising how important it is for Today’s Left to understand China, BEN CHACKO recommends a highly readable and well-researched book of essays
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CHINA looms large in today’s world. Its economy is predicted to exceed the US’s in size within the decade; by purchasing power parity, it is already larger.

It is racing ahead too in diplomacy and trade: it has now replaced the US as the country with the most diplomatic missions overseas, and is the biggest trading partner of a majority of countries globally.

This very success — China’s status as the United States’ only acknowledged “peer competitor”— could be the reason China is now routinely depicted as a menace.

Britain’s BBC dutifully takes up scares over weather balloons and breathless reports on Chinese aircraft or ships’ “aggressive” conduct in encounters with US counterparts — which for some reason always take place just off the Chinese, not the American coast.

Projects like the Belt & Road Initiative, which overtook the World Bank as the biggest development finance lender in 2019, are seen as evidence of a sinister new imperialism.

Understanding China could hardly be more important for today’s left.

The “China threat” is a key justification for a major plank of British state policy: huge increases in arms spending and the first “east of Suez” military deployments in many decades.

This could mean World War III: a serving US general predicts that happening the year after next.

Armageddon could result from current China policy in other ways: sanctions and economic “decoupling” are cutting us off from the world leader in renewable technology and undermining scientific co-operation on global warming or pandemics.

Socialists need to know how we respond to these challenges. Carlos Martinez’s new book The East is Still Red is an excellent guide.

Whether China is socialist, as its ruling Communist Party argues, is a divisive topic but with an eye on history Martinez draws out the consistencies in the country’s course since 1949.

Chapter 1, No Great Wall, looks at how the “reform and opening up” period begun by Deng Xiaoping from 1978 built on achievements of the Mao years, without underrating the huge policy differences that did occur, or whitewashing either era. Later, in Will China Suffer the Same Fate as the Soviet Union, Martinez contrasts the two and points both to underlying strengths in China’s model and the lessons its party leadership has learned from the Soviet collapse.

Many are familiar with impressive headline figures such as China lifting 800 million people out of poverty — but Western accounts tend to imply this is the undirected result of introducing “the market,” though capitalist market economies such as India or Brazil cannot point to similar achievements. Martinez delves into the details and looks at the targets, the plans, the actual measures taken to deliver the greatest improvement in human welfare in recorded history.

For a Western left audience, key chapters are those on how China is making progress towards “ecological civilisation” — and why a “plague on both your houses” position dubbed Neither Washington Nor Beijing is untenable in a context where the US is unambiguously the aggressor in the new cold war while China’s rise is widely welcomed in the global South.

Later, he adopts Noam Chomsky’s famous phrase “manufacturing consent” while looking at the media’s coverage of China and how issues are distorted to build support for our own ruling class’s hostility to it: essential reading here is a demolition of the wild claims made about alleged abuses in Xinjiang and their less than objective origins.

Developed from articles written on different aspects of China and its revolution — many originally published in the Morning Star — this is a highly readable narrative that doesn’t presuppose detailed knowledge of Chinese history or politics.

The thematic character means many chapters work well on their own, and will make it a handy reference point for anyone wanting to brush up on specifics like the anti-poverty campaigns or China and climate change. It’s extensively referenced, and welcome in quoting more Chinese than foreign sources on the country.
​
Highly recommended.

Author

Morning Star 


This article was produced by Morning Star. 

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6/10/2023

Why China’s socialist economy is more efficient than capitalism By: John Ross

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The difficulty the U.S. faces in its current attempts to damage China’s economy was analysed in detail in the article “The U.S. is trying to persuade China to commit suicide”. Reduced to essentials, the U.S. problem is that it possesses no external economic levers powerful enough to derail China’s economy. The U.S. has attempted tariffs, technology sanctions, political provocations over Taiwan, the actual or threatened banning of companies such as Huawei and Tik Tok etc. But, as always, “the proof of the pudding is in the eating.” Taking the latest period, during the three years following the beginning of the Covid pandemic, China’s economy has grown two and a half times as fast as the U.S. and six times as fast as the E.U..

Therefore, as the previous article put it, in the economy the U.S. cannot “murder” China—even although it can create short term problems. Furthermore, unlike with Gorbachev, whose illusions in the U.S. led to a centralised political collapse of the CPSU, the disintegration of the USSR, and an historical national catastrophe for Russia, the policies of Xi Jinping and the CPC are centrally protecting China and socialism.  As the U.S. cannot pursue a course of “murder”, therefore it is forced to attempt an indirect route to get China to commit “suicide”—that is, to try to persuade China to adopt policies which will damage it.

Given that economic development underlies China’s success, one of the most central of all U.S. goals is to attempt to persuade China to adopt self-damaging economic policies. Enormous resources are therefore poured into spreading factually false propaganda regarding China’s economy. This also has the secondary goal of internationally attempting to persuade others not to learn from China’s economic success—because an understanding of the reality that China’s socialist economy is more efficient and successful than capitalism would be a devastating ideological blow to the U.S..

A crucial part of this false propaganda is to try to get accepted as “truth” claims about China’s economy which are entirely false—as basing policies on “facts” which are untrue would naturally lead to wrong policies. One of the most important of these false claims is that China’s socialist economy is “inefficient” compared to capitalism—or, more specifically, that investment in socialist China is inefficient in creating economic growth compared to capitalist America or in general compared to capitalist countries.

Naturally, socialism’s goal is not abstract economic efficiency, it is people’s well-being. But an inefficient economy, in the long term, would be incapable of maintaining the maximum well-being of the people. Therefore, how efficient an economy is constitutes an important issue in economic development. Claims that capitalism is more economically efficient than capitalism, usually put in the form of U.S. claims of the “inefficiency of socialism”, consequently has at least two purposes.

First, most immediately, to attempt to persuade China that as its investment is allegedly “inefficient” it should be reduced. As discussed in the earlier article, “The U.S. is trying to persuade China to commit suicide”, a key U.S. goal to get China to reduce its level of investment in GDP. This is because that same policy was successfully used earlier by the U.S. to derail its competitor economies of Germany, Japan and the Asian Tigers.

Second, more generally and ideologically, this claim that China’s investment is inefficient, and capitalism’s is efficient, is an attempt to undermine and discredit socialism and promote capitalism.

In summary, such propaganda is an attempt to spread two interrelated falsifications.
  • First, that China’s investment is inefficient in promoting economic growth.
  • Second that this “inefficiency”, which doesn’t actually exist, is due to socialism as opposed capitalism.

As will be systematically factually shown below, the exact reverse of these claims are true. Socialist China’s investment is much more efficient in creating growth than in capitalist countries such as the U.S.. As will be shown, this efficiency of China is integrally linked to the socialist character of its economy.
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As usual the method will be used to use the wise Chinese dictum to “seek truth from facts”. The first section of the article will establish the facts showing the greater efficiency of China’s investment. The second section will demonstrate that the reasons for this lie in the socialist character of China’s economy.

Section 1—the high international efficiency of China’s capital investment
​Incremental Capital Output Ratio (ICOR)

As an opening aside it may be noted that the present author was taught at an early age that when a theory and the facts, the real world, do not coincide there are only two things that can be done. A sensible person, following the scientific method, abandons the theory: a dangerous one abandons the real world, that is the facts. But as will be seen there is a variant of this second position—that is simply to invent “facts” which are quite untrue!. A typical case can be taken from Business Week, where it was claimed:

It takes $5 to $7 of investment to generate a dollar’s worth of gross domestic product in China, versus $1 to $2 in developed regions such as North America, Japan and Western Europe.1

Similarly Western economic analyst Charles Dumas claims:

China is incredibly good at wasting savings through misallocating investment.2

It is in fact very easy to factually test these claims and show they are false. How much must be invested to generate a dollar’s worth of GDP is a perfectly standard and well-known economic measure—the Incremental Capital Output Ratio (ICOR). ICOR is defined as the percentage of GDP which must be invested to generate one percent GDP growth. Therefore, the lower the ICOR—provided it is a positive number, representing economic expansion and not contraction, the more efficient investment is in generating growth. The results of such standard measurements of ICOR are unequivocal. China has to invest significantly less than the U.S., Japan or Western Europe to generate a “dollars’ worth” of GDP—i.e. China’s investment is more efficient in generating economic growth than the Western economies.

Starting with the most recent results, the factual situation regarding efficiency of fixed investment in generating economic growth is shown in Table 1—which gives ICORs for the world’s 20 largest economies. These together account for 80.4% of world GDP. If the Eurozone as a whole is included, and also South Africa, so as to include all BRICS countries, then the Table shows the ICORs for countries and economic regions accounting for 83.9% of world GDP—i.e. for all economies which have a major impact on world growth.

Taking a five-year average, to avoid the effects of purely short-term shifts in the business cycle, China had to invest 7.1% of GDP to generate 1% of annual GDP growth. It may immediately be seen that China’s investment was characterised by its extremely low ICOR in terms of international comparisons—i.e. its extremely high efficiency in generating economic growth. China was the second best out of the world’s 20 largest economies. In particular, China’s ICOR of 7.1 was more efficient than the US’s 10.0, the Eurozone’s 22.4, Germany’s 30.3, the U.K.’s 70.1—not to speak of Japan’s ICOR which was a negative number, showing that its economy contracted despite its investment.

Therefore, the claim that China’s investment is inefficient in producing economic development is simply a lie. There is nothing secret about the data from which this can be calculated, it is perfectly publicly available. Anyone who spreads falsifications that China’s investment is inefficient is consequently simply engaged in propaganda, not in serous economics.
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The implications of this fact that China’s investment is extremely efficient by international standards will be considered below after the facts are further explored.
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​Trends in China’s ICOR

Turning from current international comparisons to historical developments, Figure 1 shows China’s ICOR since 1966, again taking a five-year average for both GDP growth and the percentage of fixed investment in GDP in order to remove inevitable purely short-term fluctuations caused by business cycles. The starting date is taken as 1966 because that is after the end of the period of disruptions caused by the Great Leap forward.

The trends are clear.
  • From 1966-76 China’s ICOR rose sharply from 2.0 to 6.5. This was a serious negative development, a more than tripling of ICOR in a 10-year period, meaning China would have had to invest more than three times as high a percentage of GDP to maintain the same economic growth rate—or that if the level of fixed investment in GDP had remained constant China’s economic growth would have fallen to only one third of its previous level. The damaging economic consequences accompanying the political events of this period in the Cultural Revolution is therefore obvious.
  • After 1976 China’s ICOR began to improve—it had reached 5.1 by 1978. Following the systematic introduction of Reform and Opening Up in that year a prolonged improvement began and China’s ICOR fell to 2.5 by 1988. This showed the great improvement made by Reform and Opening up to China’s economic efficiency—international comparisons during this entire period are analysed below. This huge rise in the efficiency of investment following Reform and Opening Up launched the beginning of China’s “economic miracle” after 1978.
  • China’s ICOR then remained very low for two decades, rising only to 3.3 by 2007. Given the increasing level of China’s economic development in this period, the transition from a low-income economy first to a low-middle income economy and then to an upper middle-income economy, this was an extremely good performance. The reason for this is that, as analysed in detail below, it would be expected that as an economy becomes more developed its ICOR will increase—this is predicted by Marx’s analysis of the rising organic composition of capital. Consequently, an increase in ICOR from 2.5 to 3.3 over a 19-year period, during which China underwent huge economic development, was extremely impressive—as international comparisons analysed below demonstrate. Furthermore, China’s average growth rate did not fall significantly during this period as its percentage of fixed investment in GDP was also increasing, from 31.1% of GDP in 1988 to 37.9% of GDP in 2007. This offset a rising ICOR so China’s GDP growth rate remained essentially the same. This illustrates a simple but crucial point: because as an economy becomes more developed its ICOR will increases it will inevitably slow down if its percentage of fixed investment in GDP remains constant. But this economic slowing is not inevitable as is sometimes argued—if the percentage of fixed investment in GDP rises at least as fast as ICOR then an economy will not significantly slow as it becomes more developed. This is exactly what occurred with China from 1988 to 2007. The slowing of an economy as it becomes more advanced is therefore not inevitable, it is a choice which is determined by a decision not to raise the percentage of fixed investment in GDP in line with the increasing ICOR which occurs with economic development.
  • From 2007 China’s ICOR rose sharply to reach 7.4 in 2020. It is this trend that those who claim China’s investment is inefficient by international standards sometimes point to. But unfortunately, they make two fundamental factual errors. First, they fail to make international comparisons—it will be seen that the ICOR of other countries was also rising rapidly after 2007, in most cases by far more than China. That is, China’s worsening ICOR after 2007 was not some specific deterioration in China but a part of a process occurring internationally—one clearly created, given the dates involved, by the international financial crisis which started after 2007 and during which China actually performed better than almost every other major economy. Second, they fail to note the historical dynamic that as an economy becomes more developed its ICOR rises—and China is now approaching a “high income country” level by World Bank standards.
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​Rising ICOR with economic development

Analysing first the rising ICOR which occurs with economic development, then in the founding work of modern economics, The Wealth of Nations, Adam Smith had already analysed that with increasing economic development fixed investment would play a greater role in economic growth—and that the percentage of fixed investment in the economy would rise. This was repeated by Ricardo. It was made a foundation of Marx’s economics in his analysis of the rising organic composition of capital. It was reiterated by Keynes. Milton Friedman attempted to claim this claim was not accurate, but he made an elementary factual error in analysing only the U.S. economy and not international trends.

One of the manifestations of this increasing capital intensity of production with economic development is that ICOR rises as an economy becomes more developed. Thus Figure 2 shows the historical reality that the ICOR of developed/high income economies is higher than the ICOR of developing economies—to take the latest data, for the five years up to 2021, the average ICOR of developing countries was 8.2 but the average ICOR of high-income economies was 15.3.

This, of course, has clear consequences for China as it undergoes economic development. It means that as China makes the transition to a high-income economy its ICOR should be expected to rise—such a rise would not reflect inefficiency but simply the effects of economic development. Whether China’s fixed investment was inefficient could, therefore, not be established by showing that its ICOR had risen with time—as such a process would naturally occur with economic development. Inefficiency could only be established by a comparison to current economies at a similar stage of economic development—the comparisons, to be valid, would have to be with current economies, and not with historical cases of economies, due to the overall international rise of ICOR which has taken place particularly since 2007 and which is analysed below. This rise in ICOR is the first trend which affects China with economic development and shows why analyses which do not make international comparisons are invalid.

​Comparison of China to other developing economies

​Given this trend that ICOR will rise with economic development the relevant question is whether China has maintained its advantage in efficiency of investment compared to other countries? Figure 3 shows that the answer to this is clearly yes. Not only is the ICOR of developing countries lower than that for high income economies but China’s ICOR is lower than that for the average of developing countries. For all periods, except for the five years leading to 1976, China’s ICOR was lower than the average for developing countries. Taking the latest data, for 2021, the average ICOR of developing countries is 8.2 and for China 7.1. As China is by now one of the most highly developed of developing countries, and will in only a few years become a high income economy by World Bank standards, this shows the strong efficiency of China’s investment.
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While the increasing level of economic development of China would by itself have led to an increase in China’s ICOR a second international process has been taking place since the international financial crisis which has been negative for all countries—in particular high-income economies. Figure 3 shows this clearly. As can be seen the ICOR for both high income and developing economies, and therefore the international average, has worsened since 2007.
  • ICOR for developing economies rose from 3.5 in 2007 to 8.2 in 2021.
  • ICOR for high income economies rose from 8.0 in 2007 to 15.3 in 2021.
  • The world average ICOR rose from 5.8 in 2007 to 10.9 in 2021.
  • China’s ICOR rose from 3.3 in 2007 to 7.1 in 2021.
Therefore, the worsening of China’s ICOR from 2007 to 2021 was not some process specific to China, representing part of a specific inefficient process within China, but was part of an overall international process in which ICOR rose globally. However, within this overall deterioration, China’s efficiency of investment in generating growth remained better than the average even for developing countries—whose efficiency of investment in generating growth itself remained better than that for high income economies. Regarding major economies, as noted at the beginning, China’s efficiency of investment in generating growth was ranked second out the world’s 20 largest economies.
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​Comparison with the U.S.

Because comparisons are frequently most specifically made between China and the U.S., the ICORs for the two countries are shown in Figure 4. As may be seen China outperforms the U.S. in the efficiency of investment in generating growth in all periods. Figure 3 and Figure 4 show clearly that claims such as that by Business Week quoted at the beginning, “It takes $5 to $7 of investment to generate a dollar’s worth of gross domestic product in China, versus $1 to $2 in developed regions such as North America, Japan and Western Europe,” are simply fraudulent—“fake news”. China has to invest less dollars to generate a unit of growth than the U.S.—as well as Europe or Japan.
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​Explanation of China’s ICOR worsening

Putting these trends together it can be clearly seen why China’s ICOR would have increased since 2007 and why it is entirely misleading not to make international comparisons. Two macro-economic processes were occurring.
  1. China is making the transition from a developing to a high-income economy, that is to more capital-intensive production, therefore its ICOR will go up.
  2. There has been a general global worsening of ICOR under the impact of the international financial crisis and China is part of that trend—China cannot completely escape the consequences of the overall international economic situation.
Therefore, a rise in China’s ICOR after 2007 is entirely to be expected. The relevant measure is therefore the international one—that is, how has China’s efficiency of investment in producing economic growth changed relative to other current economies at a similar stage of development. The factual answer is clear. China’s efficiency of investment is in terms of international comparisons extremely high—in particular superior to the U.S. Europe and Japan, as well as compared to other developing countries. What is factually striking is not that China’s investment is inefficient in generating economic growth, that is a propaganda falsification which serious economists should not be taken in by, but how highly efficient China’s economy is in terms of international comparisons.
​
Having established the facts, as opposed to the myths, the question is then obviously why is China’s investment so efficient?

​Section 2—Socialism is why China’s investment is so efficient

​Explanation of the facts

Turning from establishing the fact of the high efficiency of China’s investment, in terms of international comparisons, to explaining it, it will become clear that the overwhelming reason for China’s very high efficiency of investment is due to the socialist character of its economy. In particular, it results from China’s extremely strong anti-crisis macro-economic strength which flows from possessing a socialist economy compared to capitalist ones. To clarify this, given that the most frequent international comparison made for China is with the U.S., this will be concentrated on. Furthermore, this automatically deals with the other cases of high-income economies—as, while the U.S.’s efficiency of investment in creating growth is less than China’s, it is superior to the other major capitalist economies such as the EU and Japan.
​
The fundamental process which is involved, and which particularly creates China’s advantage compared to the U.S. in ICOR, can be seen from Figure 5. This shows that the worsening of U.S. ICOR, that is the efficiency of its investment, was not at all a smooth process. It was characterized by two specific periods of huge deterioration which were so severe that they affected average efficiency of investment over the entire period. These were a more than doubling of ICOR to 26.8 in the period leading to 2011, that is following the international financial crisis, and a rise to 16.8 in the period leading to 2020 in association with the Covid induced recession. In short, economic crises led to a sharp worsening of U.S. ICOR, to a severe fall in the average efficiency of U.S. fixed capital investment.
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To illustrate clearly the long-term cumulative effects of such crises, and to smooth out the extreme short-term spikes, Figure 6 shows a longer term, 10-year, average for U.S. and China’s ICOR. The long-term cumulative worsening of U.S. ICOR under the impact of its successive economic crises is clear. In short, the fall in the efficiency of U.S. capital investment was particularly associated with crises in the U.S. economy.
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​Economic slowdown and rising ICOR

Regarding the more precise explanation of this worsening of U.S. ICOR, it should be recalled that the latter is by definition GDP growth divided by the percentage of fixed investment in GDP. If ICOR has risen therefore one of two processes must have occurred—or both.
  • The first is that the rate of GDP growth has slowed.
  • The second is that the percentage of fixed investment in GDP has increased.
But while in principle either could have taken place factual examination shows that the worsening of U.S. ICOR since 2007 is entirely due to its economy slowing and none of it is due to an increase in the percentage of fixed investment in GDP.  U.S. gross domestic fixed capital formation was 22.3% of GDP in 2007, remained slightly below that level in the entire period after 2007, and was to 21.4% of GDP by 2021. Therefore, zero percent of the worsening of U.S. ICOR after 2007 was due to an increase in the percentage of fixed investment in GDP, and the entire worsening of ICOR was due to the slowdown in the average annual growth of the U.S. economy.

This process of economic slowing is shown in Figure 7. The U.S. went through two sharp recessions with negative growth—economic contraction of 2.6% in 2009 and of 2.8% in 2020. The contraction of the U.S. economy in crisis years sharply slowed its average growth rate and therefore raised its ICOR.
​
In contrast, while China’s economy slowed since the beginning of the international financial crisis, that is it could not entirely escape the negative consequences of the post-2007 financial crisis and the Covid pandemic, despite these international crises China never experienced in this period a year of economic contraction—unlike the U.S.. Consequently, the U.S.’s much weaker anti-crisis macro-economic capacity than China explains the superiority of China in efficiency of investment compared to the U.S. and is the primary explanation for the deterioration of U.S. ICOR—that is for the worsening of the efficiency of U.S. investment.
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​The fall in investment

Turning to what explains the much greater weakness of the U.S. than China in anti-crisis capacity it is crucial to understand factually what actually occurs in a major recession and the different behaviours of investment and consumption during it.

Consumption is a much higher percentage of GDP than fixed investment in the U.S.—in 2007, on the eve of the international financial crisis, consumption was 82.5% of U.S. GDP compared to 22.3% for fixed investment. This therefore sometimes leads to the false assumption, formed by not studying the facts, that it is falls in consumption which primarily creates recessions. But this commits a simple arithmetical error. The fluctuations in investment in the U.S. economy are so much more violent than the fluctuations in consumption that, despite the fact that investment is a much smaller percentage of GDP than consumption, it is fluctuations in investment which actually primarily control the U.S. business cycle—and in particular which create its recessions. This may easily be seen by looking at the facts.

Between 2007 and 2009, the latter being the worse year of the U.S. recession created by the international financial crisis, then overall U.S. GDP declined by 2.5% adjusting for inflation. The inflation adjusted fall in U.S. household consumption, which accounts for 82% of total U.S. consumption, was 1.5%. But the inflation adjusted fall in U.S. private fixed investment, which accounts for 82% of U.S. fixed investment, was 27.6%—almost twenty times as severe as the fall in consumption.

Figure 8 shows that, in current prices, between 2007 and 2009 U.S. household consumption rose by $145 billion and U.S. government consumption by $235 billion—a total rise in consumption of $380 billion. But this entire increase in consumption was more than offset by $508 billion fall in gross fixed capital formation. That is, the post-international financial crisis recession was overwhelmingly created by the fall in investment, not in consumption.
​
Moreover, depreciation of fixed capital during this period was $119 billion. Consequently, the fall in U.S. net fixed investment was even worse than that of gross fixed investment—a decline of $626 billion. Therefore by 2009, the U.S. capital stock was lower than in 2007, lowering U.S. potential for long term growth. In summary, the U.S. recession after 2007, and therefore the worsening in U.S. ICOR, was due to the fall in U.S. fixed investment during the international financial crisis after 2007.
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The reason the U.S. was unable to control this fall in investment is equally clear. The U.S. is a capitalist economy. That means, by definition, its dynamic is determined by decisions of private capitalists. If these capitalists decide not to invest the economy goes into recession—which, in turn produces an increase in ICOR. There is no U.S. state sector sufficient to offset this. Private ownership of all the main means of production therefore produces weakness in the U.S. macro-economic crisis mechanisms.

​China’s socialist anti-crisis macro-economic mechanisms

​In contrast to the U.S. Figure 9 shows what occurred in China in 2007-09, faced with the international financial crisis. In 2007 to 2009 China’s GDP, in inflation adjusted terms, rose by 20.0%. Looking at current prices, it may immediately be seen that there was no fall in fixed investment of the U.S. type. On the contrary, in current prices, China’s gross fixed capital investment rose more rapidly than any other major component of GDP—increasing by $890 billion. compared to $511 billion for household consumption and $233 billion for government consumption. China’s fixed capital depreciation in this period was $356 billion. Therefore, China’s net fixed investment rose by $534 billion. China’s capital stock was significantly greater in 2009 than in 2007, increasing its potential for long term growth—in sharp contrast to the U.S. trend.

The reason that, unlike the U.S., China’s fixed investment did not fall is also quite clear. China is a socialist economy with a large state sector and state-owned banks which entirely dominate its financial system. Following 2007 state investment, and financing of private investment by state owned banks, could be and was used to prevent a fall in fixed investment. In contrast, the private capitalist U.S. economy had no such anti-crisis mechanism. In summary, China’s large state-owned sector gave it much stronger macro-economic anti-crisis mechanisms than the U.S. The fact that China suffered no decline in output in any year during the international financial crisis, in turn, limited its rise in ICOR. So, it was the strength of China’s state sector, by preventing a fall in investment, which prevented recession and ensured China’s superior ICOR to the U.S. The macro-economic strength given to China by its state sector thereby ensured the high overall efficiency of China’s investment in generating growth.
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​Economic trends during the Covid pandemic crisis

Turning now to what occurred in economies during the Covid pandemic, not all national accounts data is yet available, but the overall pattern is clear. First, Figure 10 shows that China’s economy far outperformed the U.S. during the pandemic period. In the three years 2019-2022 China’s GDP grew by 13.3% compared to the U.S.’s 5.2%. That is, during the pandemic China’s economy grew by more than two and a half times as fast at the U.S..
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Regarding the internal structure of the U.S. economy during this period the changes in current prices in the main domestic components of GDP are shown in Figure 11. As in 2007-2009 there was a substantial increase in household consumption, of $2,970 billion. Government consumption also rose by $581 billion. Gross fixed capital formation also rose, by $838 billion, but this was insufficient to offset fixed capital depreciation of $848 billion. Therefore, U.S. net fixed capital formation fell by $10 billion—given the margin of error, and the small measured contraction, it is probably best to state that the rise in U.S. net fixed capital formation during this period was approximately zero. Clearly there was no significant addition to U.S. capital stock during 2019-2020—and there may have been no addition at all, or even a marginal fall.
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Turning to China, complete internationally comparable national accounts data is not yet available for the entire pandemic period. Nevertheless, comprehensive national accounts data is available for part of this period, and the more limited data until the end of 2022 leaves no doubt as to the overall pattern. The fundamental contrast in pattern with the U.S. is the same as in the post 2007 recession.
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Starting with the comprehensive national accounts data which is available for China for 2019-2021, Figure 12 shows that once again increase in gross domestic fixed capital formation was the single biggest contributor to China’s GDP growth in this period at $1,311 billion—as compared to $1,200 billion for household consumption and $428 billion for government consumption. This contrasts sharply with the U.S. pattern where, in 2019-2021, household consumption rose by $1,510 billion and gross fixed capital formation by $458 billion. Internationally comparable data for depreciation is not available for China after 2020 but given the fact that in 2020 fixed capital depreciation was $333 billion, and there is no reason to suppose it remotely reached almost $1,000 billion in 2021, it is clear that China’s net fixed capital investment was positive in the period 2019-2021.
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Turning to 2022, internationally comparable national accounts data for China is not yet published. But it is clear from the data which has been released by the National Bureau of Statistics that the same pattern continued. This shows that in 2022 total consumption accounted for 1.0% of the increase in GDP, gross investment for 1.5%, and net exports for 0.5%. As inventories are only a small part of that figure for total investment, this clearly shows that the contribution of fixed investment to GDP growth remained the leading contributor to China’s GDP growth in 2022 and therefore also for the period 2019-2022 as a whole. This is the exact opposite of the U.S. pattern in which household consumption was the leading contributor and fixed investment low.

​The stabilizing role of China’s state investment

The reason for the high contribution of fixed investment to China’s GDP growth during the pandemic period is also clear. Figure 13 shows the way in which China’s state investment, during a crisis, could be used to offset the decline in private investment. As the Wall Street Journal noted regarding China’s system of a socialist market economy, without understanding the significance of what it was saying in terms of the superiority of China’s socialist system:
Most economies can pull two levers to bolster growth: fiscal and monetary. China has a third option. The National Development and Reform Commission can accelerate the flow of investment projects.3
Examining the detailed pattern during the pandemic in China, in both the peak Covid crisis year of 2020 and during the economic slowdown of 2022, the increase in private investment fell to very low levels—1.0% in and 0.9% in 2022. But overall fixed investment remained significantly higher—2.9% in 2020 and by 5.1% in 2022. The reason for this was that in those years China’s state investment could be and was significantly increased—a rise of 5.3% in 2020 and 10.1% in 2022. This produced a strong anti-cyclical effect in preventing a more severe decline in investment. In contrast, during 2021, when the economy was recovering and private investment was rising relatively strongly, the rate of growth of state investment was reined back to 2.9%.

The reason that China’s overall investment could remain high was only due to the large size of China’s state sector. To be precise in making a comparison to the U.S., in 2022 only 16%, less than one sixth, of U.S. fixed investment was in the state sector, accounting for only 3.4% of GDP. Given this extremely small size of the U.S. state sector even a very high percentage increase in U.S. state investment would be unable to prevent overall U.S. fixed investment from falling—to offset a 10% fall in private investment U.S. state investment would have to rise by 50%.
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In contrast, China’s large state sector, means it is possible to stabilize China’s investment level with much lower increases in state investment. In short, China’s large state sector is an extremely powerful anti-crisis mechanism. This, in turn, because it sustains economic growth, prevents the type of severe crisis increases in ICOR seen in capitalist economies such as the U.S.. China’s large state sector, therefore, has a powerful effect in keeping China’s ICOR down and maintaining a high level of investment efficiency.

​Seek truth from facts or abandon the real world?

Finally, what are the conclusions that follow from these facts? And why are entirely false claims made that China’s investment is inefficient in generating economic growth which are in fact are the complete opposite of the truth?

This comes back to the point made at the beginning of this article of what happens if the real world, the facts, and a theory do not coincide? According to the theory of those who believe Western capitalism is a superior economic system, a capitalist system must be more efficient than a socialist one. But as the facts contradict this theory then science would demand that the theory be changed or abandoned. But that would lead to a conclusion that was against capitalist ideology—it would have to be accepted that China’s, a socialist country’s, investment was more efficient in producing economic growth than the U.S., Europe, and Japan. That is, it would have to be accepted that China’s socialist system was much more efficient in its investment than the Western capitalists—which is clearly an evidently unacceptable conclusion! Therefore, instead of abandoning the theory the real world has to be abandoned—instead of following “seek truth from facts” Western propaganda has to invent facts and abandon the real world!
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[The Chinese version of this article was published at Guancha.cn.]

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Notes:
  • ↩ Bremner, B. (2007). ‘The Great Bank Overhaul’. In P. Engardio (Ed.), Chindia (pp. 204-210). New York, US: McGraw Hill.
  • ↩ Dumas, C., & Choyleva, D. (2011). The American Phoenix. London: Profile Books.
  • ↩ Orlik, T. (2012, May 29). Show Me The China Stimulus Money. Retrieved February 11, 2014, from Wall Street Journal: http://online.wsj.com/news/articles/SB10001424052702303674004577433763683515828

Author

​John Ross is a senior fellow at Chongyang Institute for Financial Studies, Renmin University of China. He was formerly director of economic policy for the mayor of London.


This article was republished from Monthly Review. 

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6/10/2023

Revolution and counterrevolution: remembering Tiananmen 34 years later By: Amanda Yee

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This June 4 marks the 34th anniversary of what is known in the United States as the Tiananmen “massacre.” 

The story we are typically told in the West is that young student activists had gathered in Tiananmen Square, uniting around the liberal demands of democracy and freedom, bravely defying the repressive Chinese government. After weeks of these ongoing protests, the Communist Party of China had had enough and cracked down on the peaceful protesters. As the story goes, in the early morning hours of June 4, 1989, People’s Liberation Army tanks rolled into the square. They were said to be indiscriminately shooting and mowing down innocent, unarmed protesters, killing thousands.
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To put it simply, this particular understanding of a “massacre” of pro-democracy protesters in Tiananmen Square on June 4 is a fabrication, the mythology of which has been exploited by the West for over 30 years as evidence of the ruthless, authoritarian nature of the CPC to justify imperialist aggression against China.
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​The iconic “tank man”
Even the story of the “tank man” — the most iconic image to come out of the event and has become a metonym for the Tiananmen massacre itself — has been deliberately manipulated by the U.S. media machine in the service of its anti-China propaganda effort. For one, the photo was taken on the morning of June 5, not June 4, so the military tanks were actually leaving the square. And second, the man in the photo was not run over by the tanks as implied by the image. The full video shows that after a few seconds of the stand-off, the tank attempts several times to swerve around the man, but he manages to keep stepping in its way blocking its path. Finally, the man climbs on top of the tank, looks to speak to the driver for a few minutes, before finally climbing off and eventually jumping in front of the tank’s path again. The standoff continues for another few seconds, before the man is finally pulled away by a group of civilians.
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The truth of the 1989 Tiananmen protests is far more complex than the simple rendering of an authoritarian Chinese government cracking down unprovoked on pro-democracy protesters — it’s a story of societal divisions unresolved from the Cultural Revolution, which bled into the “reform and opening up” policy implemented under the leadership of Deng Xiaoping, finally erupting into the the seven-week long occupation of Tiananmen Square. It is also a story of the internal and external contradictions the Communist Party of China found itself navigating as it embarked on economic development.

​1966-1976: The Great Proletarian Cultural Revolution

To fully understand the Tiananmen protests, we need to lay out the economic conditions and emerging ideological undercurrents which laid the foundations for them. In 1966, Mao along with close allies in the leadership of the Communist Party, like Jiang Qing, Wang Hongwen, Zhang Chunqiao, and Yao Wenyuan — known as the Gang of Four — launched what is known in China as the Great Proletarian Cultural Revolution. This triggered a decade-long struggle within the CPC between their faction — which sought to prevent China and the international communist movement from going down the path of what they saw as Soviet revisionism that strayed from the revolutionary principles of Marxism — and who they called the “capitalist roaders” led by Deng Xiaoping. 

It’s important to note here that both factions of the CPC feared counterrevolution and recognized the necessity of economic development in order to overcome the legacy of its century of domination by colonial powers, but differed in their assessment of how to achieve it. Mao favored the continuation of a fully planned economy. He feared a new local bourgeoisie would develop as a result of opening up China to the global capitalist economy, and that it would bring with it counterrevolution. Deng, on the other hand, recognized these risks, but was willing to take the gamble. By granting access to its domestic market and cheap labor pool, China would in exchange receive access to Western technology, allowing it to develop the productive capacity of its economy. Deng saw no other option but to walk that tightrope to achieve modernization.

Mao saw the Cultural Revolution as a continuation of the class struggle. The ten-year campaign not only targeted those seen as revisionists and counterrevolutionaries both inside and outside the party, but also attempted to bridge the divide between the rural and urban populations. The political tumultuousness and social upheaval of the period is well known, but less acknowledged are its achievements, particularly in education reform and expansion of medical care into the rural sectors of society. At the time, 80% of the Chinese population lived in the rural areas, and most of them were illiterate. The Cultural Revolution saw expansion of primary school education and development of railways and other infrastructure to these areas. During this period, college entrance exams were suspended, and instead, high school graduates were sent to the countryside to do work and learn from local populations. 
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Despite these achievements, the rural-urban class divide still remained, and these antagonisms would intensify in the lead-up to, and during, the Tiananmen protests.

1976-1978: death of Mao and path to reform

After a decade, the Cultural Revolution ended with Mao’s death in 1976. In December 1978, at the Third Plenary Session of the 11th Central Committee, the CPC met and adopted the “Resolution on certain questions in the history of our party since the founding of the People’s Republic of China” to reckon with and correct what they saw as the mistakes of the Cultural Revolution, and to officially set the party on the path to reform. Recognizing the Cultural Revolution as a “severe setback,” this resolution placed the responsibility for its excesses on Mao, but did not repudiate him. It argued Mao made grave mistakes during the later years of his life, but what he contributed to China and the CPC far outweighed whatever missteps he took.
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With this resolution came a reevaluation of the priorities of the revolution. Whereas Mao had previously identified the class struggle — of which the Cultural Revolution was the culmination — as the principal contradiction, the CPC now contended that China had advanced past this stage, as the “exploiters have been eliminated as classes.” While elements of class struggle still remained, the principal contradiction was now of backward social productivity versus people’s material needs. This resolution concluded:
After socialist transformation was fundamentally completed, the principal contradiction our country has had to resolve is that between the growing material and cultural needs of the people and the backwardness of social production. It was imperative that the focus of Party and government work be shifted to socialist modernization centering on economic construction and that the people’s material and cultural life be gradually improved by means of an immense expansion of the productive forces. In the final analysis, the mistake we made in the past was that we failed to persevere in making this strategic shift. What is more, the preposterous view opposing the so-called “theory of the unique importance of productive forces,” a view diametrically opposed to historical materialism, was put forward during the “cultural revolution”… All our Party work must be subordinated to and serve this central task — economic construction. All our Party cadres, and particularly those in economic departments, must diligently study economic theory and economic practice as well as science and technology.
Thus, the CPC embarked on the road to combine its planned economy with a market-based one in order to, in Deng’s words, “liberate the productive forces and speed up economic growth,” so that the people of China would one day achieve common prosperity.

1980-1989: Reform and Opening-Up era

Under Deng’s leadership, the CPC officially launched its “Reform and Opening-Up” program in 1980 to reboost an economy devastated by the Cultural Revolution and speed up modernization to build its productive forces. During this period, China integrated itself into the world economy abroad, while scaling back social welfare programs and implementing economic liberalization policies domestically.
The “reforms” included domestic policies to boost economic productivity. The government’s “iron rice bowl” safety net was gradually chipped away, jobs were no longer guaranteed by the government, and the centrally planned economy was transformed into more of a market-oriented one, while retaining some level of state control. In the rural areas, communes were decollectivized, with the collective farming system converted into a “household responsibility system,” which “allowed households to contract land, machinery, and other facilities from collective organizations.” The households could make independent operating decisions within the confines of their contract, which allowed farmers to financially benefit from their crops. Farmer incomes and agricultural prices were raised to encourage consumption in the rural areas and help further close the rural-urban income gap. Crop yields increased significantly during this period, adding another major boon for farmers. Urban reforms included decentralizing state industrial management and reforming state-owned enterprises to grant them some level of business independence and autonomy, and the lifting of price controls on staple foods and agricultural commodities.

The “opening up” included the implementation of Deng’s “Open Door Policy,” which allowed for foreign business investment into the country in exchange for access to China’s cheap labor pool and the promise of super-profits. A degree of risk was always present in the pursuit of these economic policies. They opened up China to foreign investment and foreign technology transfer to allow it to overcome its poverty and underdevelopment, but as predicted a capitalist class emerged. Along with that came a new bourgeois ideology, producing social forces hostile to socialism. Now a segment of society, particularly students and intellectuals, increasingly looked westward to the United States and its institutions as an aspirational political model. 

Liu Xiaobo — one of the most vocal activists during the Tiananmen protests who later won the Nobel Peace Prize — relayed such pro-colonialist aspirations in a 1988 interview when he firmly stated, “To choose Westernization is to choose to be human.” In another 1988 statement, Liu similarly asserted, “It took Hong Kong 100 years to become what it is. Given the size of China, certainly it would need 300 years of colonization for it to become like what Hong Kong is today. I even doubt whether 300 years would be enough.”

Of this political shift among China’s intellectuals, Li Minqi, a Chinese political economist who also participated in the Tiananmen protests as a student, wrote, “[A]mong the intellectuals, there was a sharp turn to the right … Many regarded Mao Zedong himself as an ignorant, backward Chinese peasant who turned into a cruel, power-hungry despot who had been responsible for the killing of tens of millions. The politically active intellectuals no longer borrowed discourse from Marxism. Instead, western classical liberalism and neoliberal economics, as represented by Friedrich Hayek and Milton Friedman, had become the new, fashionable ideology.”

For his part, Deng anticipated and warned of these kinds of bourgeois ideological undercurrents, which would later feature so prominently among the student protesters at the 1989 Tiananmen protests. In 1985, he stated matter-of-factly, “Since the downfall of the Gang of Four an ideological trend has appeared that we call bourgeois liberalization. Its exponents worship the ‘democracy’ and ‘freedom’ of the Western capitalist countries and reject socialism. This cannot be allowed. China must modernize; it must absolutely not liberalize or take the capitalist road, as countries of the West have done.”

Though Deng saw the necessity of employing “the mechanisms of the marketplace to develop its productive economy” for the time being, the goal of socialism remained. Deng argues that the development of production would in time lead to common prosperity for the people.

1989: the Tiananmen Square protests

It was these legacies of the Cultural Revolution and the economic liberalization reforms, which would provide the social basis for the Tiananmen protests. On April 15, 1989, Hu Yaobang, former General Secretary of the CPC and one of the more radical advocates of the free market program, suffered a heart attack and died suddenly. Hu was one of the leaders of the “Boluan Fanzheng” (translated as “to eliminate chaos, and return to normality”) campaign, which reversed many policies of the Cultural Revolution. It was the Boluan Fanzheng policy which saw the reopening of universities closed during that ten-year period, as well as the reopening of college entrance exams, granting students a pathway to higher education again. He also exonerated a number of intellectuals persecuted during the Cultural Revolution. For these reasons, Hu was a beloved figure among students and intellectuals.

Over the next few days, university students mourned Hu’s death and held rallies in his honor, marching to Tiananmen Square to place flowers for him at the Monument to the People’s Heroes. These rallies then evolved into protests for further economic and political reform, turning into an occupation of the square, which lasted seven weeks until June 4, in what we now know as the Tiananmen protests.

The demands in the beginning of the protests were mostly related to the lifting of price controls, inflation and labor market competition. The lifting of price controls led to price hikes on staple foods and commodities for those in urban areas. This was a boon to rural businesses and farmers, but in the cities this intensified an existing inflation and cost of living crisis. Urban workers’ wages were not keeping pace with this inflation, which had reached a staggering 18% by 1989. It was for these reasons that a significant number of workers eventually joined the students in the protests in Tiananmen.

Demands also revolved around ending corruption within the CPC, as some party members used their political leverage to become the earliest capitalists, enriching themselves. The student protesters especially resented those in the party who with the right connections were able to attain the few higher level jobs that existed. While the 1980s saw an expansion of higher education, most jobs at that time were still in low-end manufacturing, which didn’t appeal to university students.

But sharp class divisions were evident among those in the square, and tensions existed between student and worker protesters. Though they were eager to grow their numbers and enlist support, the student protesters shunned and looked down upon the urban workers, and the two segments were often segregated at Tiananmen. Student leaders insisted that the workers stay off the main part of the square, in order to keep the democracy movement in their eyes “pure.”

The student leaders of the protests were not shy in voicing their contempt for the workers. In an interview for The New York Times, Wang Dan, a 20-year-old history student at Beijing University who was one of the most prominent student leaders in the square, stated bluntly that the movement was not yet ready for worker participation. According to him, “Democracy must first be absorbed by students and intellectuals before they can be spread to others.”
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Li Minqi similarly wrote of these elitist attitudes felt among the students in his later reflection of the protests:
As the student demonstrations grew, workers in Beijing began to pour onto the streets in support of the students, who were, of course, delighted. However, being an economics student, I could not help experiencing a deep sense of irony. On the one hand, these workers were the people that we considered to be passive, obedient, ignorant, lazy, and stupid. Yet now they were coming out to support us. On the other hand, just weeks before, we were enthusiastically advocating “reform” programs that would shut down all state factories and leave the workers unemployed. I asked myself: do these workers really know who they are supporting?
Indeed, the demands put forth by the protests overall were often diverse, and at times at odds with one another. Workers were critical of Deng’s economic liberalization policies as they bore the brunt of their negative impacts. Inspired by the emerging capitalist class in China, the students demanded an acceleration of these reforms, yet were also protesting the very consequences these reforms brought — corruption, inflation and skyrocketing cost of living. And of course, the vague demands of “democracy” adopted by the students and intellectuals reflected the nascent “bourgeois liberalization” political orientation that Deng had previously warned of.

And while worker participation in the protests was certainly not insignificant, it should be noted that the political character of a movement is not determined by the individual ideologies of the participants — it is determined by the movement’s leadership. It was the student protesters with their pro-western orientation, signs written in English and cries for bourgeois democracy that received the most international media attention and the most resources. They refused to cede or even share leadership with urban workers. 

Over time due to this media amplification, it was the student leaders’ demands that became synonymous with the movement itself. Reporters from NBC, BBC, ABC and Voice of America had a consistent presence throughout the protests and covered them extensively. The U.S.-funded propaganda arm VOA, in particular, had an especially heavy presence in Tiananmen with one correspondent recalling, “VOA was extremely popular on the square, with students holding up radios so crowds could hear our Mandarin-language newscasts. Others transcribed our stories and posted them on electrical poles around the city.” 

As time passed, the actions along with the demands began to escalate as student leaders became more and more hardline and radicalized. In mid-May, the student leaders organized mass hunger strikes to coincide with the visit of Mikhail Gorbachev, then-leader of the Soviet Union. The hunger strikes prevented the Chinese government from welcoming Gorbachev in Tiananmen Square. The protests paralyzed the city and alarmingly created fissures and power struggles within the CPC. Party General Secretary Zhao Ziyang openly expressed sympathy toward the student protesters even visiting them in the square as a show of support. Premier Li Peng finally declared martial law on May 20, further radicalizing the students.

Many protesters defied martial law and chose to remain in the square. In late May, to further pander to western sympathies, the students built and erected a 30-foot “Goddess of Democracy” statue, bearing a striking resemblance to the Statue of Liberty, attracting international attention. 

There was undoubtedly CIA involvement in the protests, but the full extent remains unclear to this day. According to a Vancouver Sun article from Sept. 17, 1992, the CIA had sources among protesters and within Chinese intelligence services, and it was assisting students in organizing the anti-government movement by providing support in the form of typewriters and other equipment. Chinese officials at the time also accused U.S. diplomats and CIA agents of “collecting intelligence aggressively” during the protests, and Zhao was later arrested and charged as having connections to U.S. intelligence.
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Given what we do know about CIA involvement in other socialist countries during the Cold War, however, we can safely assume there was some level of U.S. intelligence at least attempting to steer the direction of the student demonstrations. Soon, what were demands to control inflation turned into calls to overthrow the CPC entirely, with some leaders even going so far as calling for bloodshed.
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In a now infamous tearful interview, 23-year-old student protest leader Chai Ling, who was considered “commander-in-chief” of the square, tells a BBC reporter:
The students keep asking, “What should we do next? What can we accomplish?” I feel so sad, because how can I tell them that what we are actually hoping for is bloodshed, for the moment when the government has no choice but to brazenly butcher the people. Only when the square is awash with blood will the people of China open their eyes. Only then will they really be united.
It’s worth noting here that by the time of this interview, Chai had already secured a visa to the United States as part of the CIA’s Operation Yellowbird mission, which secretly smuggled hundreds of student dissidents out of China. She would not even be around for the bloodshed she was calling for. After their arrival into the United States, student leaders like Chai would then be thrust into the media spotlight, meeting with politicians and used as propaganda tools to cement the mythology around the so-called June 4th massacre.

Up until that point, the response to the demonstrations on the part of the CPC had been remarkably restrained throughout. But It was clear that without decisive action, the protests had the potential to escalate even further, bringing about the very real threat of civil war or even toppling the Chinese government.

​June 4, 1989: myth vs. reality

As the story goes, the protesters continue to defy martial law, and finally having had enough, the CPC orders the People’s Liberation Army to clear Tiananmen. According to this story, in the early morning hours of June 4, PLA tanks roll into the square, indiscriminately mowing down peaceful, unarmed demonstrators in a bloody crackdown. The “massacre” narrative is as sensationalist as it is incontestable: Supposed eyewitness accounts tell tales of student protesters linking arms only to be run over repeatedly by military vehicles, remains of protesters incinerated and then washed down drains, of students begging for their lives only to be bayoneted by soldiers. Some western reports estimate as many as 10,000 killed.

But there was no such massacre in Tiananmen Square. By that time, most of the protesters had left the square, and the ones who remained left peacefully after negotiating with the army.

A leaked diplomatic U.S. cable sent around that time confirms there was no such bloodshed in the square. “They [student protesters] were able to enter and leave the square several times and were not harassed by troops,” the cable reads. “Remaining with students by the Monument to the People’s Heroes until the final withdrawal, the diplomat said there were no mass shootings of students in the square or at the monument.”

Other eyewitness accounts from on-the-ground journalists corroborate this. CBS News correspondent Richard Roth, who covered the protests later wrote, “There were some tanks and armored personnel carriers. But we saw no bodies, injured people, ambulances or medical personnel — in short, nothing to even suggest, let alone prove, that a ‘massacre’ had recently occurred in that place.”

Likewise, Jay Matthews, who traveled to Beijing to cover the protests for The Washington Post, wrote in 1998, “The problem is this: as far as can be determined from the available evidence, no one died that night in Tiananmen Square. A few people may have been killed by random shooting on streets near the square, but all verified eyewitness accounts say that the students who remained in the square when troops arrived were allowed to leave peacefully.”

Reporter Nicholas Kristoff, then-Beijing correspondent for The New York Times, similarly disputed the account, printed in the Hong Kong newspaper Wen Wei Po, of PLA troops attacking students in Tiananmen:
The central theme of the Wen Wei Po article was that troops subsequently beat and machine-gunned students in the area around the monument [Monument to the People’s Heroes in Tiananmen] and that a line of armored vehicles cut off their retreat. But the witnesses say that armored vehicles did not surround the monument — they stayed at the north end of the square — and that troops did not attack students clustered around the monument. Several other foreign journalists were near the monument that night as well and none are known to have reported that students were attacked around the monument.

Street fighting on the night of June 3

While these journalists refute the narrative of a Tiananmen “massacre,” most of them do acknowledge that street fighting had occurred the night of June 3 in other parts of Beijing, albeit under different circumstances. This is consistent with Chinese government accounts of the events. 

On June 2, the CPC decided to clear Tiananmen Square. On the night of June 3, PLA tanks pushed into Beijing with clashes occurring in the neighborhoods of Muxidi, Gongzhufen, and along Chang’an Avenue. These clashes occurred outside of Tiananmen, so while there were some students involved, they were relatively few in number. Armed with Molotov cocktails, workers and civilians stopped and attacked trucks of soldiers, seizing weapons to use against the soldiers. Tanks were set ablaze by the rioters with soldiers still inside. Some soldiers were even lynched. 

A Wall Street Journal article from June 5, 1989, recounts: “As columns of tanks and tens of thousands of soldiers approached Tiananmen, many troops were set on by angry mobs who screamed, ‘Fascists.’ Dozens of soldiers were pulled from trucks, severely beaten and left for dead. At an intersection west of the square, the body of a young soldier, who had been beaten to death, was stripped naked and hung from the side of a bus. Another soldier’s corpse was strung up at an intersection east of the square.”

Journalist David Aikman recalls, “In some places, soldiers were stripped almost naked, chased or struck by angry citizens. Other injured troops had difficulty getting to hospitals as mobs deflated or slashed the tires of military ambulances.”
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According to official Chinese government figures, the number of people killed in these clashes totaled 241, a figure which includes PLA soldiers.

June 3 reveals historical legacies of Chinese socialist path

One might ask why these details matter. After all, people were killed during that time — what is the significance of the exact location, or how many? 

The details matter because they present a narrative not so easily co-optable by western press in the service of its imperialist aims. For one, the reality of the street fighting disrupts the popular understanding of the military attacking “non-violent” protesters — it is this characterization of “nonviolence” which is crucial to evoking western sympathy. The workers involved in these protests and clashes came from factories, steel mills, railway yards and construction companies, and they did not have the level of higher education that the student protesters did. They did not draw the same level of attention from western press as the highly educated, pro-western student leaders, who their university-educated counterparts in the United States could identify with and see themselves in. It is this status of untainted victimhood which mobilizes support for foreign intervention.

The details also present a story of what were at the time the contemporary realities and historical legacies of the Chinese socialist path. The night of June 3 saw an eruption of class antagonisms and deep societal divisions from the Cultural Revolution never fully resolved — and in fact heightened — by the policies of the Reform and Opening-Up era. PLA soldiers, for instance, were mainly recruited from the countryside where the CPC drew a large base of support and where there were many beneficiaries of Cultural Revolution and reform policies. Many urban workers and middle-class students and intellectuals suffered many negative impacts of these policies — albeit unevenly — such as inflation, job precarity and high cost of living. These clashes then can be understood as spontaneous expressions of these long-standing divisions.
​
These deaths are a tragedy and are understood in China as such, but they should be recognized as part of the tragic complexities of a nation attempting to overthrow the yoke of a century of underdevelopment and subjugation, and to assert its own sovereignty. That the West manipulates the details and fabricates its own mythology around what happened only speaks to its own self-serving imperialist ambitions.

The Tiananmen protests as a counterrevolutionary force

Again, the class character of a movement is determined not by the individual make-up of its participants, but by its leadership. Workers may have been active during the demonstrations, but the student leadership had a bourgeois, pro-capitalist orientation. It’s clear from the students’ contempt for and behavior toward the workers at Tiananmen alone that their goals did not lie in advancing the interests of the broad masses of people. 

For western imperialists, Deng’s reforms were not enough: They wanted unfettered access to China’s markets and resources so that the country became a neocolony of the United States. Around the same time as the Tiananmen protests, anti-communist and counterrevolutionary revolts were spreading across Eastern Europe. One only needs to look toward the collapse of the Soviet Union just a few years later to understand the stakes of Tiananmen in 1989. If these anti-government forces had succeeded, China would have been thrust back decades in its economic and socialist development. An overthrow of the CPC would have resulted in the kind of “shock therapy” capitalist reforms that devastated the former USSR applied to China’s 1.1 billion people. The ensuing poverty, disease and starvation would have been massive.

It was at Tiananmen that the unresolved contradictions from the Cultural Revolution and the Reform and Opening-Up period were unleashed — this much is true. But in the end, the final confrontation was between revolution and counterrevolution, and the outcome has had profound consequences that continue to shape the world today.

Author

​Amanda Yee


This article was republished from Liberation News.

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5/16/2023

Ideological work in the new era of socialism in China By: Gabriel Martinez

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We are pleased to publish this important and well-researched article by Gabriel Martinez on ideological work and struggle in China since the beginning of ‘reform and opening up’ at the end of the 1970s. Gabriel is a postgraduate student from Brazil, currently finishing his studies in Marxist Philosophy at Beijing Normal University. He has lived in China for the last five years.

He notes that the important changes in the country’s economic sphere have been accompanied by a series of ideological changes, with both positive and negative aspects and bringing new challenges for the development of socialism in China. Noting the emergence of a trend of bourgeois liberalization, the author stresses that this has always been opposed by successive generations of Chinese leaders. “However, while recognizing that the Party has always called attention to the need to strengthen ideological work, one cannot fail to recognize that Xi Jinping’s coming to power represents a turning point in the Communist Party of China’s political line… Xi Jinping has been paying close attention to this problem, aiming to restore and consolidate the authority and leading role occupied by Marxism as the theoretical basis guiding socialist construction and modernization in China.”

Analyzing the effects of the existence of capitalist relations of production in the primary stage of socialism on the ideological sphere, Gabriel notes that “it is necessary, therefore, to differentiate between what are the positive effects that capitalist private property can create for the development of the productive forces, from what is the ideology it inevitably produces, and the negative effects generated by capitalist relations of production in the most varied domains of social life.”

A great deal of other important material is covered in the article, which we consider well worth careful study and discussion. It was previously published in Chinese on the website of Kunlunce, a Chinese think tank that publishes articles by Marxist professors and researchers, and in Portuguese on the website Resistencia, which is associated with the Communist Party of Brazil (PCdoB).
The Reform and Opening policy, initiated by the Communist Party of China in 1978, has produced important transformations in the economic sphere of the country. The transformation in the structure of property, little by little, caused the basic structure of property relations in the country to change to a system where the state public economy was considered its backbone, but coexisting with multiple forms of property, which exist and develop together (including domestic and foreign private property). These transformations were accompanied by a series of ideological changes, changes that have an influence on the most varied sectors of social life. This influence can be seen in the way of life of the population, in the economy, in culture, in the arts, and also in politics. Chinese society, from an ideological point of view, has become more “diversified”, and such diversification, obviously, not only has positive aspects, but also produces negative consequences and brings new challenges for the development of socialism in China. In this article I will try to outline some aspects of the formulations of the Communist Party of China on ideological work and how this work is acquiring a new role in China led by Xi Jinping.

The struggle against bourgeois liberalization in the new era of socialism

After the beginning of the reforms, an ideological trend emerged in China called “bourgeois liberalization. The phenomenon of bourgeois liberalization, to this day, exerts a pernicious influence on China’s development process and the building of a socialist culture. How does the Communist Party define this liberalization? According to Deng Xiaoping:

Since the fall of the Gang of Four an ideological trend that we call bourgeois liberalization has emerged. Its exponents idolize the “democracy” and “freedom” of Western capitalist countries and reject socialism. This cannot be tolerated. China must modernize, but she must not promote liberalization or take the capitalist path, as Western countries have done. [1]

Deng Xiaoping’s quotation clearly shows us that, from the very beginning, the problem of bourgeois liberalization has always been the object of attention by the leaders of the Communist Party of China. Deng Xiaoping, Chen Yun, Jiang Zemin, Hu Jintao, etc., dealt with this problem several times. However, it is not wrong to say that over the years, far from being solved, it still exists and exerts considerable influence. Faced with the new political line approved after the 3rd Plenary Session of the 11th Central Committee of the CCP held in 1978, which established a break with the previous line of “taking class struggle as the main link,” placing economic construction and socialist modernization at the center of the Party’s activity, a very active political tendency arose, which defended the idea that besides reforms in the economic sphere, it was also necessary to carry out reforms of a political nature, calling for more “democracy” and “freedom. This ideological current became quite politically active, especially from the 1980s onwards, seeking to divert the Reform and Opening from its original path and direction of perfecting the socialist system, to the path of restoring capitalism and the bourgeois-type political system, as happened in the Soviet Union.

At first, especially among intellectual circles, an anti-Mao Zedong wave swept the country, leading to an open contestation of the resolutions presented by the CCP in its historic document On Some Problems in the History of Our Party from the Founding of the PRC to the Present Day in 1981. The document, while stating that Mao Zedong made some mistakes at the end of his life, is quite clear in its recognition and exaltation of the Chinese leader’s historical role in the history of Party and Republic building. The document clearly states that Mao Zedong’s successes far outweigh his mistakes. Says the resolution:

Comrade Mao Zedong was a great Marxist and a great proletarian revolutionary, strategist and theoretician. It is true that he made serious mistakes during the “cultural revolution,” but if we judge his activities as a whole, his contributions to the Chinese revolution arguably outweigh his mistakes. His merits are of the first order and his mistakes of the second order. He rendered invaluable service in founding and building our Party and the People’s Liberation Army of China, winning victory for the cause of liberating the Chinese people, founding the People’s Republic of China, and advancing our socialist cause. He made great contributions to the liberation of the oppressed nations of the world and the progress of humanity. [2]

The advocates of bourgeois liberalization, taking advantage of the debates started all over the country on how to evaluate the first thirty years of China’s socialist construction process, used it as an excuse to put forward their anti-communist ideas. The problem of bourgeois liberalization reached alarming levels and ended up resulting in the counter-revolutionary riots of 1989, showing that even though the Party had carried out campaigns to fight the so-called “spiritual pollution”, at that time, several mistakes and failures were committed by the Party in terms of the way it conducted the work of political and ideological education of the Party cadres, and of the population in general. Such a mistake was recognized by Deng Xiaoping himself, who stated at that time, “Our most serious mistake was in education – we did not provide enough education for the youth, including the students.” [3]

The founding leaders of the People’s Republic of China have always paid great attention to the problem of ideological education. Mao Zedong, in the classic work How to Correctly Solve the Contradiction Among the People draws attention to the protracted character of the ideological struggle between the bourgeoisie and the proletariat. According to Mao Zedong:

A long period is still needed to decide the outcome of the ideological struggle waged in our country between socialism and capitalism, since the influence of the bourgeoisie and the intellectuals who come from the old society will persist in China for a long time as a class ideology. If we do not understand this situation well, or if we do not understand it fully, we run the risk of making the gravest of mistakes, that of ignoring the need to conduct the struggle on the ideological plane. [4]

The CCP has over the years developed a very consistent ideological political line to deal with the problem of bourgeois liberalization. Jiang Zemin, for example, stated, “The practice of ideological work confirms that if proletarian thought does not occupy its position, it will be occupied by non-proletarian thoughts. We must pay attention and learn from these lessons.” [5]

However, while recognizing that the Party has always called attention to the need to strengthen ideological work, one cannot fail to recognize that Xi Jinping’s coming to power represents a turning point in the Communist Party of China’s political line. Particularly important for us to understand the political and ideological content of Xi Jinping’s thinking is the analysis of his speech delivered at a conference on propaganda and ideological work on August 19, 2013. In this speech, while remaining faithful to the principles established by previous leaders (Mao Zedong, Deng Xiaoping, Jiang Zemin, and Hu Jintao), Xi Jinping advances important reflections and formulations on how to develop political and ideological work in China. Although at that time the Communist Party of China had not yet coined the term “new era of socialism,” it is clear that the ideas contained in this important document are the compass that will guide the Party in what they call the “new era of socialism,” an era that officially begins as of the holding of the 19th Congress, held in 2017. In this speech, Xi Jinping says:

Economic construction is the central work of the Party, ideological work is extremely important work of the Party. Everyone clearly understands the positions of both areas of work, but in some localities and departments, it is clear that there is the phenomenon that in words the importance of both aspects of work is recognized, but there is no clarity when it comes to applying this principle. Doing the ideological and propaganda work requires that, first of all, this problem be solved. [6]

Economic construction of the country is still the central work of the entire Party. This important definition, first put forward during the 3rd Plenary Session of the 11th Communist Party of China in 1978, starts from the understanding that China, being a still backward country (especially when compared to the developed emphasising central capitalist countries), needs to put economic construction and the promotion of the development of the productive forces at the center of its attention. As Marxist economist Zhou Xincheng recognizes, establishing economic construction as the central work is “the result of the main contradiction of society,” so it cannot be understood as a subjective decision. [7] In emphasizing that ideological work is an “extremely important work”, Xi Jinping calls attention to the need for the entire Party to have a correct understanding of this work, recognizing that in many respects it has not been correctly performed, and has even been neglected.
Wang Qishan, current Vice President of the People’s Republic of China and a member of the Standing Committee of the Political Bureau of the Communist Party of China, in an article published in the People’s Daily, emphasized that Xi Jinping has “clarified confused ideas, recovering lost positions, reversing the wrong path, establishing the authority of the Central Committee, basically reversing the situation of weakening Party leadership.” [8]

The statements made by Wang Qishan are a recognition, by a senior Party and government leader, that many things need to be corrected if the cause of socialism in China is to continue advancing along a correct path. The weakening of the Party leadership is something that is closely related to ideological and educational work. Ideological work is precisely one of the main fronts on which the Party must exercise its leadership role, making sure that the mistakes made in this area are rectified, and the cause of socialism in China continues to advance in a healthy way. Ideological work, being a “work of utmost importance,” cannot be neglected under the excuse that “developing the economy” is the central aspect of Party work. As former leader Chen Yun stated:

If we promote socialist material progress and not socialist cultural and ideological progress at the same time, we will deviate from the correct path. If institutions or leading cadres forget or slow down their efforts to build socialist civilization, culturally and ideologically, they will not be able to do a good job in building socialist civilization materially and will even turn away from socialist and communist ideals. This is very dangerous. [9]

In this sense, the events in the Soviet Union and Eastern Europe are the most concrete example of what are the results produced by the underestimation of political and ideological work, as well as of a mistaken political line, in which the Communist Party of the Soviet Union, especially after the death of Josef Stalin, began to gradually distance itself from Marxism-Leninism. To illustrate with an example: American professor David Kotz, in an article where he recounts his experience in the Soviet Union, talks about an episode where he allegedly asked an official if he was a member of the Communist Party. According to Kotz, the officer replied, “Yes, I am a member of the Communist Party, but I am not a Communist. [10]

Experiences such as those reported by Professor David Kotz help us to understand what was the internal ideological environment prevailing in the PCUS and in Soviet society itself, already on the eve of its dissolution. The Soviet example should also serve as a lesson for the Chinese Communists, since this phenomenon is not uncommon in country either. Here we are facing a problem closely related to the question of political and ideological convictions that should guide the activity and action of Party members. As for this problem, the Chinese have been aware of its existence from the moment it began to manifest itself in an acute way.

Thus, the reasons that made the dissolution of the Soviet Union possible are the subject of constant reflection by the leaders of the CCP. Xi Jinping also went so far as to explicitly refer to the Soviet example to issue a warning to the CCP. According to Xi Jinping, by starting with the denial of Lenin and Stalin, the Soviet Union embarked on the path of historical nihilism, something that prepared the ideological ground for the justification of the “peaceful evolution” from socialism to capitalism. According to Xi Jinping:

Why did the Soviet Union disintegrate? Why did the Soviet Communist Party fall from power? One important reason was that the struggle in the field of ideology was extremely intense, completely denying the history of the Soviet Union, denying the history of the Soviet Communist Party, denying Lenin, denying Stalin, creating historical nihilism and muddled thinking. Party organs at all levels had lost their functions, the military was no longer under Party leadership. In the end, the Soviet Communist Party, a great party, dispersed, the Soviet Union, a great socialist country, disintegrated. [11]
It was on the ideological terrain and the lack of vigilance in the face of forces hostile to socialism that the Soviet Union was defeated. Mao Zedong, many years earlier, analyzing the importance of ideology in the process of seizing political power, whether from revolutionary or reactionary classes, stated: “Anyone who wants to overthrow a political regime must first create public opinion and do some ideological preparatory work. This goes for the counter-revolutionary classes as well as the revolutionary classes.” [12]

As soon as this problem appeared before the socialist camp and the Communist Parties, the Communist Party of China was in the front line of its denunciation, going on to develop a constant ideological struggle against the revisionist ideas which were propagated by the Communist Party of the Soviet Union, ideas which in practice contributed to the strategy being put forward by US imperialism. However, especially after the beginning of the Reform and Opening, at various levels the Party let down its guard in the face of the danger of peaceful evolution, which gave free course to the strengthening of imperialist cultural influence and the propagation of bourgeois liberalization. The anti-communist protests, which peaked in 1989 in the events in Tiananmen Square, prove such a thesis. Deng Xiaoping himself, commenting on the end of the Cold War and the general crisis of the socialist camp, recognized that:

It seems that one Cold War has come to an end, but that two others have already begun: one is being waged against all the countries of the South and the Third World, and the other against socialism. The Western countries are staging a third world war without firearms. By this I mean that they want to promote the peaceful evolution of socialist countries to capitalism. [14]

The beginning of the trade war against China, the fierce campaign promoted by imperialism on the issue of Xinjiang and the attempt to politicize and blame China for the beginning of the coronavirus pandemic, are nothing more than aspects of this ideological struggle promoted by US imperialism against Chinese socialism. To face this new challenge, it is essential that the Party and society strengthen ideological work and strengthen their understanding of Marxist theory. The question of ideological work and education, far from being something trivial, is a vital issue for the continuity and permanence of the Communist Party of China as the leading force of the Chinese nation and the cause of building socialism in China. The fact that such a problem has been recognized by the highest leaders as something pressing reveals how serious the ideological situation was in the country before Xi Jinping came to power.

The struggle against the marginalization of Marxism and the reaffirmation of its actuality

One of the main evidences of this problem in the ideological realm is the marginalization suffered by Marxism in recent years. Xi Jinping has been paying close attention to this problem, aiming to restore and consolidate the authority and leading role occupied by Marxism as the theoretical basis guiding socialist construction and modernization in China. To warn about the problem of marginalization of Marxism, far from being an exaggeration, is something quite clear to anyone minimally familiar with the internal situation of the country and with the prevailing ideological environment within Chinese society. The Marxist economist Liu Guoguang, in analyzing the ideological situation in theoretical circles – especially in the field of political economy – in China stated:

For some time, in the field of economic science research and teaching, the influence of western economics has increased and the guiding position of economic science of Marxism has been weakened and marginalized. In the field of economic theory research and teaching, it seems that nowadays Western economics has become the dominant trend; many students consciously or unconsciously take Western economics as the dominant economic trend in our country. Some people consider Western political economy to be the guiding thought for development and reform in China, some economists openly advocate that Western political economy should be seen as the dominant trend, replacing the guiding position of Marxist economics. Western bourgeois ideology permeates both economic research work and the work of formulating economic decisions. I am very concerned about this phenomenon. [15]

It is not only in the realm of the study and teaching of economics that Marxism undergoes a process of marginalization. Also in the fields of history, philosophy, arts, etc., Marxism has been marginalized to various degrees. The Party uses the term “historical nihilism” to describe all sorts of ideas that seek to explain Chinese history, especially the history of the CCP and the construction of socialism, in a distorted way. In the ideological realm, the main target of “historical nihilism” is precisely Marxism, the official state ideology that should theoretically guide and direct all activities and sectors of the country. Historian Gong Yun, a member of the Chinese Academy of Social Scientists, explaining the influence of historical nihilism in today’s China, said:

In the last two decades, although historical nihilism has been criticized in academic circles, the effect of these criticisms has not yet been obvious. The views advocated by historical nihilism have a wide social influence, especially in the new media, some newspapers, and among ordinary people. Historical nihilism has formed a certain social soil and created serious consequences of division and antagonism. [16]

Since the 18th CCP Congress, several internal ideological campaigns to combat historical nihilism have been carried out, and Xi Jinping himself even analyzed such a phenomenon in one of his speeches. At the February 20, 2021, in a Party history study conference, Xi Jinping said, “We must take a clear stand against historical nihilism, strengthen ideological orientation and theoretical analysis, clarifying the vague and one-sided understandings regarding some historical events in our Party’s history.” [17]

It is precisely because the situation has reached such a critical level that Xi Jinping pays close attention to the problem of the need to consolidate the leading position of Marxism in the ideological field. It is also for this reason that in recent years there have been repeated calls for Party cadres to raise their ideological-political level and deepen their study and knowledge of the classics of Marxism. Speaking specifically about the marginalization of Marxism, Xi Jinping said that:

Some people consider Marxism outdated, that China currently does not follow Marxism; some people consider Marxism to be just ideological “preaching” without rationality and scientific systematization. In practical work, in some fields Marxism has been marginalized, turned into something empty, symbolic. [18]

The strengthening of the guiding role of Marxism is fundamental to ensuring that the Party cadres have a correct view of the trends of social development, understand the fundamental differences between capitalism and socialism, and increase their political, ideological and cultural confidence in the political system of socialism with Chinese characteristics. Only by mastering Marxism can one correctly understand the real goals of the Reform and Opening up policy, and ensure that it continues to move in the right direction. This is the reason why Xi Jinping insists on the need to consolidate the position of Marxism as the guiding ideology of the Reform and Opening up process, as well as of all the political work undertaken by the Communist Party of China. As Xi Jinping stated:

At the present time, the environment, target, scope and methods of ideological propaganda are undergoing great changes, but the main task of ideological and propaganda work has not and cannot change. Ideological and propaganda work must consolidate the guiding position of Marxism in the ideological sphere and consolidate a common ideological basis for the united struggle of the entire Party and people. [19]
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Consolidating the guiding role of Marxism, making it increasingly a real material force guiding the process of building socialism in China, is a mandatory condition for the Party to strengthen its leadership and governance capacity, as well as to continue achieving new successes in the process of building socialism with Chinese characteristics.

The existence of capitalist relations of production in the primary stage of socialism and their effects on the ideological sphere

As we stated at the beginning of the article, the restructuring of the property system in China has given rise to capitalist-type relations of production, so they produce a certain type of ideology that corresponds to the character of these relations. Economist Wu Xuangong defends the idea that currently “there are a large number of economic phenomena and problems in China that did not exist in the past and are contrary to the nature and principles of socialism. Such problems stem from the fact that in present-day China, in addition to the “main contradiction of socialist society, there is also the main contradiction of capitalism.” [20]

It is therefore correct for us to analyze what role the ideology produced by these new capitalist relations of production play in the general set of socialism with Chinese characteristics, and how the Party will deal with this contradiction in the medium and long term. The recognition of the contradictions and problems that have appeared in the country in the last 40 years – and their effects in the realm of ideology – reveals a great concern on the part of Chinese Marxist theorists to seek and find the appropriate explanations to correctly solve the problem. To do so, one must keep in mind the basic principle of Marxism that existence determines consciousness, or the economic base determines the superstructure; therefore, it would not be correct to consider that the increased dangers presented by bourgeois liberalization are works of chance, or that they arise magically. They manifest themselves ultimately as ideological representations of new petty-bourgeois and bourgeois social classes that are bound by multiple ties to capitalist private property, and are also the product of the increased ideological infiltration promoted by Western countries, especially the United States and all its ideological apparatus of political and cultural domination, to the extent that there has been a certain loosening of ideological and class education, as well as an advance in the penetration of foreign capital in the country. As Wu Xuangong stated, “The belief in socialism gradually weakened, so that Marxism was marginalized; the emphasis on self-interest, as well as the pursuit of material interests, became a trend.” [21]

In the 1990s, Deng Xiaoping and many Party cadres considered the idea of explaining the problem of bourgeois liberalization through the analysis of economic relations to be mistaken, because they saw it as an attempt to put a brake on the advance of reforms. Under those conditions it was not wrong to put the problem in those terms. However, today this problem presents itself in a completely different way than it did in the 1980s and 1990s. At that time a new bourgeoisie had not completely formed, and the problem of class struggle manifested itself basically only as a struggle against the remnants of backward ideologies and elements directly linked to imperialism working to sabotage socialist construction. Today capitalist private property has acquired an infinitely more important position and role than it did in the past, which has resulted in a significant change in the economic and ownership structure in China. This has fundamentally changed the way in which the Chinese working masses relate to the means of production, a fact that poses serious risks to the Party and the very cause of socialism in the country. Without taking into account the influence that the relations of production originating in capitalist private property and the pressure they exert for the reforms as a whole to take the direction of bourgeois liberalization, it is impossible to understand the essence of the problem. This is a question that needs to be observed by all those who wish to make a realistic analysis of the current stage of development of socialism in China. As the economist Liu Guoguang warned:

Bourgeois liberalization occurs not only in the political field, but also in the economic field. Privatization, liberalization, and marketization; opposition to public ownership, government intervention, and opposition to socialism, these are all things that are all related to the economic field. It is not enough to oppose bourgeois liberalization, politically. To prevent bourgeois liberalization in the economic field is to prevent the economic field from deteriorating. If the economic field deteriorates (is privatized, turned into capitalism), the political field will also deteriorate. This is a basic common principle of Marxism. [22]

Capitalist private property, even though in the primary stage of socialism it may play a positive role as an accessory element in the development of the socialist economy, ultimately represents the relations of production of a capitalist type, possessing objectives and laws of operation distinct from socialist property in its most varied forms. It is necessary, therefore, to differentiate between what are the positive effects that capitalist private property can create for the development of the productive forces, from what is the ideology it inevitably produces, and the negative effects generated by capitalist relations of production in the most varied domains of social life. It is natural that, as private property increases in importance and influence in the overall economy, its laws start to influence the various levels of Chinese social-economic formation (including influencing and exerting pressure on socialist public property), broadening and expanding its capacity for political, economic and ideological intervention. Therefore, it is not an exaggeration to say that the most serious economic and social problems that exist in China today are the direct result of the intervention of the contradictions produced by the capitalist relations of production.

In view of this inevitability, it is of utmost importance that the Party be very clear that the goal of the Reform and Opening-Up is to perfect the development of the socialist system, to promote the development of the productive forces and gradually consolidate and broaden the influence and extension of the public sector of the economy, the sector that represents the socialist relations of production. The existence of private property in China is justified by the relative backwardness of the level of development of the productive forces. With the advance and development of the productive forces, with the advance of modernization, the duty of the reforms is to adjust the role of the socialist relations of production, in a first moment expanding the influence and the scope of action of the public ownership of the means of production, gradually putting an end to the tendency that has persisted since the beginning of the Reform and Opening policy, namely, the tendency of much faster increase and development of private property and the gradual decrease of the participation of the state and public sector, creating the economic and material conditions to overcome the primary stage of socialism. Obviously, such changes and adjustments will be accompanied by a sharp ideological struggle, which is also one of the forms in which class struggle manifests itself.  Thus, the theories and ideas that seek to present capitalist relations of production as “socialist,” or ideas that say that, in the Chinese case, “private property is not synonymous with capitalism,” are not correct.

The advance towards a more advanced stage of socialist construction is not yet completely on the agenda (the new era of socialism is situated in the scope of the primary stage of socialism), but it is clear that the problems and contradictions that China is facing today are already quite different from the problems that confronted the country in the preceding decades, something recognized by the 19th Congress of the Communist Party of China, which defined that there is a “new principal contradiction” in the new era of socialism. The old definition, which said that the main contradiction in China was the contradiction between the low level of development of the productive forces and the growing demands of the masses, has given way to a new main contradiction, this being the contradiction between unbalanced and inadequate development and the growing needs of the people for a better life.

Many Marxist intellectuals in China consider that, at the present stage, in order to overcome the negative effects of unbalanced development, the most important mission facing the Communist Party is to struggle to effectively build a harmonious society, to combat the negative effects produced by the expansion of private property, and to regain certain positions lost by the public economy in recent years. For such a major operation, it is more than necessary to strengthen ideological work and prepare public opinion. Objectively, this is a problem that places in opposition two projects of society that correspond to distinct worldviews and class interests. The attacks on Marxism and the tendencies that seek to diminish its role – or even deny it – are evidently expressions of the class interests of those social groups and actors who do not want to advance along the path of socialism. Many of these groups use the banner of reform and openness to justify their reactionary ideas and their opposition to the system of socialism with Chinese characteristics, although they often do this in a veiled way.

Ideological work and class struggle

The struggle between bourgeois ideas, with all their effects, and the ideas of the proletariat, represented by Marxism, is a long-lasting struggle, which will exist intensely throughout the period of the primary stage of socialism in China (and even afterwards), a context where China still needs to promote its development in a hegemonically capitalist world. In the primary stage of socialism, even if within a determined scale, class struggle still exists and it obviously exerts its influence in the ideological field. On the need to keep guard and initiative on the ideological front, pointing out that in socialism there is still class struggle, Jiang Zemin, in his speech commemorating the 78th anniversary of the Party’s founding, stated:

Class struggle is no longer the main contradiction in our country, but for a certain period it will continue to exist within a certain limit, moreover under certain conditions it may intensify. This kind of struggle expresses in a concentrated way the opposition of bourgeois liberalization to the four fundamental principles. The core of this struggle is still a problem of political power. This type of struggle is closely connected with the struggle between infiltration and anti-infiltration, subversion and counter-subversion, peaceful evolution and fighting the peaceful evolution that exists between us and hostile forces. [23]

The Communist Party of China’s position on class struggle under socialism has always been very consistent and has not changed much since the beginning of the Reform and Opening-up policy. After criticizing the conception of class struggle that was in force during the period of the “cultural revolution”, the Party started to defend that the class struggle in socialism does not occupy the position of main contradiction, but that it still continues to exist within certain limits. However, some figures, already completely influenced by revisionism and imperialist ideas, allege that the Marxist concept of class struggle is “outdated” and when any mention is made of this basic concept of Marxism, they immediately claim that there is a danger of the resurgence of a new “cultural revolution”. It is important to point out that there is a significant difference between saying that the “class struggle continues to exist within certain limits” and saying that “the class struggle does not exist” or that such a theory would be something “outdated”. As Xi Jinping stated:

We must adhere to the political position of Marxism. The political position of Marxism is primarily a class position, which implements class analysis. Some people say that this idea no longer corresponds to the present era, which is a mistaken point of view. When we say that the class struggle in our country is not the main contradiction, we are not saying that in our country the class struggle within certain limits no longer exists, or that in the international sphere it doesn’t exist either. After the Reform and Opening, our Party’s ideas on this problem have always been quite clear. [24]

The definition, which recognizes that class struggle exists within certain limits, takes into account the concrete reality of China today, a reality where the various contradictions that exist can be resolved within the framework of the socialist system. The Communist Party of China, being the leading force of the state, has in its hands the political, economic and institutional instruments that enable it to adjust, modify and apply policies that help solve the problems and contradictions that exist between the various social classes, including the contradictions between the bourgeoisie and the proletariat. This does not mean that, also in this sphere of work, there are no errors and shortcomings, almost always produced by errors in the sphere of political and ideological work. Without a firm Marxist vision the Party cannot correctly exercise its role as the vanguard of the working masses in China, nor can it firmly defend the interests of these classes.

The fundamental error of the Communist Party of China view’s of class struggle in the period of the “cultural revolution” was precisely that it broadened the scope of class struggle, which in practice contributed to the Party’s treating certain contradictions that existed within the people as if they were antagonistic contradictions. It was a view that did not correspond to the concrete situation of the Chinese society at the time; today the main mistake regarding the theory of class struggle is committed by those who deny its objective existence. The historical experience of the history of the construction of socialism at a world level teaches that class struggle continues to exist in socialism – even though it is not the main contradiction in socialist societies -, therefore, it is not correct to deny or underestimate its action.
​
To deny the existence of class struggle in socialism is as serious an error as trying to artificially broaden its scope. The errors of the “cultural revolution” do not alter the fact that class struggle is an objective reality, and that it continues to exist in the primary stage of socialism. In the Chinese case, given the expansion of capitalist relations of production, it is obvious that class contradictions, including the contradiction between the bourgeoisie and the proletariat, can intensify again. Without recognizing the existence of class struggle, it is impossible to adopt measures to resolve the various social contradictions that exist in Chinese society, which in the medium and long term would result in the amplification of social contradictions, causing contradictions that are currently non-antagonistic in character to quickly become antagonistic contradictions.

Without Marxism and the October Revolution there would be no “Chinese miracle”: a short critique of certain conceptions of the “China’s rise”

The success achieved by the CCP in leading the Chinese nation along the path of socialism has shown the world the vitality and scientificity of Marxist theory. In view of the undeniable successes achieved by the Party, given the intense political and ideological struggle going on, it is to some extent inevitable that abroad certain figures who follow the Chinese development process try to explain it by turning a blind eye to the most important and essential elements that define such process. Quite popular are the ideas that China’s development would be the result produced by a “developmentalist” state in the style of Taiwan, Singapore, or South Korea, or a “civilizational state,” emphasizing here the “civilizational superiority” of the Chinese nation. To give an example of the confusions, Martin Jacques, an author who plays a very important role in investigating the Chinese development process, and openly opposes attempts to launch a new cold war against the Asian country, in an article published by the Global Times, stressed that “it is impossible to understand China in terms of traditional Marxism,” adding that the CCP is “deeply influenced by Confucianism” and that the best way to understand it would be to describe it as a “hybrid between Confucianism and Marxism. Also in the article the author makes a point of highlighting the fact that the CCP is quite different from the former Communist Party of the Soviet Union and that they would have “very little in common.” [25]

We recognize that in all these statements – with the exception that the Communist Party of China and the Communist Party of the Soviet Union have very little in common” – there is a portion of truth, however, we believe it is not unreasonable to say that the author does not address the crux of the problem, which is precisely to analyze how the sinicization of Marxism is the main element that explains the success and rise of China, and that the ideological system of socialism with Chinese characteristics is not an eclectic mix between two philosophies with completely different bases and goals (Marxism and Confucianism). Confucianism, of course, is an important pillar of the millennial traditional Chinese culture, and obviously the Communist Party of China recognizes and incorporates its progressive elements. However, it cannot be denied that throughout its century-old history, the Chinese progressive and revolutionary movement, of which the Communist Party of China is a direct product, has always been very critical of Confucianism, and all this long before the “great proletarian cultural revolution” emerged on the scene of history in the late 1960s. Martin Jacques’ statement that the Communist Party of China is “rooted and deeply influenced by Confucianism” is a “half-truth” turned into an “absolute truth,” for it denies another basic fact that needs to be taken into consideration, namely, that the Communist Party of China was born amidst an intense ideological and political struggle against Confucian ideology and all that it represented and still represents in the developmental history of the Chinese nation. That there are Chinese authors and personalities – including within the Party – who advocate a “new Confucianism,” or who try to explain Chinese success within the framework of “Confucianism,” is another problem, very much related to the ideological confusion generated by years of a relatively uncontrolled development of bourgeois ideas, something we have already discussed in this article.

In fact, the problem of the relationship between traditional Chinese culture and Marxism in China is a topic that deserves a separate article, such is the complexity of the subject. However, this is not to say that for the Communist Party of China, Confucianism and Marxism are two philosophies on the same footing, or, in Martin Jacques’ own words, a “hybrid between Confucianism and Marxism. As Hou Weimin, a member of the Institute of Marxism of the Chinese Academy of Social Scientists, put it:

Since the Reformation and the Opening-up, there have been two types of anti-Marxist thinking. One is the ideological tendency to promote the restoration of feudalism; cultural conservatism and neo-Confucianism belong to this category. This trend of thought is characterized by advocating the “Confucianization of China “and “Confucianization of the Communist Party” under the banner of carrying forward traditional culture by establishing “Confucian colleges” in which Confucian scholars familiar with Confucian classics rule China. Supported by some people abroad, this thinking prevailed for some time. However, its absurdity is obvious if a more proper investigation is made. Its main points have the smell of feudal zombies, so it is hard for it to get a response from the masses. The other thought is the tendency to promote the restoration of capitalism, called bourgeois liberalization by Deng Xiaoping. [26]

About the “few similarities” between the Communist Party of China and the former Communist Party of Soviet Union, it is evident how the way Martin Jacques throws such information into his article misleads the reader into confusion. Which Communist Party of the Soviet Union is he referring to? The Party of Lenin and Stalin or the Party of Khrushchev, Brezhnev and Gorbachev? Superficial statements such as those made by the author open much room for confusion and misinterpretation regarding the history of the Communist Party of China and its evolution over the years. It is necessary to point out that between the Communist Party of China and the former Communist Party of the Soviet Union there is the difference that the former was able to integrate Marxism to the Chinese reality, avoiding committing the same mistakes that the Soviet Party committed in the past, due to its complete abandonment of Marxist theory; the latter, on the other hand, gradually distanced itself from Marxism and capitulated before the ideological offensive promoted by the capitalist countries. However, it is undeniable that the Communist Party of China learned many things from the Soviet experience, so that it is correct to state that there were “great similarities” between both parties, and that the Soviet experience was, from the beginning, a source of inspiration and study for the Chinese communists. As Zhou Xincheng noted:

Initially, we had no experience in how to build socialism. We could only learn from the Soviet Union, which had decades of experience in socialist construction. The basic experience of socialist construction in the Soviet Union was to be studied, including its political adherence to the Communist Party leadership and the dictatorship of the proletariat; economic adherence to the system of public ownership of the means of material production, distribution according to labor, elimination of exploitation and elimination of polarization; ideological adherence to Marxism as a guide, etc. This reflects the basic principles of scientific socialism, its common law, possessing universal value. Therefore, we have always regarded our socialist cause as a continuation of the October Revolution. [27]
Even today many elements in the Chinese political system bear great similarities to the model that was gradually established in the Soviet Union in the late 1920s and early 1930s. The political model that establishes the Communist Party’s direction over the activities of the state and society – a system that today even some bourgeois theorists sympathetic to China tend to defend – is a direct influence of the Soviet-type political system, even if between them there are some differences (e.g. in the Chinese case there is at the same time a system of political consultation that allows the existence of other parties). Although perhaps this is not his intention, in practice Martin Jacques ends up establishing an opposition between two historical phenomena umbilically connected -the Russian and Chinese revolution- diminishing the position of Marxism-Leninism and concealing the direct link that the process of building socialism with Chinese characteristics has with the struggle of the international proletariat and also with the Russian revolution itself, in the name of the idea that the Communist Party of China “is different from all the other parties in the world.

Still on the relationship between socialism with Chinese characteristics and Soviet socialism, it is interesting to note that Xi Jinping, when analyzing the various stages of the development of the history of socialist thought and movement, divides it into six stages, citing precisely Lenin’s experience and his leadership in the October Revolution as an integral part of these stages, as well as the gradual formation of the Soviet system already in the Stalin period (respectively, the third and fourth stage of the development of the history of socialism). In other words, Xi Jinping highlights as an integral part of the development of socialist thought – in which, obviously, socialism with Chinese characteristics is included – the experience of the construction of socialism in Russia, from the victory of the October Revolution to the formation of the Soviet system with the foundation and construction of socialism in the Soviet Union, an experience led by the Communist Party of the Soviet Union.



​​References

[1] Deng Xiaoping 邓小平. “Gao zichan jieji ziyou hua jiushi zou ziben zhuyi daolu 搞资产阶级自由化就是走资本主义道路 [To engage in bourgeois liberalization is to take the path of capitalism],” Dengxiaoping wenxuan, v.3, Renmin chuban she 人民出版社,2008, pg.123.

[2] Communist Party of China. Resolution on Certain Historical Issues in the History of Our Party since the Founding of the People’s Republic of China – Adopted by the Sixth Plenary Session of the Eleventh Central Committee of the Communist Party of China, 1981. Accessed at: https://www.marxists.org/portugues/tematica/1981/06/27.html

[3] Deng Xiaoping 邓小平. “Women youxinxin ba zhongguo de shijian hao chengji 我们有信心把中国的事情做得更好 [We are confident that we can handle China’s affairs well],” Dengxiaoping wenxuan, Renmin chubanshe 人民出版社,2008,pg.327

[4] Mao Tsetung. On the Correct Handling of Contradictions Among the People: Selected Readings from the Works of Mao Tsetung, Foreign Language Press, 1971, pg.

[5] Jiang Zemin 江泽民. “Zai jinian zhongguo gongchandang chengli qishiba zhounian zuotan hui shang de jianghua 在纪念中国共产党成立七十八周年座谈会上的讲话 [Speech commemorating the 78th anniversary of the founding of the Communist Party of China],” 1997. Accessed at: http://www.peopledaily.com.cn/item/ldhd/Jiangzm/1999/jianghua/jh0007.html

[6] Xi Jinping 习近平. “Ba xuanchuan sixiang gongzuo zuo de geng hao 把宣传思想工作做得更好 [Do ideological and propaganda work better].” Lun jianchi dang yiqie gongzuo de lingdao 论坚持党一切工作的领导, Zhongyang wenxian chuban she 中央文献出版社, 2019, pg. 23.

[7] Zhou Xincheng 周新城. “Guandu zhongguo thesis shehui zhuyi de ruogan lilun wenti 关于中国特色社会主义的若干理论问题 [On some theoretical problems of socialism with Chinese characteristics],” Jingji ribao chubanshe 经济日报出版社,2015, pg. 357.

[8] Wang Qishan 王崎上. “Kaiqi xin shidai, ta shang xin zhengcheng 开启新时代,踏上新征程 [Starting a new era and embarking on a new journey],” Renmin Ribao 人民日报, 2017, November 7, 2017. Acessado em: http://www.xinhuanet.com//2017-11/07/c_1121915946.htm

[9] Chen Yun 陈云. “Bixu jiuzheng hushi jingshen wenming jianshe de xianxiang 必须纠正忽视精神文明建设的现象 [We should correct the tendency to neglect the establishment of spiritual civilization],” Chenyun Wenxuan 陈云文选, v.3, Renmin chubanshe, 2015, pg. 354.

[10] David M. Kotz 大卫-科茨. “Sulian jieti yuanyin shi jingying jituan zhuzhang ziben zhuyi 苏联解体原因是精英集团主张资本主义 [The reason for the collapse of the Soviet Union was that elitist groups advocated capitalism].” Zhongguo jingji wang 中国经济网, 2013. Accessed at: http://www.wyzxwk.com/Article/lishi/2013/09/306710.html

[11] Xi Jinping 习近平. “Guanyu jianchi he fazhan zhongguo thesis shehui zhuyi de ji ge wenti 关于坚持和发展中国特色社会主义的几个问题 [Some questions on maintaining and developing socialism with Chinese characteristics],” Qiushi 求实, n.7, 2009. Accessed at: http://www.qstheory.cn/dukan/qs/2019-03/31/c_1124302776.htm

[12] Mao Zedong. Speech At The Tenth Plenum Of The Eighth Central Committee, 1962. Accessed at: https://www.marxists.org/reference/archive/mao/selected-works/volume-8/mswv8_63.htm

[13] Liang Zhu 梁柱. “Mozedong fanfa sixiang yong bu tuishai 毛泽东反腐思想永不褪色 [Mao Zedong’s thoughts on corruption will never dissipate],” Zhongguo shehui kexue bao 中国社会科学报, 2014. Acessado em: http://dangshi.people.com.cn/n/2014/0116/c85037-24142270.html

[14] Deng Xiaoping 邓小平. “Jianchi shehui zhuyi, fangzhi heping yanbian 坚持社会主义,防止和平演变 [Adhering to socialism and preventing peaceful evolution],” Dengxiaoping wenxuan 邓小平文选, v.3, Renmin chubanshe 人民出版社, 2008, pg. 344.

[15] Liu Guoguang 刘国光. “Zhongguo shehuizhuyi zhengzhi jingjixue de ruogan wenti 中国社会主义政治经济学的若干问题 [Some problems of the political economy of socialism with Chinese characteristics],” Jinan chubanshe 济南出版社, 2017, pg. 33.

[16] Gong Yun 龚云. “Zai lishi xuwu zhuyi zhong jianchi lishi weiwu zhuyi 在历史虚无主义中坚持历史唯物主义 [Criticizing historical nihilism by persisting in historical materialism].” Accessed at: http://www.wyzxwk.com/Article/yulun/2016/07/367869.html

[17] Xi Jinping 习近平. “Zai dang shu xuexi jiaoyu dongyuan dahui shang de jianghua 在党史学习教育动员大会上的讲话 [Speech at the mobilization and study conference on Party history],” 2021. Acessado em: https://www.ccps.gov.cn/xtt/202103/t20210331_148208.shtml

[18] Xi Jinping 习近平. “Zai zhexue shehui kexue gongzuo zuotan zhong de sikao 在哲学社会科学工作座谈会上的讲话 [Speech at the philosophy and social science workers seminar],” 2016. Acessado em: http://www.xinhuanet.com/politics/2016-05/18/c_1118891128_2.htm

[19] Xi Jinping 习近平. “Ba xuanchuan sixiang gongzuo zuo de geng hao 把宣传思想工作做得更好 [Do ideological and propaganda work better].” Lun jianchi dang yiqie gongzuo de lingdao 论坚持党一切工作的领导, Zhongyang wenxian chuban she 中央文献出版社, 2019, pg. 23.

[20] Wu Xuangong 吴宣恭. “Yunyong lishi weiwuzhuyi jianshe zhongguo thesis shehui zhuyi zhengzhi jingji xue 运用历史唯物主义建设中国特色社会主义政治经济学 [Use historical materialism to build the political economy of socialism with Chinese characteristics].” Fujian shifan daxue xuebao (zhexue shehui kexue ban) 福建师范大学学报 ( 哲学社会科学版), 2017.

[21] Ibid.

[22] Liu Guoguang 刘国光. “Zhongguo shehuizhuyi zhengzhi jingjixue de ruogan wenti 中国社会主义政治经济学的若干问题 [Some problems of the political economy of socialism with Chinese characteristics],” Jinan chubanshe 济南出版社, 2017, pg. 33.

[23] Jiang Zemin 江泽民. “Jiāngzémín zài qìngzhù jiàndǎng qishi zhōunián dàhuì shàng de jiǎnghuà 江泽民在庆祝建党70周年大会上的讲话 [Speech at the celebration of the 70th anniversary of the founding of the party],” 1991. Accessed at: http://www.qunzh.com/pub/jsqzw/xxzt/jd95zn/zyls/201606/t20160601_20990.html

[24] Speech by Xi Jinping at the School of the Central Committee of the Communist Party of China. February 17, 2014. Quoted in Zhou Xincheng 周新城,”Jianchi jiqiao jiben yuanli fenxi shehui wenti坚持运用马克思主义基本原理分析社会经济问题 [Adhere in using the principles of Marxism in investigating economic and social problems].” Jingji ribao chuban she 经济日报出版社, 2016, pg. 228 .

[25] Martin Jacques. Why there has been an overwhelming failure to understand CPC in West, Global Times, April 6, 2021. Accessed at: https://www.globaltimes.cn/page/202104/1220314.shtml

[26] Hou Weimin 侯为民. “Pipan yu chuangxin- Zhou xincheng jiaoshou jingji sixiang sumiao 批判与创新–周新城教授经济思想素描 [Critique and Innovation: an outline of Professor Zhou Xincheng’s economic thought]”,Guanli xue kan 管理学刊, 2014.
​
 [27] Zhou Xincheng 周新城. “Jianguo qishi nian shi qingzhu shehui zhuyi lishi fazhan, jinian zhonghua renmin gongheguo chengli qishi zhounián 建国70年是庆祝社会主义历史发展, 纪念中华人民共和国成立70周年. Accessed at: http://www.kunlunce.com/llyj/fl1/2019-05-17/133451.html

Author

​Gabriel Martinez


This article was republished from Friends of Socialist China. 

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