Showing posts with label Class Inequality in China. Show all posts
Showing posts with label Class Inequality in China. Show all posts

Friday, June 19, 2026

SPGB Snippets: The Chinese Dream (2026)

From the Socialist Party of Great Britain website

June 17, 2026
Workers in China are feeling jaded nowadays. After Tiananmen Square, Deng Xiaoping stopped pretending China was ‘communist’ and pulled the capitalist stops out. In 1980 home ownership was 20%. Today it’s 96%. So a success, right? But wait. 10% own over 70% of wealth (Economist – paywall).

The ‘entrepreneurial’ generation were ‘faced with open roads, you could go far even on a three-wheeled cart’. Now ‘the roads are jammed, and… the [wealthy heirs] can take helicopters’. Seeing nil prospects for success, today’s young people are ‘lying flat’ instead. ‘They think that effort is no longer rewarded… and that the keys to success are connections and being born rich.’

Welcome to our world. Capitalism is pretty dismal for workers, and utopia is only for the rich.

Friday, February 6, 2026

Tiny Tips (2026)

The Tiny Tips column from the February 2026 issue of the Socialist Standard

In almost all regions of the world, the top 1% of the population is richer than the combined 90%. Wealth inequality increases further with each passing day, mostly due to the lack of political will to stop it.


In China, inequality remains high… The top 10% of earners capture about 43% of national income, while the bottom 50% receive just 14%. Wealth disparities are particularly large, with the richest 10% holding nearly 68% of total wealth and the top 1% about 30%. 


Nearly half of Kenyans live in extreme poverty, i.e., on less than KES 130 [£0.75] per day. Yet a few have amassed enormous wealth. The richest 125 Kenyans have more wealth than more than three-quarters of Kenyans, about 43 million people. 


We celebrate the ‘recovery’ of fish populations that are stabilized at 5% or 10% of their historical population, mistaking the management of ruins for conservation. To understand the magnitude of what has been stolen, we must look back before the industrial age. In the 17th century, the ocean was a different planet. When Christopher Columbus sailed through the Caribbean in the late 15th century, he described the seas near Cuba as being ‘thick with turtles’, so numerous that it seemed his ships would run aground on them… in numbers estimated between 33 and 39 million adults in the Caribbean alone. They were a biological dominance that defined the seascape. Today, those populations are a shadow of the ‘mother sea’ that once existed. This report is an autopsy of the decline. It is an investigation into the specific species that the fishing industry has sacrificed on the altar of commerce. 


As both the International Campaign to Ban Landmines (ICBL) monitor and Reuters noted, Poland is among multiple state parties in the process of ditching the Mine Ban Treaty. Citing the Polish Ministry of Foreign Affairs, the news agency reported that “antipersonnel mine production could begin once the treaty’s six month withdrawal period is completed on February 20, 2026”. 


Greenpeace is a strong example, having emerged from ecological protest movements in the 1970s and 1980s, but having eased into largely cooperating with capitalist corporations and governments over time and giving legitimacy to their propaganda about individual lifestyle choices being the way to solve climate change.


The Rupert Murdoch-owned tabloid, which has previously slammed vaccine skeptic Kennedy as a ‘paranoid kook’ whose ‘tinfoil hat is blocking out all sense’, tore into the Trump Cabinet member for his war on what it called ‘one of the biggest public health wins of the last century: the widespread use of disease-eradicating vaccines’. 


Therefore, we do not offer any support to wars waged by any capitalist state or any faction aimed at creating or strengthening a new state, whether aggressor or aggressed, whether or not they describe themselves as ‘socialist’ or ‘democratic’. 


(These links are provided for information and don’t necessarily represent our point of view.)

Tuesday, September 9, 2025

Moving Around (2025)

Book Review from the September 2025 issue of the Socialist Standard

Private Revolutions: Coming of Age in a New China. By Yuan Yang. Bloomsbury £10.99.

The author was born in China but moved to the UK with her parents. She worked as a journalist for the Financial Times in London and Shanghai, and is now a Labour MP. Here she looks at the lives of four women born in China in the 1980s and 90s, their struggles with traditional ideas and the changes in Chinese society. In this review we will focus on the general points made, rather than discussing the individual cases.

One important issue is the hukou system, a household registration system related to a person’s place of birth. This enables them to access local services, such as education and healthcare, but without a local hukou they can face real problems. They may have difficulty getting their children into a suitable middle school, but can try relying on ‘friends of friends’ to influence headteachers to relax the rules. This system is presumably intended as a way of controlling workers, especially, but not only, those who move from the countryside to cities in search of work. Children are often sent to live with their grandparents and so gain access to a school that way.

The possibility of factory work did lead to many people migrating from rural areas, but the numbers often exceeded the jobs available and working hours could be very long. One factory was seen as improving conditions by capping overtime to 9pm and guaranteeing one day off a week. Many migrant workers preferred short-term contracts so they could avoid abusive bosses. But, partly because of Covid, the job market contracted, and by the middle of 2020 one-tenth of urban residents had lost their jobs. Yang says that southern China had industrialised and then de-industrialised within four decades.

The most common problems workers faced were ‘too much overtime, unpaid wages, workplace injuries and being without a labour contract’. There were no effective trade unions, but there were community-based ‘labour NGOs’, providing legal assistance and so on. But such NGOs could find themselves evicted from their offices, and activists were sometimes arrested; some responded by going abroad to study.

For a while, the online forum Utopia (sometimes seen as part of the Chinese ‘New Left’) supported the system under Mao Zedong, before the market reforms of Deng Xiaoping, a time when the welfare system was allegedly better. In 2018 fifty students who had supported workers in an electronics factory who wished to organise their own union were arrested: ‘China’s biggest student crackdown since Tiananmen Square’.

The book provides both general and particular views of what one document on social media in 2012 quoted here described as ‘China’s path towards globalised capitalism’.

Perhaps publishers these days find it hard to provide helpful things like a table of contents.
Paul Bennett

Friday, July 31, 2020

Voice From The Back: “Modern” Britain (2010)

The Voice From The Back column from the July 2010 issue of the Socialist Standard

“Modern” Britain

There is a notion about that because in Britain we have a new political situation of parliamentary sharing that something has changed about the class division of society. It is just not true. “At St. James’s club in London, a new toast is overheard: ‘To the Nineteen.’ This refers, as you no doubt spotted at once, to the 19 Old Etonians who have become prime ministers. Jolly good.” (Sunday Times, 16 May) “Almost four-fifths of the new cabinet are millionaires, according to an analysis by The Sunday Times. As the government prepares to wield the axe on public spending, research reveals that 18 of the 23 full-time cabinet members have seven-figure fortunes, collectively worth about £50 million.” (Sunday Times, 23 May) So modern Britain looks a lot like old Britain. The people who produce wealth – the working class are exploited by the owning class. Wake up fellow workers we need a new society.


The Chasm Of Class

At a time in the USA when many members of the working class find themselves unemployed and their homes re-possessed it is worthwhile looking at how the American capitalist class are dealing with the economic downturn. Time-share mogul David Siegel and his former beauty queen wife Jacqueline have had to sell their Florida mansion for a mere $50 million. The 30 bedroom house and estate, named and modelled on the palace of Versailles in France, includes a boat house, a ballroom, an Olympic-size pool, a theatre and a baseball field. “The 23-bathroom house may appeal to a buyer so wealthy they do not even move in, said local estate agent Kelly Price. ‘Versailles will probably be a house that will appeal to the uber-wealthy who don’t even think about the issue of money,’ she added. ‘It might be a second or third home. For all we know, it could be a seventh or eighth home.'” (Metro,27 May) Useful productive members of the working class are homeless while the useless parasite class have multiple mansions – that is capitalism for you.


Nice Suicides

“Steve Jobs has said the Chinese iPhone factory where 10 workers have killed themselves this year is actually ‘pretty nice’. Speaking at the All Things Digital conference in California, the Apple CEO also brushed aside questions about his relationship with Google … Taiwanese electronics manufacturer Foxconn makes Dell, Nokia and Apple products at its factory in Shenzhen, China. As reported by The First Post, the latest suicide came last week, when a 23-year-old worker jumped to his death from a building roof. Jobs denied Foxconn ran a sweatshop and told the conference that Apple was working with the company to get to the bottom of why so many people were killing themselves. ‘You go in this place and it’s a factory but, my gosh, they’ve got restaurants and movie theatres and hospitals and swimming pools. For a factory, it’s pretty nice,’ said Jobs.” (First Post, 2 June) What millionaire Mr Jobs does not mention is that the workforce stand for a 12 hour work day under constant camera surveillance for the princely sum of £90 per month and live in factory-owned dormitories. The factory is considering improving conditions by introducing “soothing” music, dancing instructors and a suicide hotline! The mindless repetitious factory 12 hour slog may seem “pretty nice” to Mr Jobs as he counts the millions of dollars extracted from the exploitation of these Chinese workers, but at least one worker last week decided to end his “pretty nice” servitude.


Class Divide In China

The awful gap between the rich and the poor in modern China was illustrated by two recent news items. A series of industrial disputes leading to strikes has broken out in China. “They began at Honda’s car plant in the south near Hong Kong. Since then, disputes, demonstrations and picketing have broken out at electronic firms, vehicle parts makers and other factories as far away as Shanghai. Even the 8,000 workers who make the balls used in the Fifa world cup in South Africa are reported to have gone on strike after discovering that one football is sold for the equivalent of a fortnight’s salary.” (Sunday Times, 13 June) According to the chief executive of Rolls Royce Motor Cars “China is now our second largest market, with about 20 per cent of sales, and is doing very, very well.” …. “The Phantom model starts at £235,000 and the Ghost, the new baby Rolls launched this year, at £165,000. The Phantom is about presence, about making a statement. That is why it is so popular in China.” (Times, 7 June) This immense conspicuous consumption is only possible out of the sweated labour of the Chinese working class toiling for a fortnight for the pittance of the price of a football.



Wednesday, December 4, 2019

Tiny Tips (2011)

The Tiny Tips column from the November 2011 issue of the Socialist Standard

Jenny Nicholson is tired of hearing how the poor are poor because they make poor choices. Let’s see what kind of choices you make when it’s your turn to be flattened by the economy. That’s the idea behind Spent, an online game Nicholson created to challenge popular misconceptions about poverty. Play it at www.playspent.org.

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Some children in the North [of China] live ferally: they are known as kotjebi, or “fluttering swallows”, and roam in packs. When they cannot steal in the markets, they eat dead dogs and rotten food (reportedly chewing toothpaste in the belief that it prevents food poisoning).

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A typical prize for a children’s contest might be a backpack, a lunchbox or maybe some toys. But not in Somalia. Over the weekend, a Somali radio station run by the Shabab, the most powerful Islamist  militant group in the war-ravaged country, held an awards ceremony to honor children who were experts at Shabab trivia and at reciting the Koran . The prizes? Fully automatic assault rifles and live hand grenades.
[LINK]

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What makes individual stockbrokers blow billions in financial markets with criminal trading schemes? According to a new study conducted at a Swiss university, it may be because share traders behave  more recklessly and are more manipulative than psychopaths:
[LINK]

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A Saudi Arabian ministry statement carried by the state news agency, SPA, stated that Abdul Hamid al-Fakki “practiced witchcraft and sorcery,” which are illegal under Saudi Arabia’s Islamic sharia law. Al-Fakki was beheaded in the western city of Medina on Monday, the interior ministry announced:

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Mr. Daisey’s trip to Shenzhen, China, where he posed as a wealthy businessman to infiltrate factories where Apple products and other electronics are made. He says he witnessed inhumane conditions and interviewed workers outside of factories who said they were as young as 12.
   ‘What was shocking to me was the level of dehumanization built into the systems that have been put into place by American corporations in collusion with suppliers…… There’s a hunger in very controlling companies like Apple to create planned obsolescences sooner rather than later, so it will become more and more difficult to stay functional’:
[LINK]

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Eight in 10 British workers are overweight or living with long-term illnesses that limit their productivity, according to early findings of a 25-year study of people’s wellbeing:
[LINK]

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Tobacco companies knew that cigarettes contained a radioactive substance called polonium-210, but hid that knowledge from the public for over four decades, a new study of historical documents revealed:
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Sunday, November 24, 2019

Eyewitness: A Socialist in China (1974)

From the November 1974 issue of the Socialist Standard

Ten months in China, October to August. Peking Language Institute, study Chinese, play table-tennis, holiday to Shanghai, visits to factories, May Day celebrations, Peking University, meet Heath, trip to Sian, back to Britain.

Thus the story of my stay in China. Among the first students to go to China since the Cultural Revolution, we were able to get closer to the Chinese people than other visitors, but even so a Wall (little rather than Great) remained. We could get beyond the pat phrases and slogans, but not to the extent that we wished.

No doubt a fair amount of this lack of familiarity is because visitors to China (the Chinese prefer to call one a “foreign friend” rather than a “foreigner”; or, if they are being polite, a “foreign guest”) are a race apart, receiving different treatment from that accorded to the Chinese themselves. It works two ways. To be served first in shops and given seats on crowded buses is all very well (and a “privilege” that it is impossible to refuse), but it does not make up for total exclusion from Chinese political processes and being unable to buy local newspapers and reference news-sheets.

In Hangchow, a friend and I were reading some wall-posters about local problems when a man came up, asked us which country we were from, and then insisted very firmly that we move on, saying, “Big-character posters are an internal affair of the Chinese.” The sometimes hysterical campaign against Antonioni’s film on China made the atmosphere particularly uncomfortable for anyone who walked around the streets with a camera. To walk about in Peking was to attract the attention of passers-by, while in some of the smaller towns rarely visited by tourists, where we were allowed twenty minutes or so to look round the shops, a crowd assembled to stare open-mouthed at us as if we were inhabitants of another planet — which perhaps we were. Chinese claims to be “internationalist” ring a little hollow after exposure to travel restrictions and to the intensely nationalistic cast of so much of Chinese propaganda.

Connected with treatment of “foreigners” was one of my deepest disappointments — the running of the Language Institute, where the “leadership” acted in a very highhanded, undemocratic and intolerant manner. Any action which they objected to was met by rejoinders that we must “obey the rules” and “respect Chinese customs” (which could clearly be interpreted to mean almost anything). Although we had been promised one when we first arrived, they refused to provide any kind of common room, or even a place for students to meet and discuss problems. They also refused to open up more than a small part of the Institute’s library — and would not believe that overseas students in Britain had the same library facilities as British students. They were quite happy to meet students’ “reasonable requests”, but reserved for themselves the right to decide what was “reasonable”.

I was therefore extremely glad to move at the beginning of May to the nearby Peking University to follow more specialist courses in Chinese history and literature. Here, in an environment enlivened by the presence of Korean and Vietnamese students of English, we were treated as adults rather than children, and covered much interesting ground. Language teaching at the Institute had been marred by an unwillingness to go far outside the texts studied, and with the emphasis merely on increasing one’s passive vocabulary, many students become bored, lazy and very disillusioned.

Fortunately there was more to life than study. For a start there was Peking itself, a city with centuries of history and many fascinating places. We went on coach trips to the Great Wall (which is truly unbelievable), the Ming Tombs, and other tourist spots. We could wander round the city’s parks and streets, searching out good restaurants and bookshops. Restaurants, by the way, provided one of the few chances to talk with Chinese from outside the academic world. Two holidays, to Shanghai, Hangchow and Nanking in winter, and to Sian, Yenan and Tachai in summer, included visits to beauty spots and also to factories and communes — these we visited in Peking too, and this enabled us to form in at least some detail a picture of how the Chinese live and work.

An average visit to a factory was organized as follows. First, an introduction to the factory, usually with statistics of size and production, by a member of its Revolutionary Committee. Then a more or less conducted tour of the workshops, followed by a session of questions and answers. Too often it was impossible to elicit satisfactory replies, but information on wage rates was easy to come by. Average wages, I should say, are less than £15 a month, while apprentices will earn half of this amount and technicians and highly-skilled craftsmen may earn three times as much. Wage levels should always be borne in mind when one reads correct, but misleading, statements about the cost of living in China — such as that a reasonable meal, including beer, can be had for 15p, or that a warm padded jacket costs £3. It is also worth noting that many different qualities of goods are available, and naturally enough they are on sale at different prices. So in China, as elsewhere under capitalism, one gets what one pays for, whether it is a matter of food, clothes or table-tennis bats.

Trade unions, which disappeared in the late ’sixties because they were found to be following the policies of the disgraced Head of State Liu Shao-chi’i, have been reconstructed in the last couple of years. But they bear little resemblance to trade unions as existing in the West, their main functions being to help solve production problems and organize the study of “Marxism-Leninism-Mao Tsetung thought”. Thus, like other organizations such as the so-called democratic parties (which still exist but play a very minor role) they are mainly “transmission belts” by means of which Party directives and policies reach various sections of the Chinese working class.

In many factories one sees schoolchildren, perhaps only thirteen or fourteen years of age, working, for many if not all of them have to spend one month a year in a local workshop. At a knitwear factory in Peking, I asked if they received wages. The answer was no, and then another cadre interrupted to say, “But they don’t work on the night shift” !

After visits to a number of factories and conversations with Chinese students and others, the conclusion is that in China the worker is an instrument of production, a mere producer of wealth. A man will decide whether a woman is a suitable marriage partner largely on the grounds of how well she works at her job. A Chinese student told us that it is all right to have a “good time” on a Saturday night, but not on other evenings since this may interfere with production.

But only a minority of the Chinese live in cities or work in factories. Perhaps 80 per cent. of the population live in the countryside, in small villages organized into the people’s communes, which are themselves divided into brigades (normally of village size) and production teams (with several tens of families in each one). The economic status of commune members requires clarification. The Chinese call them “peasants”, but they are not peasants in the sense of agriculturalists who produce primarily for their own consumption on a family farm (owned or rented). For a start, the basic unit of production is the production team, not the single family; secondly, most land is “owned” by the collective not by the individual family; thirdly, their income is a mixture of cash and payment in kind. It is true that many commune members, besides working on collective land, also have their own private plots, where they produce for their own consumption or for private sale. But the importance of such plots varies considerably — for instance, in Hangchow we visited a brigade whose main crop was a particularly famous brand of tea, much of which is exported. Private plots and payment in kind were of minimal importance here, since it is after all difficult to live on tea. Income in communes is mainly allocated on the basis of work-points — a form of piece-work which means that commune members are more correctly described as rural proletarians.

On the communes women are not paid on an equal footing with men. Indeed the model brigade of Tachai were quite open about, and even proud of, the system they employ: for a full day’s work a man can earn up to a maximum of eleven work-points, but the most a woman can earn is eight and a half points. We were given two reasons for this. Firstly, women are physically weaker than men, and secondly, they work shorter hours since, for instance, they have to go home early in order to do the cooking!

One of the most striking discoveries after visiting several communes is the differing standards of living displayed. The tea-producing brigade mentioned above, with a crop which is dependable and much in demand, is comparatively well-off, its members living in solid two-storey houses built by themselves at a cost of about seven hundred pounds; while the inhabitants of the arid and mountainous Tachai have just one small room per family. This stark dependence on local soil conditions is chiefly attributable to the much-acclaimed policy of “keeping the initiative in our own hands”, which effectively maintains the distinction between poorer and richer areas. Chinese boasts as to their lack of reliance on outside help — whether at the local or national level — should not be taken at face value. At the Red Flag Canal in Lin Hsien, we went to a hydro-electric power station. This was held up to us as a fine example of “independence and self-reliance”, but inside was equipment from Austria, Switzerland and Czechoslovakia . . .

But inequality is apparent not merely between different areas, but among different people at the same place, say Peking. Quite apart from the wage differentials mentioned earlier, there are also startlingly different life-styles observable. It is quite common to sec people riding bikes that are literally falling apart with rust, or wearing clothes that have been patched again, while university professors wear smart suits and army officers ride around in big cars. As to the life led by the top rulers, one learns nothing.

When we arrived in China, there was a campaign taking place to “criticise Lin Piao and rectify one’s style of work”. It did not seem that this was being pursued very energetically, and so it was a great surprise when the movement against both Lin Piao and Confucius erupted to dominate newspaper front-pages and demand a great deal of time from the Chinese students. On the face of it, it is pretty unlikely — though not entirely impossible — that Lin, the former successor-designate to Mao Tse-tung who allegedly perished in 1971 after an unsuccessful attempt to kill the Chairman, was in reality a secret follower of the philosopher who lived and died in China two and a half millennia ago. If it is true, it speaks volumes for the lack of Socialist consciousness within the Chinese Communist Party. But the Chinese workers denounced Lin Piao on the sole basis of what the government had said about his deeds and beliefs. It would of course be naive to expect the Chinese authorities actually to publish the plans for Lin’s coup or extracts from his diary, but without such hard evidence it is not possible to accept the official account of the heresies claimed for him, which is what the Chinese appeared to do.

The above account is intended to be a straightforward description of some aspects of China today as seen through the eyes of a Socialist. No doubt supporters of China will object that a lot has been left unsaid, and too much emphasis placed on negative aspects. What, they will say, of the claimed achievements of new China — no homeless, no unemployed, the conquest of famine, education for all, health services where there were none before, engineering feats such as the Nanking Bridge ?

One could not deny that life in China now is far more secure than it was in 1949 after decades of civil war and Japanese invasion. Since then there have been twenty-five years of internal peace, ten years of aid from Russia, the opportunity to buy advanced technology from other countries — and a great deal of toil and suffering on the part of the Chinese working class. But while China can build bridges and huge gymnasia, negotiate to buy Concorde, and explode atomic bombs, it cannot provide decent housing and sanitary facilities for more than a tiny percentage of its population or allow its workers more than sixty non-working days in the whole year. And the basic question, surely, is how the wealth of China is produced, and the answer is that it is produced by exploited workers for accumulation and profit, just as in any other capitalist country.
Paul Bennett

Tuesday, March 26, 2019

Small wall of China (1979)

Democracy Wall
From the June 1979 issue of the Socialist Standard

Since the downfall of the “Gang of Four”, the Chinese ruling class have embarked on a policy of rapid modernisation and industrialisation. The extent of their plans can be seen in some details from the Ten-Year Plan for 1976-85, which was formulated by the State Council in 1975 and endorsed by the National People’s Congress in March 1978. It is envisaged that between 1978 and 1985 the gross investment budgeted for capital construction will be equal to that for the entire period 1950-78. By 1985 it is intended that ten new iron and steel complexes, ten oil and gas fields and thirty power stations, among many other undertakings, will have been constructed. The gross value of agricultural output is supposed to increase by four to five per cent per annum, and of industrial output by over ten per cent (figures taken from Chairman Hua Guofeng’s speech to the Fifth National People's Congress).

To achieve all this will require vast resources, which will come from two sources: loans to the order of hundreds of millions of pounds from overseas banks to finance purchases of goods and technology, and the unpaid labour of the working class. The amount of the latter is to be increased by urging China’s workers to work harder and stifle any complaints, largely by dangling the carrot of piece-wages before them (see the Socialist Standard, December 1978). The first method seems to have been pretty successful, since banks are only too keen to lend money when they know their customer won’t do a moonlight flit and is likely to return cap in hand again and again. But the second method has run into problems.

At the same time as calling on the workers to put their backs into it, and with a sense of timing such as to make Jim Callaghan look like a political genius, it was announced that members of the so-called “national bourgeoisie”; the “patriotic industrialists and businessmen”, would have money and property which was confiscated during the Cultural Revolution returned to them. This is said to be because such people are experienced in the ways of the world (the capitalist world) and can help in China’s dealings with other countries. It is also pointed out that the earlier confiscations were illegal, and indeed according to the constitution “The state protects the right of citizens to own lawfully-earned income”. The beneficiaries of the repayments are former private capitalists whose property was nationalised in the 1950s in return for interest-bearing government bonds. Now they are having cash and personal possessions returned to them. The existence of privilege and inequality is thus flaunted and endorsed by the government, while the other side of the coin is seen in the recent ruling that families with more than two children will suffer cuts in their income. For instance, workers who produce a third child will have five per cent of their wages deducted for welfare expenses a kind of reverse family allowance which not even an English Tory would dare to propose.

Cynical Treatment
There are signs, however, that not all of China’s workers are prepared to accept this cynical treatment. For over the last few months there has been a remarkable upsurge of dissident activity, much of it centred on the “Democracy Wall” along Peking’s main street. It seems possible to discern three main tendencies within this activity. One, the most active in the production of wall posters, is the demand for “human rights”, specifically for freedom of speech. One poster asked President Carter to turn his attention to the state of human rights in China, on the grounds that China’s record in this field does not compare favourably with other countries.

There have also been at least two demonstrations for food and the “right to work”. One, in mid-January, was held outside Zhongnanhai, the compound in central Peking where the top rulers live. A fortnight later, as thirty thousand officials gathered at the Great Mall of the People to celebrate the Chinese New Year, a hundred and fifty peasants stood outside with banners proclaiming “We want to eat” and “We want clothes”; the demonstrators were dispersed, and an organiser arrested.

Lastly, there have been protests by young people against their being assigned to jobs in distant cities or deep in the countryside. This practice (which obviates urban unemployment) has long been unpopular among those affected by it, and Chinese newspapers have in the past given prominence to urban youths living in the countryside who have married local commune-members and decided to settle there permanently. In early February, Shanghai youths staged sit-ins along railway tracks and protested outside the offices of the city’s employment bureau. Others have returned without authorisation to their home cities, where they have turned to begging and theft in order to live without the ration coupons necessary for the purchase of rice and cotton clothing.

Infringement
The government’s reaction to these protests has been typical of dictatorships everywhere. Critics have been arrested, the area available for wall posters has been progressively reduced, and anti-government posters have been speedily removed. In Shanghai new by-laws were passed restricting where posters could be placed; demonstrators protested that this was an infringement of their democratic rights, only to be told that the purpose was simply to reduce congestion in the streets. Nevertheless, the fact that protest still continues strongly suggests that the government feels itself unable to stamp down on it completely—presumably because the dissidents, however few they are in number, are too strong for this to be successful.

It is not reported that any of the protestors have appealed to the Chinese Constitution (adopted at the Congress mentioned earlier) in defence of their freedom to protest, though they may well have. Article 45 states: “Citizens enjoy freedom of speech, correspondence, the press, assembly, association, procession, demonstration and the freedom to strike”. Mind you, as well as enjoying such marvellous freedoms, citizens also have certain duties, for instance they “must support the leadership of the Communist Party of China” (Article 56).

The provisions of Article 45 are of course a complete dead letter. There are no such freedoms in China for any but the tiny minority of the country’s ruling class: the newspapers and other media are entirely government-controlled, and the arrests of demonstrators show that the other freedoms mentioned are inapplicable in practice. Strikes do occur, but not often, and in any case can be declared unconstitutional under Article 8, according to which no person may “disrupt the economic order of society”. The Chinese case shows clearly the limitations of paper rights and freedoms as enshrined in constitutions.

This does not however mean that the de facto ability to organise and discuss under capitalism is of no value to the working class. Without political democracy in this sense there is no possibility of establishing socialism. The events in China are evidence that at least some workers there have come to realise the necessity of achieving such freedoms and are prepared to run the considerable risks involved in acting on that realisation. It is tragic that their protests should be mixed up with nonsense about “human rights” and appeals to leaders of other capitalist countries. But at least some Chinese workers are well aware of the undemocratic nature of the society they live in, and others are not prepared just to accept their poverty.

Dissident Activity
It must be acknowledged that current dissident activity in China (it makes no sense as yet to speak of a dissident movement) is on a very low level. After all, ninety-eight per cent of the population do not live in Peking or Shanghai, and only a fraction of the population even of these cities are involved, though there may well be more going on than can be discerned from this distance (it is unlikely that the Western media will devote the same kind and degree of attention to Chinese dissidents as they do to their Russian counterparts as long as Western capitalism feels its interests to be served by trade and other close links with China). Moreover there is no indication that the current crop of protesters have managed to recognise the state capitalist nature of the society they live in, unlike many Russian dissidents and the Sheng-wu-lian group who flourished briefly in China during the Cultural Revolution.

In spite of the confused nature of their ideas and aims, the Chinese dissidents are an inevitable product of a class-divided society. We look forward to the day when socialist posters appear on the streets of Peking and the establishment of a socialist party is possible in China.
Paul Bennett

Monday, November 26, 2018

Does Mao provide the Answer? (1970)

Book Review from the October 1970 issue of the Socialist Standard

Freedom and Necessity: An Introduction to the Study of Society. Joan Robinson. (Allen and Unwin. 128 pages. 12/-.)

This rather expensive little book by Economics Professor Joan Robinson certainly comes up to her disarming claim that it is “intended to provoke inquiry rather than to give information”, but as its conclusion is to hold China as a model for the future of mankind that is not good enough. Professor Robinson sees Mao's China through rose-tinted spectacles but makes no attempt to back up her claims with solid information or to answer the many criticisms of whose existence she cannot be unaware.

She covers an enormous range of subjects, starting with social groups in the animal kingdom and sweeping through tribal society, feudalism and capitalism, the Russian Revolution and finally Maoist China. Her particular claim is that “Chinese socialism is something new in the world.”

She writes:
   The Czech reformers claimed to establish socialism with a human face. The Chinese have set out on the more ambitious course of establishing economic development with a human sense of values.
She then tells us that we shall have to wait twenty years to see “Whether or not humanity is capable of carrying out such a programme.” Professor Robinson is well aware that exactly the same claims about human values were made by the capitalists who overthrew feudalism, by the Russian Communist party in 1917, and by Labour governments with their so-called “welfare state”. Socialists did not have to wait twenty years to know that these were bound to be empty claims; socialists had the advantage of understanding the basic difference between capitalism and Socialism and of knowing that the state capitalism that Lenin proclaimed as the next step in Russia and that the Labour Party wants in Britain is not Socialism. Professor Robinson shows no such understanding: when she talks of Socialism it is state capitalism she means. For her Russia, as well as China, is “socialist”. She makes no attempt to consider the proposition that the human values she seeks are unattainable except in socialist society as conceived by Marx and the Socialist Party of Groat Britain.

She realises however that she has to show China as being, in some way, different from Russia. She makes many references to the “mistakes” of the Russian government and its tyranny and cruelties, but how is China basically different? For example, in Chapter Eleven (“Another Way") she describes how China has tried to solve its agricultural problems, but it reads exactly like a Communist Party description of Russia’s agricultural policies, including all the familiar features: state farms, collectives, and peasant holdings. In Russia these policies were imposed on the resisting peasants forcibly and brutally. Professor Robinson admits that the Chinese peasant outlook (as in Russia) “did not fit in with the ideals of socialism”, but she blandly tells us that the Chinese peasants “agree” with what the government does to them and accept it “with goodwill”. She gives no evidence for this. She might tell us if the Chinese government allows peasants (and workers) freely to make their own decisions and form their own political parties to further them, and if not why not.

When the Conservative M.P., Sir Fitzroy McLean, went to China in 1963 he said that he found there the same kind of inequalities and privilege that he found when he visited Russia. He wrote:
  In China, as elsewhere, how you live and what you buy depends on how much money you have. And who, it will be asked, has the money? The answer, as in the Soviet Union is: the privileged classes, officials, high-ranking officers, scientists, technicians, skilled workers and so on. But there must be added a small and peculiarly Chinese category: the Chinese capitalists. These, surprisingly enough, are the former owners of, for example, factories, whose enterprises have been taken over by the State and who receive annually from the State as compensation a percentage of the capital value of the enterprise. As they are also very often employed as managers of the factories, some of them are extremely well off.
(Sunday Times, 9 Oct. 1963)
Colette Modiano, the French woman courier in charge of a group of Western visitors to China in 1969, gave a similar account and instanced a manager in whose house they stayed receiving £13,000 a year as interest on the capital value of his business taken over in 1956. (Sunday Express, 28 Sept. 1969.) Does Professor Robinson ask us to believe that lop-paid Chinese peasants and workers approved of these privileged incomes, or indeed, were ever consulted about them?

Professor Robinson does not offer to explain the “human values” of Chinese armaments, including those weapons of mass destruction, the hydrogen bombs which the Chinese government claims it is now perfecting.

Among a number of references to Marx is one concerned with population. Professor Robinson says that Marx was right to criticise Malthus about population, but "unfortunately he drew from this the conclusion that growing numbers are not a menace to well-being.” She holds Marx, at least partly, responsible for the Russian government’s “dogma that family planning is contrary to socialism”. She gives no evidence that Marx held such a view and it is in direct conflict with his own assertion that what he held to be the laws of population under capitalism had no application elsewhere: “every special historic mode of production has its own special law's of population, historically valid within its limits alone. An abstract law of population exists for plants and animals only, and only in so far as man has not interfered with them.” Capital, Vol. I, Chap. XXV, Section 3.) Incidentally. Engels, during Marx’s lifetime, expressed the view that socialist society might find itself “obliged to regulate the production of human beings” (Quoted by Professor Lewis S. Feuer in Marx & Engels. Fontana Classics. (P. 32).

Professor Robinson’s book opens with a not-at-all original saying of Chairman Mao. She and other Mao admirers can now add to their collection of his sayings the most recent of all: he sent greetings to Queen Elizabeth II on her birthday!
Edgar Hardcastle

Saturday, November 24, 2018

Political Notes: Bad Timing (1981)

The Political Notes Column from the August 1981 issue of the Socialist Standard

Bad Timing

How many more ex-Labour ministers can we expect to denounce the policies they supported when they were in office?

Tony Benn, as we all know, is about the most prominent in this: he makes no secret of the disenchantment which he says he suffered but claims that he was persuaded not to resign by his constituency party.

Now Benn is getting some competition, the latest being former Agriculture Minister John Silkin. Speaking to his constituency party in Deptford (Guardian 29/6/81), Silkin “ . . . declared himself opposed to voluntary as well as statutory incomes policies and accused Mr. Benn and Mr. Healey of remaining chained to discredited ideas.”

And as if that was not enough to prove his sudden enlightenment, Silkin “ . . . insisted that there was no evidence to show that inflation was caused by wages, least of all in a low wage economy like Britain's.”

Is the man, we may well ask, quite well? Of course he is frantically vying for attention with his more famous rivals in his seemingly doomed attempt to win Labour’s deputy leadership, but there must be limits to the lengths he will go.

The last Labour government, like all its predecessors—like the present Tory government and all its predecessors—was continually absorbed by its efforts to impose, by one means or another, what was called an incomes policy but which was actually a fight against wage rises. This battle to lower working class living standards was justified by Labour ministers on the grounds that higher wages caused inflation.

Of course that was—and is—nonsense but truth is always the first casualty in any government's war against working class interests. Is then Silkin’s abrupt concern for reality a case of bad timing? Or bad memory? Or just desperation at the prospect of failure in his attempt to lead the same party he now so fundamentally criticises.

We ought to be told.


Too Simple

Left wing, progressive, enlightened clergymen, with ready made instant remedies to all of capitalism’s woes are among the persistent targets for the barbs of right wing, reactionary Daily Telegraph satirist Peter Simple.

Of course Peter Simple is only joking, isn’t he? Only turning out word caricatures? Nobody like his Dr. Spacely-Trellis really exists, frothing out their compound of wet reformism and denatured religion, do they?

Well yea, actually they do and some of them emerged into the light of day with their tedious, predictable comments on the recent city riots. Like the Reverend Norwyn Denny (who, in spite of having a name like that, is not an invention of Peter Simple) leader of the Methodist Church in Merseyside.

Speaking in a debate in the recent Methodist Governing Conference, Denny blamed the riots onto the police, “this government”, the Home Secretary. The Conference responded by demanding a plan which, modestly, called for more policemen from “ethnic minorities”, better housing, less unemployment, a fight against racism . . . Need we go on?

There is a danger, in these troublous times, that normally peaceable but perceptive workers will feel like staging their own riot against soppy reformists who naggingly propound the same weary remedies whenever capitalism spews up some of its characteristic problems.

These remedies are usually phrased in terms dramatic enough to persuade their hapless targets that they have some relevance to the problems. In fact they evade the central point that social sores like racism, police harassment, urban decay and poverty are troubling us regardless of pious decisions from reformist conferences. They can be abolished, but only by getting rid of their cause—the capitalist social system.

But that seems too difficult a concept for people like Norwyn Denny to grasp. Or perhaps it is (no pun intended) too simple.


Sits Vac

When the last General Secretary of the Labour Party retired, it was said that there was a long queue of his colleagues at Transport House, all waiting to shake him warmly by the throat.

This gentle tale might be borne in mind by anyone thinking of applying for the job, when it comes up in a few months’ time. This is a bad time in Labour Party affairs to be trying to organise them from the top.

So any lefty-unemployed-manager type who is desperate enough to get off the dole queue to apply for Ron Hayward's job had better look pretty closely at the terms of reference.

Of job satisfaction there can be little. If the workers elect another Labour government (and helping that to happen will be a prime concern of the new General Secretary) Labour Party headquarters, will need to be extra busy as a factory of deception.

One priority will be to excuse policies which arc daily repressing the very people whose interests Labour claim to represent. Another will be to operate a sort of Orwellian memory hole in which inconvenient history becomes lost and a Ministry of Truth where they rewrite the dictionary so that poverty means abundance, war means peace, repressive, parasitic, conflict-ridden capitalism means free, cooperative, harmonious socialism.

If anyone can work their way through that without wanting to blow their brains out for very shame, the wage is enough above average to offer some consolation. Twenty thousand pounds a year is a fair amount of money but it comes with responsibility for one of capitalism’s dirtier jobs so it is probably considered well spent.

Those concerned with truth, or human welfare, or with abolishing capitalism and replacing it with the sane, secure world of socialism need not apply.


Chinese Take On

The illusion that the people of China enjoy a socialist society is gradually fading. The Chinese State Council has been introducing a series of reforms which seem not only to allow for a more efficient exploitation of the Chinese working class, but also to abandon general policies which encouraged ideas of equality.

For the past twenty years most Chinese workers have been on an eight-grade wage scale which offered a rate based on time, irrespective of output. So not only was there the sharp division between the wealthy bureaucratic capitalist class and the exploited working class, but there was also state-graded inequality of workers. But somehow there was seen to be a notion of egalitarianism in paying every worker the same wage (which, like all wages, would amount to less than the value of what the worker had produced) regardless of his output.

Now. the Chinese State Council, in an attempt to increase the exploitation of its working class—or to use its expression, “improve productivity”—has decided that millions of workers will not be paid by the day or week but by the amount of goods they produce. Reporting the new measures the Chinese Workers’ Daily actually complained that despite bonus schemes introduced after the Cultural Revolution “there is still a tendency towards egalitariansim” and that “we ( a bit of a giveaway as to who actually writes the Daily Worker!) throw a lot of money into bonuses without adequate results.” (our emphasis)

Monday, November 6, 2017

Chinese copy (1989)

From the January 1989 issue of the Socialist Standard

The government starts selling off state-owned houses to their occupiers, as a means of raising income and giving people incentives to improve their homes. At the same time it fights inflation and puts limits on government spending. No, this is not Thatcherite Britain but capitalist China, where all too familiar economic problems exist. Nor is the comparison with Britain an unwelcome one, as People's Daily has sung Thatcher's praises and commended her personal willpower and reliance on individual responsibility. China's own version of perestroika (but without glasnost) makes the different varieties of capitalism ever less distinct.

It is ten years since the post-Mao economic reforms began. Individual enterprises had greater power delegated to their managers, and then the system of contracted responsibility meant greater emphasis on the market to determine prices rather than central decision. Now, in the so-called "third wave" of reform, certain enterprises are being merged — that is, loss-making concerns are being taken over by more profitable ones. In ever more explicit acknowledgement that the profit system operates in China, individual factories are now viewed as commodities to be bought and sold. The way in which people are treated in a profit-oriented economy is highlighted by an admission that men are often preferred as employees to women, since the latter produce less surplus value (owing to longer breaks and maternity leave).

Houses in the Chinese countryside are usually owned (and indeed, built) by the occupiers, but those in towns and cities are nearly all state-owned. Rents are extremely low (around 3 per cent of a tenant's monthly income) as part of the social wage but there is a housing shortage and the building industry naturally makes no profits. Overcrowding is appalling, sometimes a family of grandparents, parents and child will have to live in a single room. Nearly half of urban households have access only to a shared lavatory, and over a quarter do not even have their own tap water. It remains to be seen how many will want to buy such palaces. The other problem will be fixing a price for the sold-off homes, as the present market price would be way beyond what ordinary workers could afford. It may even be decided to raise rents in order to encourage buying.

The Chinese health service is in no better shape, with the contradictions now patent between a system supposedly run for the benefit of all and one where profit and loss considerations are decisive. Hospital treatment is not free, but fees are very low, and well below the actual cost of treatment. However, the method of subsidy is such that the more patients a hospital treats, the more money it loses. So some hospitals now turn away patients, even in emergencies. According to one recent report from the south-west of China, doctors and nurses fought in the operating theatre over who should have the gallstones being removed from one patient — gallstones are a valuable ingredient in traditional Chinese medicines, and provide a convenient way for staff to augment their meagre incomes. Capitalism really does put a price on everything.

Just as in Russia, there is a flourishing black market in China: corruption and profiteering have become a way of life for some, and a part of everyday life for many more. Cigarette prices have been increased, with the unintended side-effect that private dealers take advantage of the fact that prices vary from place to place: they buy up popular brands and re-sell them at a profit in more expensive areas. Imported cigarettes are also subject to price speculation. High-quality liquor (costing over a month's wages per bottle at the new higher prices) is bought mainly by firms and various other organisations, presumably as perks for top employees or potential bribes. Such institutional "living it up" has been particularly frowned on, the government having ordered a reduction of spending and prohibited the use of top-class hotels for receptions and banquets.

In the first nine months of 1988, the retail price index rose 16 per cent. Economics spokesmen have complained that the economy is “overheating", with industrial output racing ahead of the production of energy and the capacity of the transport system. In a so-called planned economy, the number of state-run construction projects has had to be curtailed drastically. And a rise in imports has created a massive trade deficit.

Cancelling the construction projects does not just mean fewer luxury hotels, for those who would have been working on them (an estimated 13 million) will instead be returning to the countryside to put further stress on rural employment and living standards. The price at which the state purchases grain (wheat and rice) has stayed low, but has still been too high in many areas where local governments have put resources into construction projects. Consequently, some farmers have been paid not in money but in government lOUs. which do not provide clothes or heating. At the same time, grain imports have reached an all-time high. But 20 million peasants are officially reported to be short of food, after the fourth poor grain harvest in a row. A small minority of rural entrepreneurs have become extremely rich under the new regime, while others are forced to abandon their fields as fertiliser prices soar beyond their means. In other cases, the low grain price means farmers prefer more lucrative crops. But less grain also means less animal feed and so less pig-raising, hence the reintroduction of pork rationing in many cities.

As some workers return to their homes in the country, others head for the big cities in search of work. In Beijing there are nearly half a million so-called "vagrants" who have been there for over three months. Most sleep rough and exist on restaurant leftovers. Beggars are now a common sight in many Chinese cities; some disabled people are forced to beg because they cannot get a job or adequate welfare support. And the flood of overseas visitors has combined with the grinding poverty experienced by so many to cause the reappearance of prostitution.

In September, the free-market guru Miltom Friedman was warmly welcomed in Beijing. As he shook hands with party boss Zhao Ziyang, Friedman may have been reflecting that the two of them had plenty of common ground to discuss.
Paul Bennett

Sunday, November 5, 2017

Chinese ‘Marxism’: Not Even Trying (2017)

From the November 2017 issue of the Socialist Standard
China has been run on supposedly Marxist lines for nearly seventy years, yet nowadays its rulers do little more than pay lip service to the idea that there is anything Marxist about the social system there. ‘Socialism with Chinese characteristics’ is the standard official description of the wages-prices-profits set-up that is really one form of capitalism.
The Chinese Communist Party (CCP) was founded in 1921. Last year at a conference held to mark its 95th anniversary, Xi Jinping, general secretary of the party’s Central Committee, gave a speech. Xi, who is also the country’s president, argued that Marxist principles had to be adapted to what was happening in China. ‘The changes in the times and the range and depth of China’s development are far beyond the imagination of classical Marxist writers,’ he said. Certainly Marx never envisaged socialism as a society with billionaires, or as one that protected the trademarks of multinational companies, but that is not what Xi had in mind.
According to the CCP’s constitution, the party is based on ‘Marxism-Leninism, Mao Zedong Thought, Deng Xiaoping Theory, the important thought of Three Represents and the Scientific Outlook on Development’. But as for what these actually mean, there is very little information. For instance, the Scientific Outlook on Development supposedly ‘puts people first and calls for comprehensive, balanced and sustainable development’, while ‘Mao Zedong Thought is Marxism-Leninism applied and developed in China’.
China’s constitution, adopted in 1982, states that there are no longer exploiting classes, but that class struggle will continue for some time.  According to Article 6 there is socialist public ownership of the means of production, and the principle of ‘from each according to his ability, to each according to his work’ applies.
A 1988 amendment added that ‘The State permits the private sector of the economy to exist and develop within the limits prescribed by law.’ This was an official recognition of the growing influence of the non-state economy, with the establishment in effect of a mix of state and private capitalism (not stated in such terms, of course). In 1999 a further amendment accepted the existence of a variety of modes of distribution, so not just to each according to their work: again, no details, but perhaps an implicit acknowledgement that some people became very rich through exploiting others.
As for Deng Xiaoping Theory, this is the idea behind China opening up to the global economy and to the growth of private capitalism. Deng’s statement that ‘It doesn’t matter whether a cat is white or black, as long as it catches mice’ was a way of saying that economic success is more important than a politically correct policy. Xi Jinping is often seen as overseeing a return to ‘Communist orthodoxy’ compared to his predecessors as leader, but this does not go beyond platitudes such as ‘Marxism … does not end the truth, but opens the door and paves the way to reach the truth’.
In October 2015 a ‘World Marxist Congress’ took place in Beijing, intended to be the first in a series to be held every two years. Four hundred supposed Marxist scholars attended, many from outside China. Xin Xiangyang, described as ‘a research fellow on Marxism at the Chinese Academy of Social Sciences’ stated that ‘China faces an increasing number of problems in the midst of its economic slowdown and deepening reform, such as corruption and the growing income gap, which require the country to use Marxism to explain and solve them.’ Presumably these are unlikely to be explained as being part and parcel of capitalism.
Not everyone in China was impressed by the gathering. According to the WashingtonTimes (15 October 2015), some people suggested that Marxism be used to study the murderous Great Leap Forward and Cultural Revolution.
‘Marxism’ is taught in schools at all levels, but presumably this is just a Chinese version of Bolshevism. The rulers of China hardly even pretend that there is anything Marxist about the exploitative and unequal society they lord it over. 
Paul Bennett


Friday, August 25, 2017

'Socialist' China Questioned (1978)

From the August 1978 issue of the Socialist Standard

Our new pamphlet Questions of the Day is, we think, a good 50p worth.

But it does contain an error. On page 86 in the chapter on the Chinese Revolution, we quote from Mao's July 1949 statement On People’s Democratic Dictatorship.
. . . and we must unite with the national bourgeoisie in common struggle. Our present policy is to regulate capitalism not to destroy it.
Unfortunately, we omitted the word “present.” You may be excused for asking 'So what?’ However a blunder is a blunder. Besides, some members of a maoist sect were particularly annoyed and accused us of being liars and distorters.

The omission of the word “present” is important to the maoists. They believe that the policy of regulating capitalism no longer applies because China is now Socialist.

Let’s examine that claim. The People’s Republic inherited from the Nationalists a sizeable state-owned sector in industry, banking and transport. About one third of industrial output was produced by enterprises confiscated by the Nationalists as Japanese assets at the end of World War II. It gave Mao and the Chinese Communist Party a base for increasing state ownership.

At first, private enterprise was allowed to continue. After all hadn’t Mao urged the workers to “unite with the national bourgeoisie in common struggle”? (Whatever happened to the class struggle? You may well ask) This meant that those hundreds of thousands of capitalists got their reward for backing the winning side in the civil war.

Between 1952 and 1955, economic and ideological pressures coupled with financial inducements helped enlarge the state control at the expense of private ownership. Government policy was still to regulate capitalism, and the system was officially referred to as “state capitalism”.

Then in 1955 a large scale nationalisation drive was launched to convert the rest of the private enterprises in modern industry to joint public and private ownership.

By the following year 67.5 per cent of industrial enterprises excluding handicrafts was government owned. The remainder were joint public and private enterprises. (State Statistical Bureau. Ten Great Years, Peking 1960.) The Government apparatus was still busy regulating capitalism

But wait! Here’s Mao claiming to have established socialism. In his speech ‘On the Correct Handling of Contradictions Among the People.’ Feb. 1957. (Selected Works Peking 1977 vol. 5, p. 394) he says:
But our socialist system has only just been set up; it is not yet fully established or fully consolidated. In joint state-private industrial and commercial enterprises, captalists still get a fixed rate of interest on their capital, that is to say exploitation still exists.
And How. In these public-private enterprises, the capitalists, in return for relinquishing full ownership received 5 per cent annual interest on the value of their investment regardless of profit or loss. This remuneration was promised to private stockholders for a period of six years. It should therefore have come to a halt in 1962.

However in 1966, Dr. Barry Richman, a Canadian consultant in management and economic development, went to China on a two month tour. He visited eleven cities and in the course of his research project conducted interviews in some 38 industries with over 200 Chinese people including managers, Communist Party and Trade Union Officials, specialists, engineers and other workers.

The results are in a bulky 968 page tome entitled Industrial Society in Communist China (1969). The chapter entitled Communist China’s Red Capitalists is most illuminating. It opens as follows:
   On my visit to Shanghai in May 1966 it was indeed disconcerting for me to be picked up by a native Chinese capitalist in a new Jaguar, taken to his large factory for a day of discussions, and later to his sumptious home where he still lives as a wealthy industrialist does in a capitalist nation. Mr. Wu Tsung-i, my Chinese Communist capitalist acquaintance not only lives like a capitalist but also looks like a capitalist and at times, still thinks and acts like a capitalist . . .
No wonder. His investment was assessed at $640,000 from which he was paid the equivalent in yuan of $32,000 per year. He also picked up a salary of 380 yuan per month. But Mr. Wu was small time.

Comrade Liu Tsing Kee was a real Chinese fat cat. A member of both the Shanghai Congress and the National People Congress, he received a whacking $400,000 annually from his five major cotton mills. His family assets were estimated at $16m and according to Richman he employed four servants in a palatial home which was stuffed with antiques.

Richman reckoned that there were about 300,000 capitalists in the People’s Republic. Ninety thousand of them, he said, were in Shanghai alone. And this was supposed to be Socialism.

As recently as 1972 Professor Ishwar C. Ojha of Boston University attended the funeral of the late minister of Foreign Affairs, Chen Yi. The professor told our companion journal The Western Socialist (No. 3 1972) that the national capitalists were represented by one of their number. In his opinion however, they were at that time somewhat subdued and not advertised as extensively as they had been in the past.

At the present time the Chinese ‘socialists’ are not very forthcoming about the status of the national capitalists. Perhaps they’re just too much of an embarrassment.

But regardless of their current standing one thing is obvious. The Chinese Communist Party equates socialism with nationalization. Mao himself said so in 1949.
   When the time comes to realize socialism, that is to nationalize private enterprise, we shall carry the work of educating and remoulding them (the national capitalists) a step further.
(On the People’s Democratic Dictatorship)
In the opinion of Professor Alexander Eckstein (China’s Economic Revolution, Cambridge Press 1977)
    . . .  a country embarking on the process of deliberate industrialization in the mid-twentieth century will necessarily develop a different industrial structure than a country that may have experienced its industrial revolution amidst laissez-faire conditions in the nineteenth century.
State ownership in China is nothing more than a move towards modernisation in an attempt to enable China to compete effectively with other nations in 20th century capitalism.

Apologists for the Chinese regime sometimes maintain that criticism is irrelevant because they are building an egalitarian society.
Professor Eckstein found little evidence of this when he visited China in 1972.
     “On the contrary,’ he writes on p. 281, “as one travels around China and meets peasants, workers, cadres, and high ranking government officials, status differences are clearly apparent in many subtle ways such as dress, bearing, deference by others, and many other privileges that surround power positions in all societies.”
He also points out that wages of top people can be as much as twenty times that of the lowest paid.

The Chinese Communist Party, being supposedly Marxist, would presumably be aware of Marx’s pronouncement on the possibility of egalitarianism within the wages system.
     Upon the basis of the wages system the value of labouring power is settled like that of every other commodity: and as different kinds of labouring power have different values, or require a different quantity of labour for their production, they must fetch different prices in the labour market. To clamour for equal or even equitable retribution on the basis of the wages system is the same as to clamour for freedom on the basis of the slavery system. (Wages Price and Profit)
Modern China has commodity production, buying and selling, wages and prices, money and markets—all the paraphernalia of capitalism.

Speaking about the modern state Engels pointed out:
   The more it proceeds to the taking over of the productive forces the more does it actually become the national capitalist, the more citizens does it exploit. The wages workers remain wages workers—proletarians. (Anti-Duhring)
Anyone who still doubts that China is capitalist has only to consider Chairman Hua’s newest master plan —the introduction of bonuses, work quotas and piece work (Guardian 28th April 1978)

As any British factory worker knows, piece work is an attempt to increase productivity and therefore profits. It causes a speed-up in work rate which can lead to tiredness and a relaxation in safety standards.

Marx’s view of piecework was straightforward. It was, he said “the form of wages most in harmony with the capitalist mode of production.” (Capital Vol. 1) 

After the great leaps and the five year plans the Chinese Communist Party’s policy is still to regulate capitalism—only conscious political action by a majority of the world’s working class can destroy it. 
Eddie Toal



PAMPHLET QUESTIONS OF THE DAY

CORRECTION
Our attention has been drawn to an error on Page 86 of this pamphlet. The word ‘present’ was inadvertently left out of the last sentence of the passage quoted from a speech by the late Chairman Mao. It should read ‘Our present policy is to regulate capitalism, not to destroy it’.

The same quotation was used in its correct form in the Socialist Standard October 1974.

Tuesday, July 11, 2017

Ups and Downs in China (2017)

From the July 2017 issue of the Socialist Standard

We look at the rise of China as an economic and political power

In April the first rail freight service from Britain to China left a terminal in Essex for a 7,500-mile journey to eastern China. Thirty containers with goods such as whisky, soft drinks and pharmaceuticals travelled via the Channel Tunnel and seven countries (including Russia and Kazakhstan). The train took over two weeks to reach its destination, but this route is cheaper than air transport and faster than sea. Three months before, the first freight train had travelled from China to the UK. This illustrates the fact that China is now a central part of the global trade system, as both importer and exporter.

Developments over the last forty years have resulted in China being the world’s second most economically powerful country, after the US. Over a hundred Chinese companies are now on the Fortune 500 Global List, with only the US having more. State-owned enterprises gradually became less dependent on the government, but even private companies still rely greatly on government permissions and licences. Investment from overseas companies, mainly via joint ventures, resulted in industrial expansion. Labour costs have been very low, leading to big profits, but are now increasing.

The change from state capitalism to a mixed state and private system may have been started by Deng Xiaoping in 1978, but the idea of China being part of the global economy did not originate with Deng. As Mao Zedong is reported to have told a US diplomat in 1945: ‘China needs to build up light industries to supply her own market and raise the living standards of her own people. Eventually she can supply these goods to other countries in the Far East. To help pay for this foreign trade and investment, she has raw materials and agricultural products. America is not only the most suitable country to assist this economic development of China: she is also the only country fully able to participate. ‘

GDP has grown at around seven percent a year in the last few years, and exports have been consistently larger than imports (by $380bn in 2014, for instance, and $600bn in 2015). Manufacturing has been the core of the expansion, though now the service sector outranks industry and construction. Electronics, machinery and clothing are the largest export sectors, with many global companies having their smartphones and laptops manufactured in China, often in sweatshops and factories with appalling working conditions, leading to much resistance by workers. In the first three months of this year, GDP growth continued at an annual rate of just under seven percent, but there are signs of a slowdown since then. China’s foreign exchange reserves, though still enormous, have been falling steadily. There have been claims by some economists that China is on the verge of a crash comparable to the subprime crisis in the US in 2008, but such predictions are hardly reliable. In May China’s credit rating was cut by one agency.

One result of these changes has been a massive movement of people from the countryside to cities, not as a part of government policy but as a consequence of people seeing urban life as a way to escape from rural poverty and isolation. It is claimed that over the last 35 years, 500 million people have moved from the countryside to cities, including ten million moving to Shanghai alone. This inevitably puts enormous pressure on services such as housing and education, with many children of these migrants not being able to attend school. One response of China’s rulers has been to create urban mega-regions, which cover massive areas and have populations of perhaps 100 million. One example is Jing-Jin-Ji, to include much of the cities of Beijing and Tianjin and the province of Hebei.  These mega-regions need a great deal of investment in housing, transport and other kinds of infrastructure, and there are concerns that they will lead to ‘endless cities’, as already found in countries such as Brazil and Japan.

It is generally accepted that there have been big decreases in poverty over this period. On World Bank figures, in 1990 650 million people in China were living on less than $1.90 a day, but by 2013 this figure was down to around 26 million. But it is by no means clear how reliable such figures are, and even most of those living above this poverty line are pretty badly off. Moreover, inequality is not just a matter of rural–urban contrasts, as a 2014 survey suggested that one percent of the population possessed one-third of the wealth. There are more dollar billionaires in China than in the US, though even the richest (Wang Jianlin, with $32bn) is not among the world’s twenty wealthiest people.

And there are big plans in China for further economic expansion, with claims to sovereignty over raw materials in exclusive economic zones in the South China Sea, and the proposed Belt and Road Initiative (see the Socialist Standard, June 2015). Even though the economic problems mentioned earlier cast doubt on whether Chinese banks can finance all this by themselves, a big summit was held in Beijing in May to push the proposal. British capitalists have their eyes on China for increased trade, especially post-Brexit, and Philip Hammond said in a speech there that ‘Britain, lying at the western end of the Belt and Road, is a natural partner in this endeavour’. If – a big ‘if’ – Britain signed a free-trade deal with China, it might help to mitigate any adverse effects on trade and profits of leaving the EU. Representatives of the EU have, however, been less keen on the Belt and Road, supposedly because of the lack of commitment to environmental sustainability, but perhaps more because of concern about economic competition. Vladimir Putin spoke at the same summit, referring to a Greater Eurasia and declaring that this would be ‘a truly civilisation-wide project looking toward the future’. More rhetoric than anything else, of course, but the ‘New Silk Road’ may well be viewed as a framework for a forthcoming challenge to US global hegemony, with Putin not wanting Russia to lose out to China.

China’s rise has frightened the American ruling class in various ways. Under Obama it was decided that the majority of US naval forces would be transferred to the Pacific, and there are now over four hundred military bases, stretching from Australia, the Marshall Islands and the Philippines to South Korea and Japan, stocked with missiles, warships and nuclear weapons. No doubt these have many possible uses as a way of maintaining US dominance, but one potential employment is for what John Pilger (New Internationalist, December 2016) has described as ‘the coming war on China’. While campaigning to be president, Donald Trump described China as an enemy of the US, but the language became friendlier after he took office.

In May a trade agreement was signed under which China will allow imports of US beef, while the US will allow the import of cooked poultry from China. Hardly a major change, but possibly an indication of future developments. If China overtakes the US economically in the next decade or two, as some have claimed is likely, then US hegemony will have lasted a little over a century.
Paul Bennett