China

2
Oct

TWO REVOLUTIONS

Rough Notes

By Perry Anderson
New Left Review 118
July-August 2019

If the twentieth century was dominated, more than by any other single event, by the trajectory of the Russian Revolution, the twenty-first will be shaped by the outcome of the Chinese Revolution. The Soviet state, born of the First World War, victor in the Second, defeated in the cold replica of a Third, dissolved after seven decades with scarcely a shot, as swiftly as it had once arisen. What has remained is a Russia lesser in size than the Enlightenment once knew, with under half the population of the USSR, restored to a capitalism now more dependent on the export of raw materials than in the last days of Tsarism. While future reversals are not to be excluded, for the moment what has survived of the October rising, in any positive sense, looks small. Its most lasting achievement, huge enough, was negative: the defeat of Nazism, which no other European regime could have encompassed. That, at any rate, would be a common judgement today.

The outcome of the Chinese Revolution offers an arresting contrast. As it enters its seventh decade, the People’s Republic is an engine of the world economy, the largest exporter at once to the EU, Japan and the United States; the largest holder of foreign-exchange reserves on earth; for a quarter of a century posting the fastest growth rates in per capita income, for the largest population, ever recorded. Its big cities are without rival for commercial and architectural ambition, its goods sold everywhere. Its builders, prospectors and diplomats criss-cross the globe in search of further opportunities and influence. Courted by former foes and friends alike, for the first time in its history the Middle Kingdom has become a true world power, whose presence reaches into every continent. With the fall of the ussr, no formula to describe the turn of events it signified became so canonized as ‘the collapse of communism’. Twenty years later that looks a touch Eurocentric. Viewed in one light, communism has not just survived, but become the success story of the age. In the character and scale of that achievement, of course, there is more than one—bitter—irony. But of the difference between the fate of the revolutions in China and Russia, there can be little doubt.

Where does the explanation of this contrast lie? Despite the world-historical gravamen of the question, it has not been much discussed. At issue, of course, is not just a comparison of two similar but distinct upheavals, otherwise unrelated in their different settings, as in the once familiar pairing of 1789 and 1917. The Chinese Revolution grew directly out of the Russian Revolution, and remained connected with it, as inspiration or admonition, down to their common moment of truth at the end of the eighties. The two experiences were not independent of each other, but formed a consciously ordinal sequence. footnote1 That tie enters into any consideration of their differing outcomes. To explain these, in turn, involves reflection at a number of levels. Four of these will be distinguished here. Firstly, how far did the subjective political agencies of the two revolutions—that is, the respective parties in each country, and the strategies they pursued—differ? Secondly, what were the objective starting-points—socio-economic and other conditions—from which each ruling party set out on its course of reform? Thirdly, what were the effective consequences of the policies they adopted? Fourthly, which legacies in the longue durée of the history of the two societies can be regarded as underlying determinants of the ultimate outcome of revolutions and reforms alike? Since the PRC has outlived the USSR, and its future poses perhaps the central conundrum of world politics, the organizing focus of what follows will be China, as seen in the Russian mirror—not the only relevant one, as will become clear, but an ineludable condition of the rest.

1. Matrices

The October Revolution, famously, was a swift urban insurrection that seized power in Russia’s major cities in a matter of days. The speed of its overthrow of the Provisional Government was matched by the crystallization of the Party that accomplished it. The Bolsheviks, numbering no more than 24,000 in January 1917, on the eve of the abdication of Nicholas ii, had mushroomed to somewhere over 200,000 when they toppled Kerensky’s regime nine months later. Their social base lay in the young Russian working class, which comprised less than 3 per cent of the population. They had no presence in the countryside, where over 80 per cent of the population lived, having never thought to organize among the peasantry—any more than had the Social Revolutionaries, though the srs enjoyed an overwhelming rural following in 1917. Such rapid victory, from a still narrow ledge of support, was rendered possible by the shattering of the Tsarist state by German hammer-blows in the First World War—military failure detonating mutinies that dissolved its repressive apparatus, the February Revolution leaving only the shakiest lean-to of a successor authority.

But if power was taken easily in this vacuum, it proved hard to hold. Vast tracts of territory fell to German occupation. Once Germany was itself defeated in 1918, ten different expeditionary forces—American, British, Canadian, Serb, Finnish, Romanian, Turkish, Greek, French, Japanese—were dispatched to help White armies crush the new regime in a bitter Civil War that lasted till 1920. At the end of it, completing the destruction wrought in the World War, Russia was in ruins: famine in the villages, factories abandoned in the towns, the working class pulverized by the fighting and de-industrialization of the country. Lenin’s Party, its social base disintegrated or absorbed into the structures of the new state, was left an isolated apparatus of power suspended over a devastated landscape: its rule now associated with the miseries of domestic war rather than the gifts of peace and land delivered after October.

The Union of Soviet Socialist Republics that, by a supreme effort, it brought into being covered the larger part of the former Russian empire. But, the first modern state in history to reject any territorial definition, the emergent ussr laid no claim to patriotic pride or national construction. Its appeal was international: to the solidarity of the labour movement across the world. Having taken power in a huge backward country, whose economy was overwhelmingly agrarian and population largely illiterate, the Bolsheviks counted on revolutions in the more developed, industrial lands of Europe to rescue them from the predicament of a radical commitment to socialism in a society without the preconditions of any coherent capitalism. A gamble the beleaguered rulers soon lost, it meant nothing to the mass of the ruled from the start. The Soviet Party would have to hold out on its own, attempting to move as far as it could towards another form of society, without much support at home or any assistance from abroad.

2

The Chinese Revolution, although it was inspired by the Russian, inverted virtually all its terms. The CCP, created in 1921, still had less than a thousand members four years later, when it started to become for the first time a significant force, born of the explosion of working-class militancy in coastal cities with the May 30th movement of 1925, and aided by the vital role of Soviet advisers and supplies in the fledgling GMD regime led by Sun Yat-sen in Canton. Between that founding moment and the Communist conquest of power across China lay struggles that extended through a quarter of a century. Its milestones are well known—the Northern Expedition of 1926, joining Nationalists and Communists against the leading warlord regimes; the massacre of Communists by Chiang Kai-shek in Shanghai in 1927; the ensuing White Terror; the establishment of the Jiangxi Soviet in 1931, and the five annihilation campaigns waged against it by the gmd; the Long March of the Red Army to Yan’an in 1934–35, and the creation of Border Regions ruled by the ccp in the north-west; the United Front again with the gmd against Japanese invasion in 1937–45; and the final civil war of 1946–49, in which the PLA swept the country. continue

Category : China | Socialism | USSR | Blog
16
Sep

 

 

 

 

 

 

 

 

 

By John Ross
Learning from China

June 2017 – The Hamburg G20 summit was a further stage in a process that has been developing strongly during the  2017: a recognition that a new stage in China’s international ‘thought leadership’ has developed.  For decades China had the world’s most rapidly growing economy, the world’s fastest increase in living standards, and was responsible for over 80% of the reduction of the number of people in the world living in poverty.

But now, as Edward Luce, the chief Washington correspondent for the Financial Times, noted: ‘ It was during Obama’s second term that China overtook the US as the world’s largest economy on a purchasing power parity basis. It is likely to overtake the US in dollar terms within the next presidential term, regardless of who is in office.‘ This gigantic economic development inevitably produced a growing global impact. But  the new stage, as confirmed below, is even Western analysts note that China, or to be more precise the Communist Party of China (CPC) and President Xi Jinping, are winning in the global ‘battle of ideas’. It is therefore important to analyse the reasons for this.

Such examination illustrates not only individual issues but demonstrates clearly the superiority of Xi Jinping’s Marxist analysis over Western thinking. This can be particularly clearly demonstrated by examining the wide international discussion which has contrasted China’s key recent global initiatives, such as Xi Jinping’s speech at the Davos World Economic Forum and the One Belt One Road summit in Beijing, with US attempts to articulate a general alternative foreign policy framework to China’s. Such analysis has the advantage it clearly demonstrates the way these concepts put forward by Xi Jinping both flow from Marxist ideas and simultaneously develop them in a new international situation – and why they can be clearly understood by a non-Marxist audience. In summary, as will be shown, the wide ranging international discussions in 2017 have clearly demonstrated the superiority of the CPC’s Marxist thinking over Western ideas.

China rising

Immediately following Donald Trump’s inauguration as US President his Chief Strategist, Steve Bannon, admitted in practice what were the two most influential global views today: ‘I think it’d be good if people compare Xi’s speech at Davos and President Trump’s speech in his inaugural…. You’ll see two different world views.’

Indeed, it is widely understood in the Western media that the last period has seen a major shift internationally in both practical policy initiatives and ‘thought leadership’ towards China. Martin Wolf, chief economics commentator of the Financial Times, and one of the West’s most influential journalists, stated bluntly at the end of May that the question now being discussed in all countries was: ‘Would it not be wiser, they wonder, to move closer to China?’ Ian Bremmer, President of the Eurasia Group, the most influential Western ‘risk analysis’ company, noted regarding one of the key indicators of China’s success in projecting not only practical power but also ideas: ‘Davos reaction to Xi speech: Success on all counts.’

Merely to take in chronological order some of the landmarks of China’s sharply rising influence:

China’s initiative to establish the Asian Infrastructure Investment Bank (AIIB) was highly successful – with even close United States allies, such as the UK and Germany, participating and refusing to support US calls to boycott it.
Xi Jinping’s speech at Davos World Economic Forum was almost universally analysed in the West as encapsulating a major strategic success. In addition to Bremmer’s conclusion already cited, Hans-Paul Buerkner, chairman of the Boston Consulting Group, noted: ‘President Xi emphasized the importance of continued globalization, growth and equity, which impressed me the most.’ Khalid Al Rumaihi, chief executive of the Bahrain Economic Development Board concluded: ‘President Xi’s insistence to deepen globalization, to strengthen economic growth, and his warning against isolationism are extremely comforting and a strong endorsement.’

The recent Beijing One Belt One Road (B&R) summit’s significance was well understood in the West. The Financial Times, under a self-explanatory headline ‘Europe must respond to China’s Belt and Road initiative’, analysed: ‘Beijing is using the laws of economic gravity and physics to shape the global economy… The gravity metaphor is well established in the so-called “gravity models” of international trade, which relate the size of trade flows to the “mass” (economic size) and distance between trading partners. The indisputable finding is that physical distance remains monumentally important in international economics… as international supply chains have grown over recent decades, the most complex ones are regional more than global… As for physics metaphors, the relevant concept is friction. Gravity affects all bodies equally in a vacuum; friction, however, can change the speed at which they fall. So, too, in economics, where the frictions are the costs of trade. These can be physical — in the case of landlocked countries with poor infrastructure, say — and man-made. The most significant man-made trade costs are no longer border tariffs but regulatory, administrative and cultural barriers to doing business across national borders. They remain high…China… understands both concepts very well. The Belt and Road aims to overcome the bounds of gravity by reducing frictions, and to use the forces of attraction this unleashes to centre a growing part of global economic activity on China.’

China has long been influential among developing countries but the Financial Times has now noted that China’s overall influence is extending even into traditional US allies. EU officials noted for example: ‘the establishment of a 16-nation bloc of central and eastern European countries — many of them EU members. The bloc is sometimes used to frustrate EU decisions that could disadvantage China, said the officials.’ Regarding Singapore, another traditional US ally, the FT analysed reporting the recent Shangri-La dialogue,: ‘Ng Eng Hen, Singapore’s defence minister, was keen to build bridges with Beijing when he spoke to the assembled generals, diplomats and policy wonks at the Shangri-La hotel at the weekend. He made no mention of… the South China Sea and fawned over the Belt and Road project… “China has stepped on the pedal to push ahead with its plans to be a leader for trade in the Asia Pacific region, if not the world.”‘ Regarding Australia, another traditional US ally, Edward Luce noted: ‘Long before Trump’s victory, Australians were also debating whether their country should distance itself from the US to accommodate a rising China — a more important economic partner than the US. Now such arguments have gone mainstream. Former prime ministers, such as Paul Keating, make the case that Australia should hedge its bets.“’

China’s sharply rising international influence was certainly further aided by self-inflicted US wounds such as Trump’s virtually universally internationally condemned decision to withdraw from the Paris Climate Accord. Even within the US this latter decision was attacked as weakening the United States – a pillar of the US establishment such as Goldman Sachs CEO Lloyd Blankfein taking to Twitter for the first ever time to declare: ‘Today’s decision is a setback for the environment and for the U.S.’s leadership position in the world.’ But, as is clear from the facts already noted above, the further weakening of the US’s international position by Trump’s position on the Paris Climate Accord simply followed from a period when China’s global position was already strongly strengthening. As Edward Luce summarised:

‘The world was already making adjustments before Trump… Almost two years before the UK’s Brexit referendum, David Cameron, Britain’s then prime minister, rolled out the red carpet for Xi Jinping on a state visit to the UK. Britain also enraged Obama’s White House by rushing to join China’s Asia Infrastructure Investment Bank… Others, such as Australia and Germany, hesitated but then followed suit. Almost every western power sent delegations, among them 29 heads of state, to China’s recent “One Belt, One Road” summit in Beijing. When China speaks, foreign governments listen.’

The shifting of the centre of global initiatives and thinking to China, analysed from the point of view of internal Chinese development in Wang Wen’s analysis is therefore fully confirmed by the analysis in the Western media itself.

A ‘Trump doctrine’?

Almost certainly in reaction both to the rise in China’s impact noted above, and to increased scepticism regarding US foreign policy views, immediately after President Trump’s first foreign trip, his National Security Adviser McMaster and his Director of the US National Economic Council Cohn jointly authored a Wall Street Journal article systematically setting out the principles of US foreign policy. The significance of this joint article, which could not have appeared from such high placed figures without approval of the President, was immediately recognised – CNN’s Fareed Zakaria, one of the US’s most important foreign policy commentators, noted: ‘We now have a Trump Doctrine.’ continue

Category : China | Globalization | Marxism | Blog
10
Aug

Lowwagecapitalism.com

During the Cold War and the struggle that put the USSR and China on one side and imperialism headed by Washington on the other side, revolutionaries used to characterize the conflict as a class war between two irreconcilable social systems.

There was the socialist camp, based upon socialized property, economic planning for human need and the government monopoly of foreign trade on the USSR-China side, and capitalism, a system of production for profit, on the other.

That the two systems were irreconcilable was at the bottom of the conflict dubbed the Cold War. In light of the current sharpening economic, diplomatic, political and military conflict between U.S. imperialism and the People’s Republic of China (PRC), it is time to revive the concepts that were applied during the height of the Cold War.

Of course it is necessary to make modifications in these formulations with respect to socialism in China, with its mix of controlled capitalism and guided socialism.

Nevertheless, the conflict between imperialist capitalism, headed by Washington, Wall Street and the Pentagon, and the Chinese socialist economic system, which has state-owned industry at its core and planned economic guidance, is becoming much sharper, and imperialism is growing more openly hostile.

U.S. imperialism’s long-standing effort to overthrow socialism in China, Chinese capitalism notwithstanding, has been concealed beneath sugary bourgeois phrases about so-called “common interests” and “economic collaboration.”  But this kind of talk is coming to an end.

Washington’s first campaign to overthrow China — 1949-1975

This struggle has been ongoing since 1949, when the Chinese Red Army drove U.S. puppet Chiang Kai-shek and his nationalist army from the mainland as it retreated to Taiwan under the protection of the Pentagon.

The conflict continued through the Korean War, when Gen. Douglas MacArthur and the U.S. high command drove the U.S. troops to the Chinese border and threatened atomic war. Only the defeat of the U.S. military by the heroic Korean people under the leadership of Kim Il Sung, with the aid of the Chinese Red Army, stopped the U.S. invasion of China.

The struggle further continued with the U.S. war against Vietnam. The war’s strategic goal was to overthrow the socialist government of Vietnam in the north and drive to the border of China to complete the military encirclement of the PRC. Only the world-historic efforts of the Vietnamese people under the leadership of Ho Chi Minh stopped the Pentagon in its tracks.

The Pentagon’s plans for military conquest failed

With the rise of Deng Xiaoping and the opening up of China to foreign investment beginning in December 1978, Wall Street began to reevaluate its strategy. The U.S. ruling class began to take advantage of the opening up of China to foreign investment and the permission for private capitalism to function, which could both enrich U.S. corporations in the massive Chinese market and at the same time penetrate the Chinese economy with a long-range view to overturning socialism.

U.S. multinational corporations set up operations in China, hiring millions of low-wage Chinese workers, who flocked to the coastal cities from the rural areas. These operations were part of a broader effort by the U.S. capitalists to set up low-wage global supply chains that integrated the Chinese economy into the world capitalist market. The U.S.’s recent sharp turn aimed at breaking up this economic integration with the Chinese economy, including the witch hunt against Chinese scientists and the U.S. Navy’s aggressive behavior in the South China Sea (called the Eastern Sea by Vietnam), is an admission that the economic phase of the U.S. attempt to bring counterrevolution to China has failed.

China is now a growing counterweight to Washington in international economics, high technology, diplomacy and regional military might in the Pacific, which the Pentagon has always considered to be a “U.S. lake” ruled by the Seventh Fleet.

The attack on Huawei

A dramatic illustration of the developing antagonisms is the way the U.S. had Meng Wanzhou, the deputy chairwoman and chief financial officer of Huawei, arrested in Canada for supposed violations of U.S. sanctions against Iran — an outrageous example of imperialism exercising extraterritoriality. The Trump administration has also leveled sanctions against Huawei electronics, the world’s largest supplier of  high-tech operating systems in the world. Huawei employs 180,000 workers and is the second largest cell phone manufacturer in the world after the south Korean-based Samsung.

The sanctions are part of the U.S. campaign to stifle China’s development of the latest version of data-transmission technology known as Fifth Generation or 5G.

The Trump administration has barred U.S. companies from selling supplies to Huawei, which has been using Google’s Android operating system for its equipment and Microsoft for its laptop products — both U.S.-based companies. Huawei is contesting the U.S. ban in court.

Meanwhile, as a backup plan in case Washington bans all access to Android and Microsoft, Huawei has quietly spent years building up an operating system of its own. Huawei developed its alternative operating system after a 2012 finding by Washington that Huawei and ZTE, another Chinese giant cell phone maker, were in criminal violation of U.S.“national security.” ZTE was forced to shut down for four months. (South China Morning Post, March 24, 2019)

But the conflict is about more than just Huawei and ZTE.

The new ‘red scare’ in Washington

The New York Times of July 20, 2019, carried a front page article entitled, “The New Red Scare in Washington.” A few excerpts give the flavor:

“In a ballroom across from the Capitol building, an unlikely group of military hawks, populist crusaders, Chinese Muslim freedom fighters and followers of the Falun Gong has been meeting to warn anyone who will listen that China poses an existential threat to the United States that will not end until the Communist Party is overthrown.

“If the warnings sound straight out of the Cold War, they are. The Committee on the Present Danger, a long-defunct group that campaigned against the dangers of the Soviet Union in the 1970s and 1980s, has recently been revived with the help of Stephen K. Bannon, the president’s former chief strategist, to warn against the dangers of China.

“Once dismissed as xenophobes and fringe elements, the group’s members are finding their views increasingly embraced in President Trump’s Washington, where skepticism and mistrust of China have taken hold. Fear of China has spread across the government, from the White House to Congress to federal agencies.”

The Trump administration has opened up a tariff war against the PRC, imposing a 25-percent tariff on $250 billion worth of Chinese exports and threatening tariffs on another $300 billion. But there is much more to Washington’s campaign than just tariffs.

The FBI and officials from the NSC (National Security Council) have been conducting a witch hunt, continues the Times article, “particularly at universities and research institutions. Officials from the FBI and the National Security Council have been dispatched to Ivy League universities to warn administrators to be vigilant against Chinese students.”

And according to the Times there are concerns that this witch hunt “is stoking a new red scare, fueling discrimination against students, scientists and companies with ties to China and risking the collapse of a fraught but deeply enmeshed trade relationship between the world’s two largest economies.” (New York Times, July 20, 2019)

FBI criminalizes cancer research

According to a major article in the June 13, 2019, Bloomberg News, “Ways of working that have long been encouraged by the NIH [National Institutes of Health] and many research institutions, particularly MD Anderson [a major cancer treatment center and research institute in Houston], are now quasi-criminalized, with FBI agents reading private emails, stopping Chinese scientists at airports, and visiting people’s homes to ask about their loyalty.

“Xifeng Wu, who has been investigated by the FBI, joined MD Anderson while in graduate school and gained renown for creating several so-called study cohorts with data amassed from hundreds of thousands of patients in Asia and the U.S. The cohorts, which combine patient histories with personal biomarkers such as DNA characteristics and treatment descriptions, outcomes, and even lifestyle habits, are a gold mine for researchers.

“She was branded an oncological double agent.”

The underlying accusation against Chinese scientists in the U.S. is that their research can lead to patentable medicines or cures, which in turn can be sold at enormous profits.

The Bloomberg article continues, “In recent decades, cancer research has become increasingly globalized, with scientists around the world pooling data and ideas to jointly study a disease that kills almost 10 million people a year. International collaborations are an intrinsic part of the U.S. National Cancer Institute’s Moonshot program, the government’s $1 billion blitz to double the pace of treatment discoveries by 2022. One of the program’s tag lines is: ‘Cancer knows no borders.’

“Except, it turns out, the borders around China. In January, Wu, an award-winning epidemiologist and naturalized American citizen, quietly stepped down as director of the Center for Public Health and Translational Genomics at the University of Texas MD Anderson Cancer Center after a three-month investigation into her professional ties in China. Wu’s resignation, and the departures in recent months of three other top Chinese-American scientists from Houston-based MD Anderson, stem from a Trump administration drive to counter Chinese influence at U.S. research institutions. … The collateral effect, however, is to stymie basic science, the foundational research that underlies new medical treatments. Everything is commodified in the economic cold war with China, including the struggle to find a cure for cancer.”

Big surprise. A world famous Chinese epidemiologist, trying to find a cure for cancer, collaborates with scientists in China!

Looking for the ‘reformers’ and the counterrevolution

For decades, the Chinese Communist Party has had changes of leadership every five years. These changes have been stable and managed peacefully. With each changeover, so-called “China experts” in the State Department in Washington think-tanks and U.S. universities have predicted the coming to power of a new “reformist” wing that will deepen capitalist reforms and lay the basis for an eventual full-scale capitalist counterrevolution.

To be sure, there has been a steady erosion of China’s socialist institutions. The “iron rice bowl” which guaranteed a living to Chinese workers has been eliminated in private enterprises. Numerous state factories and enterprises have been sold off to the detriment of the workers, and in the rural areas land was decollectivized.

One of the biggest setbacks for socialism in China and one which truly gladdened the hearts of the prophets of counterrevolution, was the decision by the Jiang Jemin CCP leadership to allow capitalists into the Chinese Communist Party in 2001.

As the New York Times wrote at the time, “This decision raises the possibility of Communists co-opting capitalists — or of capitalists co-opting the party.” (New York Times, Aug. 13, 2001) It was the latter part that the capitalist class has been looking forward to and striving for with fervent anticipation for almost four decades.

But on balance, this capitalist takeover has not materialized. Chinese socialism, despite the capitalist inroads into the economy, has proved far more durable than Washington ever imagined.

And, under the Xi Jinping leadership, the counterrevolution seems to be getting further and further away. It is not that Xi Jinping has become a revolutionary internationalist and a champion of proletarian control. But it has become apparent that China’s status in the world is completely connected to its social and economic planning.

China’s planning and state enterprises overcame 2007-2009 world capitalist crisis

Without state planning in the economy, China might have been dragged down by the 2007-2009 economic crisis. In June 2013, this author wrote an article entitled, “Marxism and the Social Character of China.” Here are some excerpts:

“More than 20 million Chinese workers lost their jobs in a very short time. So what did the Chinese government do?”

The article quoted Nicholas Lardy, a bourgeois China expert from the prestigious Peterson Institute for International Economics and no friend of China. (The full article by Lardy can be found in “Sustaining China’s Economic Growth after the Global Financial Crisis,” Kindle Locations 664-666, Peterson Institute for International Economics.)

Lardy described how “consumption in China actually grew during the crisis of 2008-09, wages went up, and the government created enough jobs to compensate for the layoffs caused by the global crisis,” this author’s emphasis.

Lardy continued: “In a year in which GDP expansion [in China] was the slowest in almost a decade, how could consumption growth in 2009 have been so strong in relative terms? How could this happen at a time when employment in export-oriented industries was collapsing, with a survey conducted by the Ministry of Agriculture reporting the loss of 20 million jobs in export manufacturing centers along the southeast coast, notably in Guangdong Province? The relatively strong growth of consumption in 2009 is explained by several factors.

“First, the boom in investment, particularly in construction activities, appears to have generated additional employment sufficient to offset a very large portion of the job losses in the export sector. For the year as a whole the Chinese economy created 11.02 million jobs in urban areas, very nearly matching the 11.13 million urban jobs created in 2008.

“Second, while the growth of employment slowed slightly, wages continued to rise. In nominal terms wages in the formal sector rose 12 percent, a few percentage points below the average of the previous five years (National Bureau of Statistics of China 2010f, 131). In real terms the increase was almost 13 percent.

“Third, the government continued its programs of increasing payments to those drawing pensions and raising transfer payments to China’s lowest-income residents. Monthly pension payments for enterprise retirees increased by RMB120, or 10 percent, in January 2009, substantially more than the 5.9 percent increase in consumer prices in 2008. This raised the total payments to retirees by about RMB75 billion. The Ministry of Civil Affairs raised transfer payments to about 70 million of China’s lowest-income citizens by a third, for an increase of RMB20 billion in 2009 (Ministry of Civil Affairs 2010).”

Lardy further explained that the Ministry of Railroads introduced eight specific plans, to be completed in 2020, to be implemented in the crisis.

According to Lardy, the World Bank called it “perhaps the biggest single planned program of passenger rail investment there has ever been in one country.” In addition, ultrahigh-voltage grid projects were undertaken, among other advances.

Socialist structures reversed collapse

So income went up, consumption went up and unemployment was overcome in China — all while the capitalist world was still mired in mass unemployment, austerity, recession, stagnation, slow growth and increasing poverty, and still is to a large extent.

The reversal of the effects of the crisis in China is the direct result of national planning, state-owned enterprises, state-owned banking and the policy decisions of the Chinese Communist Party.

There was a crisis in China, and it was caused by the world capitalist crisis. The question was which principle would prevail in the face of mass unemployment — the rational, humane principle of planning or the ruthless capitalist market. In China, the planning principle, the conscious element, took precedence over the anarchy of production brought about by the laws of the market and the law of labor value in the capitalist countries.

Socialism and China’s standing in the world

China has lifted hundreds of millions of people out of poverty. According to a United Nations report, China alone is responsible for the global decline in poverty. China’s universities have graduated millions of engineers, scientists, technicians and have allowed millions of peasants to enter the modern world.

Made in China 2025

In 2015, Xi Jingping and the Chinese CP leadership laid out the equivalent of a ten-year plan to take China to a higher level of technology and productivity in the struggle to modernize the country.

Xi announced a long-range industrial policy backed by hundreds of billions of dollars in both state and private investment to revitalize China. It is named “Made in China 2025” or “MIC25.” It is an ambitious project requiring local, regional and national coordination and participation.

The Mercator Institute for Economics (MERICS) is one of the most authoritative German think tanks on China. It wrote a major report on MIC25 on Feb. 7, 2019. According to MERICS, “The MIC25 program is here to stay and, just like the GDP targets of the past, represents the CCP’s official marching orders for an ambitious industrial upgrading. Capitalist economies around the globe will have to face this strategic offensive.

“The tables have already started to turn: Today, China is setting the pace in many emerging technologies — and watches as the world tries to keep pace.”

The MERICS report continues, “China has forged ahead in fields such as next-generation IT (companies like Huawei and ZTE are set to gain global dominance in the rollout of 5G networks), high-speed railways and ultra-high voltage electricity transmissions. More than 530 smart manufacturing industrial parks have popped up in China. Many focus on big data (21 percent), new materials (17 percent) and cloud computing (13 percent). Recently, green manufacturing and the creation of an “Industrial Internet” were given special emphasis in policy documents, underpinning President Xi Jinping’s vision of creating an ‘ecological civilization’ that thrives on sustainable development.

“China has also secured a strong position in areas such as Artificial Intelligence (AI), new energy and intelligent connected vehicles. …

“Chinese state-owned enterprises (SOEs) continue to play a critical role for the development of strategic industries and high-tech equipment associated with MIC25. In so-called key industries like telecommunications, ship building, aviation and high-speed railways, SOEs still have a revenue share of around 83 percent. In what the Chinese government has identified as pillar industries (for instance electronics, equipment manufacturing, or automotive) it amounts to 45 percent.”

Breakup of U.S.-China relationship inevitable

The tariff war between the U.S. and China has been going back and forth. It may or may not be resolved for now or may end up in a compromise. The Pentagon’s provocations in the South China Sea and the Pacific are unlikely to subside. The witch hunt against Chinese scientists is gaining momentum.

The U.S. has just appropriated $2.2 billion for arms to Taiwan. National Security Adviser and war hawk John Bolton recently made a trip to Taiwan. The president of Taiwan, Tsai Ing-wen, made a recent stopover in the U.S. on the way to the Caribbean and is scheduled to make another one on the way back.

All these measures indicate the end of rapprochement between Beijing and Washington. This breakup between the two powers is not just the doing of Donald Trump. It flows from the growing fear of the predominant sections of the U.S. ruling class that the gamble they took in trying to overthrow Chinese socialism from within has failed, just as the previous military aggression from 1949 to 1975 also failed.

High technology is the key to the future

Since as far back as the end of the 18th century, the U.S. capitalist class has always coveted the Chinese market. The giant capitalist monopolies went charging in to get joint agreements, low wages, cheap exports and big superprofits when China “opened up” at the end of the 1970s.

But the stronger the socialist core of the PRC becomes, the more weight it carries in the world and, above all, the stronger China becomes technologically the more Wall Street fears for its economic dominance and the more the Pentagon fears for its military dominance.

The example of the stifling of international collaboration on cancer research is a demonstration of how global cooperation is essential not only to curing disease, but also to the development of society as a whole. International cooperation is needed to reverse the climate disaster wrought by private property — none of this can be carried out within the framework of private property and the profit system. Only the destruction of capitalism can bring about the liberation of humanity.

Marxism asserts that society advances through the development of the productive forces from primary communism, to slavery, feudalism and capitalism. Marx wrote: “The hand-mill gives you society with the feudal lord; the steam-mill society with the industrial capitalist.” (“The Poverty of Philosophy,” 1847) And now the revolution in high technology lays the basis for international socialism.

The bourgeoisie knows that the society that can advance technology to the highest degree will be triumphant in shaping the future. This is why imperialism, headed by the U.S., imposed the strictest blockade of the flow of technology to the Soviet Union, as well as the Eastern Bloc and China. This was done by COCOM, an informal organization of all the imperialist countries, which was created in 1949 and headquartered in Paris.

The main targets were the USSR and the more industrialized socialist countries, such as the German Democratic Republic, the Czech Republic, etc. Detailed lists were drawn up of some 1,500 technological items that were forbidden to export to these countries.

Marx explained that developed socialist relations depend upon a high degree of the productivity of labor and the resulting abundance available to the population (“Critique of the Gotha Program,” 1875).

However, as Lenin noted, the chain of imperialism broke at its weakest link in Russia — that is, the revolution was successful in the poorest, most backward capitalist country. The result was that an advanced social system was established on an insufficient material foundation. This gave rise to many, many contradictions. The countries that revolutionaries correctly called socialist, were in fact really aspiring to socialism. Their revolutions laid the foundations for socialism. But imperialist blockade, war and subversion never allowed them to freely develop their social systems.

The great leap forward in technology in China today has the potential of raising the productivity of labor and strengthening the socialist foundations. It is this great leap forward that is fueling the “new cold war” with China and the real threat of hot war.

Category : China | Cold War | Hegemony | Trump | Uncategorized | Blog
26
Mar
Inside China’s Internment Camps, Uighur Muslims Stitch US Sportswear

 

By Roland Boer
Stalin’s Moustache Blog

October 2018, Beijing – I begin with a caveat: for more than six months I have not read corporate (sometimes called ‘western’) news sources. Instead, I read more reliable and in-depth sources, for reasons I have explained elsewhere. I find corporate news sources given to selective sensationalism, in which they select a few items, give them a twist and distort them, so as to produce a sensationalist account that does violence with the facts, fits into a certain narrative and attracts a certain readership (some ‘western’ Marxists among them). It is like a toxic drip into the brain, with which I can well do without.

By word of mouth and from reliable sources, I have heard that it has become fashionable in some quarters to switch from the ‘vegetarian between meals’ (Dalai Lama) and focus on the Uyghurs, mostly concentrated in Xinjiang province in the far western parts of China. Supposedly, the whole of the Uyghur minority is kept under what some call a ‘police state’. The reason why is never articulated, except perhaps the inherent evil of the Communist Party of China.

Let us have a look at the facts.

To begin with, there is the simple historical question. Xinjiang was incorporated into the Chinese state in the 1750s and eventually became a full province in 1884, marking the western border of the Chinese state under the Qing. Obviously, Xinjiang has been part of China for centuries.

Further, for some international critics, the claim that radical Muslim Uyghurs are involved in terrorism is a smokescreen for the suppression of the Uyghur. But let us see how selective the terminology of ‘separatism’ and ‘terrorism’ is. From one perspective, the attack on the World Trade Centre in New York in 2001 is ‘terrorist’, while the efforts by some in Tibet and Xinjiang are peaceful and ‘separatist’, seeking independence. In short, any attack on western sites are ‘terrorist’, but any attack in other parts of the world – whether China or Russia or Syria – are ‘separatist’. From another perspective, the attempted suicide attack on a China Southern flight in 2008, threats to attack the Beijing Olympics in 2008, a car ramming in Tiananmen Square in 2013 and the deadly knife attack in Kunming railway station – all perpetrated by Uyghur radical Muslims – are ‘terrorist’ acts. To add a twist to all this, the Chinese government typically uses a three-character phrase, “separatism, extremism and terrorism,” which indicates that they see a continuum and not an either-or relation.

Third, it is clearly not the case that the whole of the Uyghur minority nationality is engaged in separatism, extremism and terrorism. I have encountered a good number of Uyghurs who assert strongly and passionately that they are Chinese and decry the small number of their nationality who engage in terrorist activities. The fact is that a very small number of Uyghurs, influenced by radical Islam, have engaged in terrorist activities. By far the vast majority of Uyghurs see themselves as part of China and seek to contribute positively to it.

Fourth, a crucial feature of Chinese sovereignty is the resistance to all forms of foreign interference. This approach to sovereignty arises from the anti-colonial struggles of the nineteenth and twentieth centuries, in which Chinese independence from semi-colonialism developed a strong sense of the need to prevent foreign intervention. (It also influences China’s dealings with other countries, in which it avoids any effort to change political, economic and social patterns.) Thus, there has been a profoundly negative effect from the CIA’s intervention in Tibet in the 1950s, funding the Dalai Lama and inciting the ill-fated uprising in 1959, in which tens of thousands of Tibetans died and the Dalai Lama and his entourage fled to India. CIA operations wound up in the 1970s, only to be replaced with western propaganda, funding and organisation – especially by the United States’ National Endowment for Democracy that carries on the work of the CIA – of protests in Tibet, all of which are based on a particular interpretation of ‘democracy’ and ‘human rights’. These activities have also focused on Xinjiang, with the added dimension of a distinct increase in influence from Islamic radicalism from further west in the 1990s. The discovery of Uyghurs training with al-Qaeda in Afghanistan, or links with militant groups in restive parts of Pakistan, as well as various radical fronts focused on Xinjiang and passing weapons, explosives and militants along drug routes, made it clear to the Chinese government that another form of foreign interference had arisen. All of these efforts are seen as profound challenges to Chinese sovereignty.

Fifth, it is asserted by some that Uyghurs are subjected to facial recognition cameras, social credit systems and political arrest. Let us set the record straight. Facial recognition cameras, first developed reliably in China (as with so much technological innovation these days) are used for the sake of social security – a fundamental feature of Chinese culture. I am told that some corporate media reports make much of the fining of jaywalkers. This is laughable. If the Chinese devoted their valuable time and energy to this pursuit, billions of fines would be given every day, for the Chinese love to jaywalk. Instead, facial recognition cameras are used for more serious purposes: criminal networks; fugitives from justice; or terrorist cells.

Social credit: the best example is a recent announcement on a high-speed train. The announcement stated that if you had not bought a ticket and did not contact the conductor as soon as possible, it would reflect negatively on your social credit record. In other words, the system is geared to ensuring conformity with the laws of the land.

Arrest for political purposes: this is usually framed in terms of ‘prisoners of conscience’, who are supposedly subjected to ‘brain-washing’ techniques. Again, let us deal with the facts. The fiction that one million Uyghurs are in ‘internment camps’ – spread by dodgy news services – is precisely that, a fiction. China has abolished re-education labour camps, although it could be argued that in certain circumstances (international interference) that they can be a good thing. Instead, a central feature of high-school and university is ‘ideological and political education’. This entails being taught the basics of Marxism, socialism with Chinese characteristics, and now Xi Jinping Thought. All worthwhile subjects that need to be taught well. And all Chinese people – including the 55 minority nationalities and even theological colleges – must study such subjects

Sixth, some sources – such as the ‘Human Rights Watch’ (affiliated with the US state department) trot out a standard ‘western’ approach to ‘human rights’. This tradition typically focuses on civil and political rights, such as freedom of political expression, assembly, religion and so on. In an imperialist move, this specific tradition of human rights is assumed to be universal, applying to all parts of the globe. Because some Uyghurs are denied Muslim practices, expressions of anti-Chinese sentiment, and subjected to ideological and political education, this is deemed to be a violation of ‘human rights’.

The problem here is that such an approach systematically neglects alternative approaches, such as the Chinese Marxist one. This tradition identifies the right to economic wellbeing as the primary human right. So we find that in relation to Xinjiang, Chinese sources have identified the deep root of the problem as poverty. Thus, when unrest in Xinjiang rose to a new level in the 1990s (under foreign influence), much analysis and policy revision followed. The result was two-pronged: an immediate focus on comprehensive security (which is a core feature of Chinese society at many levels); and a long-term effort to improve economic conditions in a region that still lagged behind the much of eastern China. Not all such incentives have been as successful as might have been hoped, with the various nationalities in Xinjiang – not merely Uyghur, but also including Han, Hui, Kazak, Mongol and Kirgiz – benefitting at different levels. The most significant project to date is the massive Belt and Road Initiative, launched in 2014. Although its geographical scope is much vaster than the western parts of China, the economic effect is already being felt in these parts. In light of all this It is reasonable to say that there has been a marked improvement in the economic wellbeing of all those who live in these and other regions, such as Yunnan and Guizhou. The basic position is that if people see that their living conditions have improved, they will more willingly see themselves as part of the greater whole

The outcome: in the short-term the Chinese government has instituted various measures to ensure that the terrorist attacks of 2008, 2013 and 2014 do not happen again. The fact that they have not happened in the last few years is testimony to the effectiveness of these measures. In the long-term, previous policies to develop Xinjiang economically have been assessed and found wanting, so a whole new approach has been developed in terms of the Belt and Road Initiative.

Finally, we should be aware of the deeper level of the ‘preferential policy [youhui zhengce]’ in relation to all of the 55 minority nationalities in China. Since its revision in the 1990s (after careful studies of the breakup of the Soviet Union), the policy has developed two poles of a dialectic. On the one hand, autonomy of the minority nationalities was to be enhanced, in terms of economic progress, language, education, culture and political leadership. On the other hand, China’s borders were strengthened as absolutely inviolable. Secession is simply not an option. A contradiction? Of course, but the sense is that for the vast majority of the nationalities, it is precisely the benefits of increased autonomy that has led them to appreciate being part of China.

Category : China | Marxism | Socialism | Blog
6
Jan

China’s Loose Canon

 

china-old
Qing Dynasty painting depicting Confucius presenting Buddha to Laozi

By Shaun Tan

China-US Focus

Many people are familiar with the Western canon, those core works of literature, history, and philosophy that are considered essential to the study of the subject. In the West, students of literature read Shakespeare and Cervantes, students of history read Herodotus and Thucydides, and students of philosophy read Plato and Aristotle. This canon is considered an integral part of Western civilization, and has shaped thinkers, artists, and statesmen for generations.

Yet few outside China know much about the Chinese canon, a canon that is as rich and valuable as its Western counterpart, that has been revered and reviled at different points in Chinese history, and which may be the key to consolidating the Chinese Communist Party’s authority – or destroying it.

In the field of literature, it includes what’s known as “the four great books,” The Water Margin, The Romance of the Three Kingdoms, The Journey to the West, and Dream of the Red Chamber.

The Water Margin features 108 heroes who, renouncing a corrupt and unjust Song Dynasty, form a band of outlaws and live, Robin Hood-style, in a marsh, righting wrongs and defending the weak in accordance with their own (extremely violent) code of honor. It explores the theme of a just insurgency, with the heroes choosing to serve “the will of heaven” over the Song rule of law.

The Romance of the Three Kingdoms is a historical novel, and follows the breakup of the Han Dynasty into three warring kingdoms. It relates the battles and the intrigues as the three kingdoms vie for supremacy. Its characters show strategic brilliance, nobility, and valor, but also hubris, stupidity, and self-destructive envy, in short, the full spectrum of human nature amidst triumph and disaster.

The Journey to the West is a fantastical account of the monk Tripitaka’s journey to bring Buddhism from India to China, in the company of an anarchic fighting monkey, a lustful pig demon, and a fearsome sand demon, and the adventures they have on the way. The central theme of the comic novel is the tension between temptation and virtue, between passion and discipline, as the heroes strive (or fail) to live up to Buddhist ideals.

The greatest of the four is Dream of the Red Chamber. This novel follows the doomed romance of the protagonist Baoyu with his cousin Daiyu amidst the decline and revival of the illustrious Jia family. Its excellence lies in its execution, in its witty and spirited characters, in its colorful depiction of life inside a great house peopled by relatives and servants and the complex, shifting relations between them. It is a meditation on the meaning of life, as Baoyu is caught between his natural romanticism, the stern Confucianism of his father, and the Buddhist detachment born of suffering and enlightenment. Blurring the lines between reality and illusion, it is a bittersweet tribute to youth and youth’s end.

In the field of history, the Records of the Grand Historian are widely regarded as the greatest classical work of history. Written by Sima Qian, the Records cover over two thousand years of Chinese history. Depicting rulers with all their virtues and vices, it’s the primary means by which we know of many of them today.

The Chinese philosophical canon begins with Confucius. Far from the patron saint of Asian authoritarianism, as he is so often made out to be by opportunistic Asian dictators and clueless Western commentators, Confucius actually counseled balance, reciprocal obligations between ruler and ruled, and integrity in the face of unjust authority.

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Category : China | Intellectuals | Philosophy | Blog
16
Nov

By Roland Boer

Stalin’s Moustache Blog

An article of faith among some ‘Western’ Marxists is that the ‘Great Cultural Revolution’ (1966-76) expressed the core communist position of Mao Zedong, indeed when communism itself began to be realised. Subsequently, the ‘revisionist’ Deng Xiaoping undid Mao’s legacy, engineered an about-turn and set out on the road to capitalism. After all, did not Mao dub him a ‘bourgeois’ and a ‘capitalist roader’? Case closed …

What if this is a misreading of the situation, part of the myopia or narrative of betrayal characteristic of much European-derived historiography?

After some fascinating discussions and much rethinking as a result, I have come to change my mind on this period. I used to argue that the Great Cultural Revolution was a necessary process that shook up China from top to bottom so that the reform and opening up could happen afterwards. I thought this was enough of a challenge to misguided ‘Western’ efforts, but every Chinese person to whom I have mentioned this theory has looked doubtful indeed. Instead, I have come to appreciate the carefully argued position of the vast majority of my Chinese interlocutors. Thus, in his old age Mao lost his way and it was only after the turmoil and destruction of the time that the line he had developed earlier was taken up again. In other words, the continuity was from Mao’s earlier thought, up the early 1960s, to Deng Xiaoping and afterwards. In between was the deviation.

There are a number of ways to understand this proposal.

One is to deploy a conventional communist approach and call it a phase of revisionism or perhaps opportunism. I do not need to go into the details of what revisionism entails, suffice to note that it marks a departure from the main line that had been agreed upon before. So it was with Mao in the mid-1960s. There is some merit to such an argument, since it counters the ‘Western’ claim that Deng Xiaoping was the revisionist. However, the catch with using such a category is that the main line itself shifts depending on the situation, so what counts as ‘revisionist’ also shifts. And it depends on who is deciding what counts as the core, for each side in crucial debates will call each other revisionist.

A second suggestion is that Mao fell into the trap of becoming a quasi-emperor (huangdi). After all, it had barely been more than 50 years earlier that the imperial system itself was finally abolished, a system with a long history indeed in China, with its associated cultural assumptions. Thus, during the Cultural Revolution the deference to Mao, the belief that he could make no mistakes, indeed the ‘faith [xinxin]’ in him all indicate such a development. And there was also the reality that Mao, the revolutionary leader, would not hand over the near solitary power he had attained in his old age until he died.

A third approach is to point out that the ‘warm stream’ of Marxism took over during this time. This is an absolutely necessary feature of Marxism, with its focus on the ‘heart’, on feelings and emotions, on idealism and hope. But it should always be in close connection with the ‘cold stream’, the one of rational and scientific analysis of any situation. At their best, we find such combinations in Marx and Engels, Lenin and Stalin and the communist party the latter two led. And we find it with Mao before the mid-1960s. But after that, the warm stream dominated, revolutionary fervour leapt ahead of careful analysis of the situation, disaster loomed and much suffering ensued.

A fourth suggestion concerns the tension between old and new. A revolutionary movement like communism obviously seeks to abolish the old and replace it with what is new, for otherwise one would not undertake revolutionary action. The problem, however, is how one relates to what has gone before. One side seeks to abolish everything related to the old order: its economics, politics, ideology, culture. After a revolutionary period, one begins completely anew. Another side argues that one cannot simply build from scratch, but one must build on the foundations of the old.

Indeed, all that is best in the old order needs to be taken up and transformed dialectically within the new. This debate raged after the Russian revolution, with Lenin and the Bolsheviks eventually siding with the second approach and one finds it also in its own way in relation to the Chinese revolution. Mao evinces both dimensions in his thoughts and actions. At times, he argues that Marxism cannot be understood without the concrete situation in China, in terms of its long history and its culture – from ‘Confucius to Sun Yat-sen’ he observes in 1938, ‘we must sum it up critically, and we must constitute ourselves the heirs to this precious legacy’. This is the basis for the sinification of Marxism (Makesizhuyi zhongguohua) that would be taken up again after the Cultural Revolution by Deng Xiaoping. Obviously, the period of the Cultural Revolution was a break from this approach, giving vent to Mao’s tendency at times to abolish all that had gone before.

A fifth angle is to point out that Mao lost sight of some of his crucial earlier insights. I think in particular of the category of ‘non-contradictory contradictions [feiduikangxing maodun]’. Mao picked up this idea from Soviet debates during the intense period of study at Yan’an in the 1930s. The Soviet communists had begun developing the idea to deal with the question of contradictions under socialism. Mao seized upon it in his lectures on dialectical materialism at the time and it became the final section of his crucial essay ‘On Contradiction’. Why? The idea of non-antagonistic contradictions connected with a long tradition in Chinese philosophy, which gave Mao the opportunity to develop the theoretical foundations of sinified Marxism. Twenty years later, he developed the idea much further in the essay, ‘On Correctly Handling Contradictions Among the People’. Here he pointed out that contradictions under socialism would certainly continue, but they need to be addressed so that they do not become antagonistic and lead to struggle and conflict. This essay appeared in 1957, after the revolution and in the early stage of beginning to construct socialism. However, a decade later he clearly forgot this key insight, instigating antagonistic contradictions in the name of inner-party class struggle.

As I mentioned at the beginning, these different angles – which are not mutually exclusive – arose from a series of intense and very open discussions about the Cultural Revolution. And I have found that it a very rare person indeed in China who wishes to defend Mao’s mistake in his last years.

Perhaps Xi Jinping expressed it best in 2013: ‘Revolutionary leaders are not gods, but human beings. We cannot worship them like gods or refuse to allow people to point out and correct their errors just because they are great; neither can we totally repudiate them and erase their historical feats just because they made mistakes’.
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Roland Boer is Xin Ao Professor of Literature at Renmin University of China and research professor at the University of Newcastle, Australia, and the author of numerous books.
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Category : China | Marxism | Blog
19
Jan

Keynote Speech by H.E. Xi Jinping

President of the People’s Republic of China

At the Opening Session

Of the World Economic Forum Annual Meeting 2017

Davos, 17 January 2017


President Doris Leuthard and Mr. Roland Hausin,


Heads of State and Government, Deputy Heads of State and Your Spouses,


Heads of International Organizations,


Dr. Klaus Schwab and Mrs. Hilde Schwab,


Ladies and Gentlemen,


Dear Friends,


I’m delighted to come to beautiful Davos. Though just a small town in the Alps, Davos is an important window for taking the pulse of the global economy. People from around the world come here to exchange ideas and insights, which broaden their vision. This makes the WEF annual meeting a cost-effective brainstorming event, which I would call “Schwab economics”.


“It was the best of times, it was the worst of times.” These are the words used by the English writer Charles Dickens to describe the world after the Industrial Revolution. Today, we also live in a world of contradictions. On the one hand, with growing material wealth and advances in science and technology, human civilization has developed as never before. On the other hand, frequent regional conflicts, global challenges like terrorism and refugees, as well as poverty, unemployment and widening income gap have all added to the uncertainties of the world.


Many people feel bewildered and wonder: What has gone wrong with the world?


To answer this question, one must first track the source of the problem. Some blame economic globalization for the chaos in the world. Economic globalization was once viewed as the treasure cave found by Ali Baba in The Arabian Nights, but it has now become the Pandora’s box in the eyes of many. The international community finds itself in a heated debate on economic globalization.


Today, I wish to address the global economy in the context of economic globalization.


The point I want to make is that many of the problems troubling the world are not caused by economic globalization. For instance, the refugee waves from the Middle East and North Africa in recent years have become a global concern. Several million people have been displaced, and some small children lost their lives while crossing the rough sea. This is indeed heartbreaking. It is war, conflict and regional turbulence that have created this problem, and its solution lies in making peace, promoting reconciliation and restoring stability. The international financial crisis is another example. It is not an inevitable outcome of economic globalization; rather, it is the consequence of excessive chase of profit by financial capital and grave failure of financial regulation. Just blaming economic globalization for the world’s problems is inconsistent with reality, and it will not help solve the problems.


From the historical perspective, economic globalization resulted from growing social productivity, and is a natural outcome of scientific and technological progress, not something created by any individuals or any countries. Economic globalization has powered global growth and facilitated movement of goods and capital, advances in science, technology and civilization, and interactions among peoples.


But we should also recognize that economic globalization is a double-edged sword. When the global economy is under downward pressure, it is hard to make the cake of global economy bigger. It may even shrink, which will strain the relations between growth and distribution, between capital and labor, and between efficiency and equity. Both developed and developing countries have felt the punch. Voices against globalization have laid bare pitfalls in the process of economic globalization that we need to take seriously.


As a line in an old Chinese poem goes, “Honey melons hang on bitter vines; sweet dates grow on thistles and thorns.” In a philosophical sense, nothing is perfect in the world. One would fail to see the full picture if he claims something is perfect because of its merits, or if he views something as useless just because of its defects. It is true that economic globalization has created new problems, but this is no justification to write economic globalization off completely. Rather, we should adapt to and guide economic globalization, cushion its negative impact, and deliver its benefits to all countries and all nations.


There was a time when China also had doubts about economic globalization, and was not sure whether it should join the World Trade Organization. But we came to the conclusion that integration into the global economy is a historical trend. To grow its economy, China must have the courage to swim in the vast ocean of the global market. If one is always afraid of bracing the storm and exploring the new world, he will sooner or later get drowned in the ocean. Therefore, China took a brave step to embrace the global market. We have had our fair share of choking in the water and encountered whirlpools and choppy waves, but we have learned how to swim in this process. It has proved to be a right strategic choice.


Whether you like it or not, the global economy is the big ocean that you cannot escape from. Any attempt to cut off the flow of capital, technologies, products, industries and people between economies, and channel the waters in the ocean back into isolated lakes and creeks is simply not possible. Indeed, it runs counter to the historical trend.


The history of mankind tells us that problems are not to be feared. What should concern us is refusing to face up to problems and not knowing what to do about them. In the face of both opportunities and challenges of economic globalization, the right thing to do is to seize every opportunity, jointly meet challenges and chart the right course for economic globalization.


At the APEC Economic Leaders’ Meeting in late 2016, I spoke about the necessity to make the process of economic globalization more invigorated, more inclusive and more sustainable. We should act pro-actively and manage economic globalization as appropriate so as to release its positive impact and rebalance the process of economic globalization. We should follow the general trend, proceed from our respective national conditions and embark on the right pathway of integrating into economic globalization with the right pace. We should strike a balance between efficiency and equity to ensure that different countries, different social strata and different groups of people all share in the benefits of economic globalization. The people of all countries expect nothing less from us, and this is our unshirkable responsibility as leaders of our times. 


Ladies and Gentlemen, Dear Friends,


At present, the most pressing task before us is to steer the global economy out of difficulty. The global economy has remained sluggish for quite some time. The gap between the poor and the rich and between the South and the North is widening. The root cause is that the three critical issues in the economic sphere have not been effectively addressed.


First, lack of robust driving forces for global growth makes it difficult to sustain the steady growth of the global economy. The growth of the global economy is now at its slowest pace in seven years. Growth of global trade has been slower than global GDP growth. Short-term policy stimuli are ineffective. Fundamental structural reform is just unfolding. The global economy is now in a period of moving toward new growth drivers, and the role of traditional engines to drive growth has weakened. Despite the emergence of new technologies such as artificial intelligence and 3D printing, new sources of growth are yet to emerge. A new path for the global economy remains elusive.


Second, inadequate global economic governance makes it difficult to adapt to new developments in the global economy. Madame Christine Lagarde recently told me that emerging markets and developing countries already contribute to 80% of the growth of the global economy. The global economic landscape has changed profoundly in the past few decades. However, the global governance system has not embraced those new changes and is therefore inadequate in terms of representation and inclusiveness. The global industrial landscape is changing and new industrial chains, value chains and supply chains are taking shape. However, trade and investment rules have not kept pace with these developments, resulting in acute problems such as closed mechanisms and fragmentation of rules. The global financial market needs to be more resilient against risks, but the global financial governance mechanism fails to meet the new requirement and is thus unable to effectively resolve problems such as frequent international financial market volatility and the build-up of asset bubbles.


Third, uneven global development makes it difficult to meet people’s expectations for better lives. Dr. Schwab has observed in his book The Fourth Industrial Revolution that this round of industrial revolution will produce extensive and far-reaching impacts such as growing inequality, particularly the possible widening gap between return on capital and return on labor. The richest one percent of the world’s population own more wealth than the remaining 99 percent. Inequality in income distribution and uneven development space are worrying. Over 700 million people in the world are still living in extreme poverty. For many families, to have warm houses, enough food and secure jobs is still a distant dream. This is the biggest challenge facing the world today. It is also what is behind the social turmoil in some countries.


All this shows that there are indeed problems with world economic growth, governance and development models, and they must be resolved. The founder of the Red Cross Henry Dunant once said, “Our real enemy is not the neighboring country; it is hunger, poverty, ignorance, superstition and prejudice.” We need to have the vision to dissect these problems; more importantly, we need to have the courage to take actions to address them.

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Category : Capitalism | China | Globalization | Infrastructure | Socialism | Blog
22
Dec

China working with Africa on Infrastructure

By George Koo

China-US Focus

Dec 22, 2016 – Now that Donald Trump has won the U.S. election to become the 45th president, everybody is offering his/her idea of how Trump will make good on his promise to make America great again. He does have the opportunity to make policies free from the burdens of the past.During his rough and tumble campaign, he expressed some ideas worth noting. He seemed weary of having the U.S. carry the sole burden of basing troops around the world, and he said more than once that he wanted to find ways to get along with other nations.


He also reiterated on numerous occasions that he would transform America’s infrastructure into the best in the world. With careful examination, these two positions could represent real cornerstones toward making America great again.


Importance of infrastructure investments


Once the best in the world when these investments were made in the ‘50s and ‘60s, everybody now recognizes that America’s infrastructure is badly in need of repair and replacement. The question has come up many times but there has been a lack of Congressional will and consensus to allocate the necessary funds. With a Republican majority in both houses, Trump would have the best opportunity to get something done.


Lest there are any doubts, the lead-tainted drinking water of Flint Michigan and the Minneapolis bridge collapse serve as stark reminders that infrastructure improvement is a real and urgent issue. According to the EPA, the U.S. will need $384 billion investments for the drinking water treatment and distribution to remedy the situation in places like Flint and to prevent future tragedies in other economically blighted areas of America.


There are 700 bridges in the U.S. in the same category as the bridge outside of Minneapolis that collapsed that are potential candidates for retrofit or replacement in order to prevent another rush hour collapse. The bridge in Minneapolis cost well over $200 million to replace. Thus the total potential tab to assure the safety of all the bridges would be in the ballpark of $100 billion plus depending on the actual number in need of remediation.


Trump did say as part of his acceptance speech, “We are going to fix our inner cities, and rebuild our highways, bridges, tunnels, airports, schools, hospitals. We’re going to rebuild our infrastructure, which will become, by the way, second to none. And we will put millions of our people to work as rebuild it.”


Trump hasn’t said exactly how he will find the funds to invest. There is a real solution that does not require pulling the wool over the public’s eye and that would be via reallocation of resources by changing national priorities.


Trump’s “get along” foreign policy


Again referring to his acceptance speech, he said, “At the same time we will get along with all other nations willing to get along with us. We will have great relationships…We will deal fairly with everyone. All people and all other nations. We will seek common ground not hostility, partnership not conflict.”


Taken at face value, Trump’s position could represent a sharp and refreshing departure from the disastrous foreign policy of his two predecessors.

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Category : Africa | China | Infrastructure | Trump | Blog
7
May

Chinese worker inspecting solar panels

Marxism offers tool to address contemporary ecological crises

By Niu DongJie, Ming Haiying

Chinese Social Sciences Today

May 6, 2016

Zhang Yunfei was born in 1963 in Fengzhen City, Inner Mongolia Autonomous Region. He attended Renmin University of China, where he earned a doctorate in philosophy. Currently, he is a professor at the university’s School of Marxism Studies and a doctoral supervisor in basic principles of Marxism.


The concept of ecological Marxism emerged in the mid-20th century as theorists sought to transcend the capitalist system while resolving mankind’s conflict with nature and realizing true human freedom. A reporter from Chinese Social Sciences Today (CSST) sat down with Zhang Yunfei to talk about ecological Marxism and how it can be applied in a contemporary context to realize sustainable social development.

CSST: What are the connections between the ecological Marxism and Marxism?

Zhang: The connections between the two are viewed from three perspectives.

Some see ecological Marxism as orthodox Marxism. Based on Marxist texts and the history of the discipline, some theorists tried to explore the resources involving ecological thought in Marxism and established a framework of ecological thinking within Marxism. Marxism thus can serve to solve ecological issues.

Others view it as revisionary Marxism. Some scholars thought that Marxism didn’t offer solutions to the issue of “alienated consumption,” which is the cause of ecological crisis. Therefore, a view on ecological issues should be supplementary to Marxism. Other scholars contended that Marxism only dealt with the first contradiction—between productive forces and productive relations—while neglecting the contradiction between them and production conditions, but the second contradiction is the source of ecological crisis.

Hence, the second contradiction became the starting point for ecological Marxism. In fact, Marx and Engels have touched upon these issues. They just didn’t give a clear and detailed explanation of them. To introduce an ecological approach is a revision of Marxism, but the theory is not necessarily “revisionism.”

The third perspective is that ecological Marxism is an innovation of Marxism. After examining the ecological dilemmas facing mankind, some scholars have proposed various theoretical schemas and practical plans to resolve ecological problems and strive for sustainable development, sticking to the stance  of Marxism while combining the viewpoints and methods of Marxism with practice in environment protection. In this way, the ecological thinking in Marxism can be enriched and developed.

CSST: Can ecological problems be radically solved through ecological Marxism?

Zhang: In terms of the means of production, ecological Marxism opposes private ownership, especially capitalist private ownership. American scholar Joel Kovel criticized the neoliberalism preached by advocates of the “Tragedy of the Commons” theory. For the purposes of production, John Bellamy Foster, author of Marx’s Ecology, argued that basic needs and long-term environmental protection should be emphasized. When it comes to distribution, Foster held that only by adhering to “environmental equality” can environmental movements avoid becoming alienated from the working class, who stand firm against capitalism in terms of the means of production. James O’Connor argued that the essence of bourgeois justice is “distributive justice,” while productive justice is the aim of ecological socialism.

Ecological Marxism replaces capitalism with socialism as an economic model, which facilitates the ultimate solution of ecological problems. Only by adhering to the notion of popular sovereignty can the ecological transformation of society be achieved.

As for a cultural model, ecological Marxism sees the impact of culture reforms on harmony between humans and nature. Mechanistic thinking, a major factor that leads to ecological problems, should be converted to ecological thinking. Kovel held that to have an ecological understanding is to recognize the fact that humans are part of nature and inseparable from their environment. In terms of values, Foster pointed out that the perspective should be people oriented and focused on poor people in particular. Kovel argued that justice is essential to the mission of liberating the workforce and relieving ecological crisis.

As for social models, ecological Marxism has observed the severity of ecological crisis brought by high consumption in capitalist consumer society, and thus calls for reasonable and ecological consumption. In addition, as the basic unit of society and life, communities directly affect the efficiency of ecological management. Therefore, ecological Marxism emphasizes community and advocates community justice. However, some eco-socialists equte community with anarchism, which should be dealt with based on special cases.

Socialist environmentalist Fred Magdoff put forth a general model for “harmony culture.” “Harmony culture is equal to socialism plus the economic goal of meeting the basic needs of humanity while protecting the environment plus equality in essence plus simplicity in life.” This model is quite inspiring for the establishment of a sound ecological system in socialist society.

CSST: Does ecological Marxism face any limitations or dilemmas in theory and in practice?

Zhang: There are several problems facing the development of Marxism. First, Marxist philosophical ontology is not unified or clear. Realizing this, Kovel introduced the concept of “intrinsic value” of eco-centrism into Marxism, contending that ecological Marxism refers to achieving intrinsic value through a socialist means. However, eco-centrism belongs to the realm of green thought, which does not involve politics, whereas ecological Marxism pertains to red thought, which is dedicated to political issues. Therefore, there are theoretical and political barriers to integrating the two concepts. In addition, issues concerning ecological Marxism are mostly debated using historical materialism, while dialectics of nature are seldom referenced.

Second, emphasis should be placed on constructing a sound ecological system in China. The perception of ecological civilization, the creation of Marxism in a Chinese context, is an innovative development in Marxist ecological thought. Socialist ecological construction in China is an innovation to achieve  this goal. Therefore, as Chinese scholars need Marxism as guiding principle, ecological Marxism need to be devoted to Chinese practices. “Organic Marxism” recently proposed by some American scholars highlighted the construction of socialist ecological civilization in China.

CSST: What efforts should be made to promote Marxist ecology studies in China?

Zhang: First, most research on ecological Marxism centers on the thoughts of representative figures, while not many touched on introducing general theoretical logic and contributions. Therefore, what we need now is a comprehensive comparative research perspective and an overall grasp of ecological Marxism to find out its significance relative to global Marxism as a whole.

Second, past research was mostly concerned with the theoretical contributions of ecological Marxism, but more attention should be paid to praxis. Future research worthy of investigation includes ecological Marxism and the Western environment movement, the relationship between environmental NGOs and the Green Party, and whether these NGOs have driven the ecological management in the West to effectively prevent ecological damage caused by capitalism. It is essential to introduce the fruits of ecological Marxism into Chinese practice while pondering the role ecological Marxism has played in global ecological management.

Of course, we must consider all the difficulties and disadvantages facing ecological Marxism. The construction of an ecological society should be promoted by running with rather than nitpicking the theory.


link:

The origins of ecological Marxism can be traced to O’Connor’s (1988) article, “Capitalism, Nature, Socialism: A Theoretical Introduction,” which he wrote as an introduction to the new journal he founded, “Capitalism, Nature, Socialism: A Journal of Socialist Ecology.” In setting up this argument, O’Connor referred to the 1944 book, The Great Transformation, by Karl Polanyi, who O’Connor notes examined the ways in which capitalism destroys nature as one of its inherent contradictions. Polanyi’s works point out that there are limits to economic growth attached to ecological factors, an idea that resurfaced in the 1970s in limits to growth arguments. Those ecological limits to growth are the factors that impede the relentless effort of capital to grow, and present a barrier to the ideological claim of capitalism regarding limitless growth potential.

As an economist, O’Connor well understood the traditional Marxist arguments about economic crisis and the forms in which those crises appear under capitalism. Previously, he had made significant contributions to that literature. In proposing an ecological Marxism, O’Connor sought to move beyond traditional crisis theories of capitalism (e.g., under consumption, over production, the realization of surplus value, the tendency of the rate of profit to fall, the extension of credit, wage deflation, etc.,.). While these issues remain important and useful to ecological Marxism, ecological Marxism directs its attention to the “capitalization of nature.” Part of that view relates to the ways in which the distribution of ownership in capitalist society affects access to nature and its raw materials and forces access to raw materials to become class linked. Another important aspect of this argument involves the ways in which capitalism produces adverse ecological conditions that threaten its stability along with the stability of nature.

—An excerpt from a online databse Green Criminology, by Michael J. Lynch, University of South Florida

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Niu DongJie and Ming Haiying are reporters at the Chinese Social Sciences Today.

Category : China | Green Economy | Blog
23
Apr

Editor’s Note: We are quite aware that the author below is no Marxist. But his views on world affairs are always interesting, and have recently been taken seriously by both Obama and Sanders, but not Clinton. So with more than a grain of salt, he’s worth a read.

By Zbigniew Brzezinski

The American Interest

April 17, 2016 – As its era of global dominance ends, the United States needs to take the lead in realigning the global power architecture.

Five basic verities regarding the emerging redistribution of global political power and the violent political awakening in the Middle East are signaling the coming of a new global realignment.

The first of these verities is that the United States is still the world’s politically, economically, and militarily most powerful entity but, given complex geopolitical shifts in regional balances, it is no longer the globally imperial power. But neither is any other major power.

The second verity is that Russia is experiencing the latest convulsive phase of its imperial devolution. A painful process, Russia is not fatally precluded – if it acts wisely – from becoming eventually a leading European nation-state. However, currently it is pointlessly alienating some of its former subjects in the Islamic southwest of its once extensive empire, as well as Ukraine, Belarus, and Georgia, not to mention the Baltic States.

The third verity is that China is rising steadily, if more slowly as of late, as America’s eventual coequal and likely rival; but for the time being it is careful not to pose an outright challenge to America. Militarily, it seems to be seeking a breakthrough in a new generation of weapons while patiently enhancing its still very limited naval power.

The fourth verity is that Europe is not now and is not likely to become a global power. But it can play a constructive role in taking the lead in regard to transnational threats to global wellbeing and even human survival. Additionally, Europe is politically and culturally aligned with and supportive of core U.S. interests in the Middle East, and European steadfastness within NATO is essential to an eventually constructive resolution of the Russia-Ukraine crisis.

The fifth verity is that the currently violent political awakening among post-colonial Muslims is, in part, a belated reaction to their occasionally brutal suppression mostly by European powers. It fuses a delayed but deeply felt sense of injustice with a religious motivation that is unifying large numbers of Muslims against the outside world; but at the same time, because of historic sectarian schisms within Islam that have nothing to do with the West, the recent welling up of historical grievances is also divisive within Islam.

Taken together as a unified framework, these five verities tell us that the United States must take the lead in realigning the global power architecture in such a way that the violence erupting within and occasionally projected beyond the Muslim world—and in the future possibly from other parts of what used to be called the Third World—can be contained without destroying the global order. We can sketch this new architecture by elaborating briefly each of the five foregoing verities.

First, America can only be effective in dealing with the current Middle Eastern violence if it forges a coalition that involves, in varying degrees, also Russia and China. To enable such a coalition to take shape, Russia must first be discouraged from its reliance on the unilateral use of force against its own neighbors—notably Ukraine, Georgia, the Baltic States—and China should be disabused of the idea that selfish passivity in the face of the rising regional crisis in the Middle East will prove to be politically and economically rewarding to its ambitions in the global arena. These shortsighted policy impulses need to be channeled into a more farsighted vision.

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Category : China | Globalization | Hegemony | Middle East | Russia | Blog