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,
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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China working with Africa on Infrastructure
By George Koo
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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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.
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
Niu DongJie and Ming Haiying are reporters at the Chinese Social Sciences Today.
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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.
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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By Fu Ying
Chair of the Foreign Affairs Committee of China’s National People’s Congress.
Dec 18, 2015 –CRI Online
At a time when Russian relations with the United States and western European countries are growing cold, the relatively warm ties between China and Russia have attracted renewed interest. Scholars and journalists in the West find themselves debating the nature of the Chinese-Russian partnership and wondering whether it will evolve into an alliance.
Since the end of the Cold War, two main views have tended to define Western assessments of the Chinese-Russian relationship and predictions of its future. The first view holds that the link between Beijing and Moscow is vulnerable, contingent, and marked by uncertainties—a “marriage of convenience,” to use the phrase favored by many advocates of this argument, who see it as unlikely that the two countries will grow much closer and quite possible that they will begin to drift apart. The other view posits that strategic and even ideological factors form the basis of Chinese-Russian ties and predicts that the two countries—both of which see the United States as a possible obstacle to their objectives—will eventually form an anti-U.S., anti-Western alliance.
Neither view accurately captures the true nature of the relationship. The Chinese-Russian relationship is a stable strategic partnership and by no means a marriage of convenience: it is complex, sturdy, and deeply rooted. Changes in international relations since the end of the Cold War have only brought the two countries closer together. Some Western analysts and officials have speculated (and perhaps even hoped) that the ongoing conflicts in Syria and Ukraine, in which Russia has become heavily involved, would lead to tensions between Beijing and Moscow—or even a rupture. But that has not happened.
Nevertheless, China has no interest in a formal alliance with Russia, nor in forming an anti-U.S. or anti-Western bloc of any kind. Rather, Beijing hopes that China and Russia can maintain their relationship in a way that will provide a safe environment for the two big neighbors to achieve their development goals and to support each other through mutually beneficial cooperation, offering a model for how major countries can manage their differences and cooperate in ways that strengthen the international system.
TIES THAT BIND
On several occasions between the end of the nineteenth century and the middle of the twentieth century, China entered into an alliance with the Russian empire and its successor, the Soviet Union. But every time, the arrangement proved short-lived, as each amounted to nothing more than an expediency between countries of unequal strength. In the decades that followed, the two powerful communist-led countries muddled through, occasionally cooperating but often riven by rivalry and mistrust. In 1989, in the waning years of Soviet rule, they finally restored normalcy to their relations. They jointly declared that they would develop bilateral relations based on “mutual respect for sovereignty and territorial integrity, mutual nonaggression, noninterference in each other’s internal affairs, equality and mutual benefit, and peaceful coexistence.” Two years later, the Soviet Union disintegrated, but Chinese-Russian relations carried on with the principle of “no alliance, no conflict, and no targeting any third country.”
Soon thereafter, the newborn Russian Federation embraced the so-called Atlanticist approach. To win the trust and help of the West, Russia not only followed Western prescriptions for economic reform but also made concessions on major security issues, including reducing its stockpile of strategic nuclear weapons. However, things didn’t turn out the way the Russians had hoped, as the country’s economy tanked and its regional influence waned. In 1992, disappointed with what they saw as unfulfilled pledges of American and European assistance and irritated by talk of NATO’s eastward expansion, the Russians began to pay more attention to Asia. That year, China and Russia announced that each would regard the other as a “friendly country” and issued a joint political statement stipulating that “the freedom of people to choose their own development paths should be respected, while differences in social systems and ideologies should not hamper the normal progress of relations.”
Ever since, Chinese-Russian relations have gradually improved and deepened. During the past 20 years or so, bilateral trade and investment have expanded on a massive scale. In 2011, China became Russia’s largest trading partner. In 2014 alone, China’s investment in Russia grew by 80 percent—and the trend toward more investment remains strong. To get a sense of the growth in economic ties, consider that in the early 1990s, annual bilateral trade between China and Russia amounted to around $5 billion; by 2014, it came close to $100 billion. That year, Beijing and Moscow signed a landmark agreement to construct a pipeline that, by 2018, will bring as much as 38 billion cubic meters of Russian natural gas to China every year. The two countries are also planning significant deals involving nuclear power generation, aerospace manufacturing, high-speed rail, and infrastructure development. Furthermore, they are cooperating on new multinational financial institutions, such as the Asian Infrastructure Investment Bank, the New Development Bank BRICS, and the BRICS foreign exchange reserve pool.
Meanwhile, security ties have improved as well. China has become one of the largest importers of Russian arms, and the two countries are discussing a number of joint arms research-and-development projects. Extensive Chinese-Russian defense cooperation involves consultations between high-level military personnel and joint training and exercises, including more than a dozen joint counterterrorism exercises during the past decade or so, carried out either bilaterally or under the auspices of the Shanghai Cooperation Organization. In the past 20 years, thousands of Chinese military personnel have studied in Russia, and many Russian military officials have received short-term training at the National Defense University of China.
As economic and military links have strengthened, so, too, have political ones. In 2008, China and Russia were able to peacefully resolve territorial disputes that had troubled relations for decades, formally demarcating their 2,600-mile-plus border and thus eliminating their single largest source of tension—a rare achievement for big neighbors. In recent years, the two countries have held regular annual meetings between their heads of states, prime ministers, top legislators, and foreign ministers. Since 2013, when Xi Jinping became president of China, he has paid five visits to Russia, and Russian President Vladimir Putin has traveled three times to China in the same time period. All told, Xi and Putin have met 12 times, making Putin the foreign head of state whom Xi has met most frequently since assuming the presidency.
For all this progress, differences still exist between the two neighbors, and they don’t always share the same focus when it comes to foreign policy. Russia is traditionally oriented toward Europe, whereas China is more concerned with Asia. The two countries’ diplomatic styles differ as well. Russia is more experienced on the global theater, and it tends to favor strong, active, and often surprising diplomatic maneuvers. Chinese diplomacy, in contrast, is more reactive and cautious.
China’s rise has produced discomfort among some in Russia, where some people have had difficulty adjusting to the shift in relative power between China and Russia. There is still talk in Russia of “the China threat,” a holdover expression from past eras. A poll conducted in 2008 by Russia’s Public Opinion Foundation showed that around 60 percent of Russians were concerned that Chinese migration to Far Eastern border areas would threaten Russia’s territorial integrity; 41 percent believed that a stronger China would harm Russian interests. And as China’s quest for new investment and trade opportunities abroad has led to increased Chinese cooperation with former Soviet states, Russians have worried that China is competing for influence in their neighborhood. Partly as a result, Moscow initially hesitated to support Beijing’s Silk Road Economic Belt initiative before ultimately embracing it in 2014. Meanwhile, some Chinese continue to nurse historical grievances regarding Russia. Despite the resolution of the border issue, Chinese commentators sometimes make critical references to the nearly 600,000 square miles of Chinese territory that tsarist Russia annexed in the late nineteenth century.
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By Zhang Yu
Chinese Social Sciences Today
March 3, 2015 – Since reform and opening-up, China has succeeded in taking the new path of socialist economic development with Chinese characteristics. The vigor and vitality of the Chinese economy has attracted the attention of the world. However, there are various opinions about how to summarize the experience and significance of China’s economic reform and development.
In recent years, a new dogmatic thought has been in vogue in economics. It claims that there is only one type of economics all over the world: Western mainstream economics. This model, it is held, is a universal science without borders, like natural science, and is a general principle that China’s economic reform and development must follow.
Dominated by such a logic, a version of the mainstream economics on the Chinese experience has been formed: the Chinese experience, at best, is “transition economics,” which is a form of transition to capitalist standard market economy and has no universal significance of economics. Achievements of the Chinese economy are owed to the effective application of these “general principles,” such as developing the private economy, free markets and the opening-up to the outside world.
Problems with the Chinese economy are attributed to deviation from these “general principles,” such as retaining the state economy, government intervention and independence, which will bring about the collapse of the Chinese economy sooner or later if they are not completely resolved. Suffice to say all elements that don’t conform to the standard patterns of mainstream economics are considered to have deviated from and distorted “general principles.” However, this idea is quite wrong and harmful.
We may learn from modern Western economics, which is universal since it reflects the motion law of the market economy to some extent. Meanwhile, it is specific. There are different schools of Western economics as well as different mainstream theories in different eras and countries.
Take neoclassical economics currently viewed as the Western mainstream, for example. It has been widely criticized by other schools of economics. It is thought to emphasize logic and neglect history, deny differences between people’s behaviors in different social systems and historical conditions, and exclude the influence of complex factors, such as technology, politics and culture.
By Yang Chungui
Translated by Jiang Yajuan and Zhang Hongyan, from Zhongguo shehui kexue, 2000, no. 1 Revised by Yu Sheng and Su Xuetao
January 9 2012
Tremendous changes have taken place in the history of mankind during the twentieth century. In the first half of the century socialism shocked the world with its great successes over large areas of the earth. However, in the final years of the century its setbacks also astounded the world, especially its failure in the Soviet Union and Eastern Europe. These great changes raised the question of the future and destiny of socialism.
In view of the ecstatic response of Western hostile forces to the "grand failure of communism," and the pessimism of those who once believed in socialism, Deng Xiaoping said categorically, "After a long time, socialism will necessarily supersede capitalism. This is an irreversible general trend of historical development…..Some countries have suffered major setbacks, and socialism appears to have been weakened. But the people have been tempered by the setbacks and have drawn lessons from them, and that will make socialism develop in a healthier direction."[i] This conclusion has been borne out by the successful practice of socialism with Chinese characteristics in China and will be further borne out in the coming century by socialist practice throughout the world, including that in China.
I. Socialism Is a Historical Process With Twist and Turns in Its Development
Dialectical materialism tells us that things develop with a combination of progress and reverses. The general trend in towards progress and development, but the road is full of twists and turns. This is the case in the natural world and also in social life. Every new social system undergoes numerous difficulties during its birth and development. Capitalism was finally substituted for feudalism after 48 years of struggle against the restoration of feudalism in Britain, and 86 years of repeated trails of strength in France. It took two to three hundred years for capitalism as a whole to grow from its infancy to a mature stage amidst continuous economic and political crises. This was the case in the development of capitalism, in which a new form of exploitation replaced the old, let alone the socialist movement that will destroy all systems of exploitation. It is entirely impractical to expect socialism to enjoy a favorable wind all the way and encounter no resistance.
Socialism has experience many setbacks and low ebbs, but the general trend towards socialism replacing capitalism has never changed. During the more than 150 years since the appearance of the theory of scientific socialism, it has developed from the conception of revolutionary teachers into the guiding principle of the workers’ movement all over the world, from theory into practice, and from the practice in one country into that in many countries, presenting a constantly growing dynamic movement. It is inevitable that there will be local reverses and temporary low tides or even reverses during this process. Marxists who keep a clear head with regard to the development law of human society do not feel puzzled by these outward phenomena, but unswervingly believe in the final victory of socialism and communism, and face the harsh realities with high morale, calmly taking up the gauntlet.
In 1987 during the Paris Commune uprising, Karl Marx scientifically predicted that, "whatever therefore its fate in Paris, it will make le tour du monde."[ii] More than forty years later, the victory of the October Revolution in Russia confirmed Marx’s brilliant foresight. When the first socialist country in the world faced grave crises due to armed intervention from fourteen imperialist states, in addition to domestic rebellion, Lenin firmly pointed out that, "Only a proletarian socialist revolution can lead humanity out of the impasse which imperialism and imperialist wars have created. Whatever difficulties the revolution may have to encounter, whatever possible temporary setbacks or waves of counter-revolution it may have to contend with, the final victory of the proletariat is inevitable."[iii] The revolutionary road followed by the Chinese people was even more difficult and convoluted. In the 28 years before the founding of the People’s Republic of China, the Chinese democratic revolution suffered repeated setbacks and failures. On 12 April 1927, Jiang Jieshi staged a bloody coup d’etat against the revolution and threw the Chinese people into bloodshed. But the Communist Party of China (CPC) and the Chinese people were neither cowed, conquered nor exterminated. They picked themselves up, wiped off the blood, buried their fallen comrades and went into battle again. Furthermore, they learned to use armed revolution against armed counterrevolution and went to the countryside to build rural base areas. In the beginning, in the face of a very powerful enemy, some people asked: "How long will the red flag fly?" With foresight comrade Mao Zedong pointed out that, "A single spark can start a prairie fire." But the prairie fire also experienced many ups and downs and, particularly the last days of the land revolution, Wang Ming’s "Left error led to the loss of 90 per cent of the Party and revolutionary forcers in the base areas and an almost complete loss in the Guomindang-controlled areas. However, after the Red Army arrived in northern Shaanxi, the CPC summed up its experiences and lessons learned and went on to defeat all its enemies and win the final victory of the democratic revolution.
The road to socialist construction was equally uneven. In addition to minor upheavals, there were two events of major significance; the three-years Great Leap Forward beginning in 1958, and the ten-year "cultural revolution" beginning in 1966. These errors caused enormous losses and led to grave crises in China. However, after the Third Session of the Eleventh Central Committee of the CPC we became more mature and initiated a new phase of constructing socialism with Chinese characteristics. History is a mirror and tells us that no matter how difficult the situation, and whatever setbacks the revolution may experience, it will win in the end because it follows the law and direction of historical development.
Violent changes took place in the Soviet Union and Eastern Europe in the late 1980s and early 90s. The communist parties lost their ruling position, socialism was abandoned, and the world socialist movement suffered its greatest setback this century. Hostile forces in the West were excited and asserted categorically that Marxism and socialism were bankrupt. The future and destiny were pregnant with grim possibilities and some people became pessimistic. Confronted by local failure and temporary setbacks, Comrade Deng Xiaoping solemnly stated with the foresight of a great statesman, "Don’t panic, don’t think that Marxism has disappeared, that it’s not useful any more and that it has been defeated. Nothing of the sort!"[iv] When socialism was at a low ebb across the world it radiated vigor and dynamism in China. China’s economy has been developing rapidly and in a healthy manner, the living conditions of the people have been improving and the overall capacity of the country has been strengthened. All these indisputable achievements have been highly appreciated by all those who harbor no prejudice against China. The great cause of building socialism with Chinese characteristics under the guidance of Deng Xiaoping theory is not only a pioneering undertaking in. China but also of world significance. Deng Xiaoping pointed out that if we can achieve the strategic goal of reaching the level of moderately developed countries by the middle of the next century, "we shall not only have blazed a new path for the peoples of the Third World, who represent three quarters of world’s population, but also – and is even more important – we shall have demonstrated to mankind that socialism is the only path and that it is superior to capitalism."[v]
Complex objective and subjective reasons account for the twist and turns in the development of socialism. First, the long-term existence of class struggle both at home and abroad. "The tree desires stillness but the wind will not cease." Class struggle exists independent of man’s will. Where there is a struggle there will inevitably be fluctuations, and high and low tides, victory and defeat, and progress and setbacks are just normal phenomena and are not unexpected. Second, the socialist system is a completely new social system in the history of mankind and its development has to undergo a long historical process from inexperience to experience, from imperfect to perfect, from immature to mature. It is hard to completely avoid mistakes, twists and reverses during this process. We can try to arrive at a correct understanding by following the patter, "practice, knowledge, and then back to practice, knowledge," constantly summing up our experiences and moving step by step from the realm of necessity to the realm of freedom. Third, if the party and government leadership of a socialist country cannot earnestly correct their political errors or effectively combat corruption within their ranks, the situation will become complex and grave, and major reverses or even great historical retrogression will follow. The first two are objective in nature, while the third is subjective. If no major problems occur with regard to the leadership, the wheel of history will not be turned back even though it is impossible to avoid minor setbacks. However, from a long-term perspective, no matter what twists and turns may take place, these only constitute a link in the whole chain of historical development, they do not, and cannot, after the general trend of historical development. This is just like the, Yellow River: it has many turns and meanderings, but it nevertheless continues to flow into the eastern seas. In this regard we must pay attention to the following points: 1. Do not take the temporary setbacks as the end of point of historical development. On the contrary, we should observe things from the perspective of historical development and take the setbacks for what they reality are, a temporary phenomenon and a link in the chain in human history. We must be firm in our faith and conviction in the face of any difficulties and grasp the general trend of historical development. 2. We should earnestly summarize our experience and the lessons learned and try by every means to avoid losses that could be avoided. The pivotal point in this connection is to strengthen the building of the Party and maintain the correctness of leadership. 3. We are convinced that even in the Soviet Union and Eastern European countries in which there have been great historical reverses, the broad masses and the true communists will re-select the socialist road after conscientious reflection – this process may be and painful, but undoubtedly things will develop in this direction – this is a historical law independent of man’s will.
II. Summarizing the Historical Experience of Socialism in a Scientific Way
Engels pointed out that, "There is no better road to theoretical clearness of comprehension than to learn by one’s mistakes, durch Schaden klug werden."[vi] Deng Xiaoping said, "In building socialism we have had both positive and negative experience, and they are equally useful to us."[vii] "The experience of successes is valuable, and so is the experience of mistakes and defeats. Formulating principles and policies in this way enables us to unify the thinking of the whole Party so as to achieve a new unity: unity formed on this basis is most reliable."[viii]
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Interviewer: Liang Weiguo
Chinese Social Sciences Net (CSSN)
[Introduction to the Interviewee] March 31, 2012 – Cheng Enfu, born in Shanghai in 1950, is a professor, PhD candidate supervisor, and representative to the Eleventh National People’s Congress, as well as the director of the Marxist Academy, an affiliate of the Chinese Academy of Social Sciences (CASS).
In May 2004, Prof. Cheng gave a lecture in a study meeting of the Political Bureau of the CPC Central Committee presided by Hu Jintao, general secretary. In February 2002, he presented a report on how to reform in a theoretical symposium presided by Jiang Zemin, former general secretary. He has been seen as “one of the representatives of the fourth generation of China’s economists” and “one of the most creative economists in China” by some influential newspapers in China and Japan.
Prof.. Cheng is also a member (academician) of CASS, member of the CASS Academic Division Presidium, director of the Academic Division of Marxism Study in CASS, chairman of the World Association of Political Economy (a global academic community), chairman of the Chinese Society for Studies of Foreign Economics, president of the Institute for Studies of Regularities in China’s Economy, and an “Expert of the Marxism Discipline Appraisal Group in the Academic Degree Commission” of the State Council. He enjoys a State Council Special Allowance.
Cheng Enfu, the director of the Marxist Academy in CASS, is describing the current situation of China’s ideological field.
It is the premise of a firm political belief to keep ideologically sober. What ideological trends are there in the ideological realm in China today? What are their key ideas? How to understand and treat them? How to develop the philosophy and social sciences with Chinese characteristics and Chinese style? Liang Weiguo, CSSN reporter, had an interview with Prof. Cheng Enfu recently for the answers to the questions.
To Resist the negative effects of Neoliberalism on reform
Interviewer: It is a must to identify the true and the false through comparisons among various ideologies if we want to get clear on what are Marxism, socialism with Chinese characteristics and the socialist core value system. Director Cheng, what ideological trends are there in our society today?
Cheng Enfu: In fact, there are seven important ideological trends in the ideological realm in China today: Neoliberalism, Democratic Socialism, the New Left, Eclectic Marxism, traditional Marxism, Revivalism and Innovative Marxism. By ideological trend, I use it as a neutral concept and various studies of Marxism can also be seen as ideological trends.
In the 1870s, the UK suffered from a serious economic crisis. T.H. Green firstly created a theory which maintained the tradition of UK’s liberalism and implemented state intervention to bring the role of state into full play. After the 1890s, many radical intellectuals — who called themselves “collectivists” — within and outside the Liberal Party contended to build an equal and cooperative new society. “Neoliberalism” was the popular word which represented the theory they held. Could you please give us your understanding of “Neoliberalism”?
Neoliberalism is the ideology, economic theory and policy proposal of the monopolizing capitalist classes. Its theories and policies can be summarized as “four de- or -izations”.
Firstly, Neoliberalism stands for de-regulation of economy. It believes that planning of economy and regulation of distribution by state would ruin economic freedom and kill the enthusiasm of the “economic man”. Only by letting the market run freely can we have the best result.
Secondly, Neoliberalism stands for the privatization of economy. It contends that privatization would become the basis on which the role of market could be brought into full play, and private enterprises are the most efficient ones, and the public resources should be privatized. Neoliberalism tends to reduce public sectors, state-owned sectors and institutions to the minimum, or none.
Thirdly, Neoliberalism stands for the liberalization of economy. It claims that free choice should be the most essential principle of economic and political activities. We should have the right to possess personal property and carry out free trade, consumption and employment. But it denies the free flow of the labor force. The nature of its liberalization of economy is to protect the unfair economic globalization dominated by the US and the unjust old international economic order.
Fourthly, Neoliberalism stands for the personalization of welfare. It stands against building a welfare state and improving the welfare of the laborers. And that is a typical feature of Neoliberalism. However, it has not been clearly stated in the academic circles both in and outside China.
Zhang Weiying and Yao Yang, professors of Peking University, are leading figures of China’s Neoliberalism.
The diversification of guiding ideologies advocated by Democratic Socialism
The concept of Democratic Socialism was first put forward in the book “The Preconditions of Socialism” by Eduard Bernstein in 1899. In June 1951, the Socialist International passed the declaration “Aims and Tasks of Democratic Socialism” as its principles when it was founded. It clearly set “Democratic Socialism” as its program and standed openly against the scientific socialism of Marxism.
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Photo: Interesting lineup. Stalin dropped, Chou En-Lai and Deng added
By Li Hongfeng
Literature of Chinese Communist Party, Issue 4, 2014
Abstract: As the chief architect of China’s reform and opening up and socialist modernization drive, Deng Xiaoping created a new historical period of reform and opening up. During the historical process of advancing reform and opening up, Mr. Deng thoroughly demonstrated a strategist’s strategic thinking, judgment, design and decision. He created a new historical period, starting reaffirming and reinstating the Party’s ideological guideline of seeking truth from facts. After deeply studying the profound changes of domestic and foreign situations, Mr. Deng gave two important strategic judgments: China being and to be in the preliminary phase of socialism; and peace and development being two great issues of the contemporary world. On the basis of such two judgments, he made a series of far-reaching strategic decisions centering on his belief in socialist and communist causes. Mr. Deng suggested leadership should have principles, systematicness, foresight and creativity, which reflected Deng’s understanding of regularity in leadership and essential characteristics of his leading style.
In Deng’s life, he fell three times and rose up again. After Mr. Deng was reinstated at the third time, his career ushered in full swing and he created a new historical period of China’s reform and opening up. Looking back on the great historical process of Deng Xiaoping boosting reform and opening up and learning about his strategist’s wisdom in strategic thinking, judgment, design and decision can be beneficial to deepening reform comprehensively and carrying forward reform and opening up and socialist modernization drive.
I. Strategic starting point of defining ideological guidelines
The “cultural revolution” resulted in a ten-year-old turmoil and brought about severe calamities, incurring great costs to our Party, country and nation. The “left” wrongdoings can’t be continued and it is a must to correct those mistakes.
Deng Xiaoping undertook duties in a dangerous situation. As soon as taking office, Mr. Deng manifested a great strategist’s foresight. Facing the complex situation of many things waiting to be done, Deng Xiaoping grasped the most important link – starting from establishing the ideological guideline.
For Deng’s creation of a new historical period, it is a strategic starting point to reaffirm and reinstate the Party’s ideological guideline of seeking truth from facts.
Seeking truth from facts is our Party’s ideological guideline in both correctly understanding and changing the objective world. The China’s revolutionary process has fully proved: only on the basis of the guideline of seeking truth from facts, our Party could create the China’s revolutionary path of encircling the cities from the rural areas; our Party could find the three valuable approaches of the armed struggle, united front and party building; our Party could correctly resolve a series of basic problems on the nature, objective, driving force, goal and transformation of Chinese revolution; our Party could establish the correct political, military and organizing guidelines; our Party could build up a Marxist working-class vanguard in a semicolonial and semifeudal society with a large rural population and a small working-class population; our Party could successfully Sinicizing Marxism and create and develop Mao Zedong Though; our Party could surmount numerous hardships, overcome mistakes and frustrations in the progress, correctly sum up experience and lessons, unite all Party’s members and the whole Chinese nation and continuously accomplish new achievements. As the Party and Chinese people were armed with the ideological guideline of seeking truth from facts, the Chinese revolution embarked on the path to successes.
After become the ruling party, our Party had various mistakes and errors, especially the all-round wrongdoing of the “cultural revolution,” which was caused by various complex reasons but basically, resulted from the diversion from the ideological guideline of seeking truth from facts.
After smashing Gang of Four in 1976, the whole Party and nation were inspired. However, the wrong proposition of “two whatevers” remained restricting people’s thinking. The discussion on the criteria of truth succeeded in breaking the barriers of “two whatevers.” To support and promote the discussion on criteria of truth, Deng Xiaping made 26 remarks and speeches in less than two years in order to repeatedly expound on the essential reasons of seeking truth from facts.
Mr. Deng definitely pointed out: the “two whatevers” are wrong and don’t comply with both Marxism and Mao Zedong Thought. Marx, Engles, Lenin, Stalin or Mao Zedong proposed any “whatever.” It is not allowed to impair the whole Mao Zedong Thought with several or partial words and sentences. To follow Mao Zedong Thought shouldn’t focus on citations of Chairman Mao’s remarks but highlight the exertion of Mao’s essential thought.
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By Andrew Wedeman
The Communist Party of China has been grappling with corruption almost from its birth. Corruption was one of the major issues during the 1989 anti-government demonstrations.
The leadership, in fact, responded to public anger over corruption and what was then known as “official profiteering” by launching a major campaign, in the course of which the number of individuals charged with corruption jumped from 33,000 in 1988 to 77,000 in 1989, and 72,000 in 1990.
Since the 1989 campaign, the leadership has waged an ongoing “war” against corruption and routinely prosecutes substantial numbers of officials. Between 1997 and 2012 the Supreme People’s Procuratorate reported that it indicted 550,000 individuals on either corruption or dereliction of duty charges, including three members of the powerful Politburo (Chen Xitong in 1997, Chen Liangyu in 2006, and Bo Xilai in 2012).
These prior efforts notwithstanding, upon assuming the office of General Secretary of the party in November 2012, Xi Jinping announced yet another campaign, which was formally approved by the Third Plenum of the Eighteen Party Congress in early November 2013. At first, the campaign appeared to be a repeat of the same old song and dance. Many of the steely toned slogans about the necessity to fight a life-and-death struggle against corruption and the need to put an end to extravagant spending by officials and cadres had been raised many times before.
Announcements of new regulations mandating fewer dishes at official banquets, banning the purchase of luxury sedans and their use for unofficial business, and the construction of lavish government buildings all reiterated orders issued in past years. Eighteen months on, however, it appears that far from a smoke and mirrors attempt to create the impression of action, Xi Jinping’s anti-corruption campaign may well be the most sustained and intensive drive against corruption since the start of the reform era.
By the Numbers
Measuring the intensity of an anti-corruption campaign is, admittedly, a tricky business given that we cannot even roughly estimate the true extent of corruption. Instead, we can at best guess at the extent by asking experts for their impressions of how bad things are or tracking changes in the number of officials who suddenly stop being corrupt because they get caught. Indices such as the popular Corruption Perceptions Index (CPI) published by Transparency International would have us believe that rather than getting worse, corruption in China has actually been on the decline for at least a decade, with its score falling from 7.6 (out of a maximum of 10, where 10 is the most corrupt and 1 the least corrupt) in 1995 to 6.0 in 2013, which would put China just below the 75th percentile and hence not among the worst of the worse.1
Data on prosecutions tell a different story. The number of criminal indictments was up 9.4 percent in 2013, with the total number of corruption and dereliction cases increasing from 34,326 in 2012 to 37,551 in 2013 (see Figure 1). The number of officials holding position at the county and departmental levels who were indicted rose from 2,390 to 2,618, a 9.5 percent increase. The number of officials the prefectural and bureau levels who were indicted shot up more dramatically, from 179 in 2012 to 253 in 2013, a 41.4 percent jump. Although nine percent increases in the total number of cases and in the number of county and department officials indicted may seem modest for a highly trumpeted campaign, these increases followed a decade in which the total number of indictments had been slowly decreasing. Increases in 2013, moreover, follow more modest increases in 2012. As a result, the total number of indictments in 2013 was 16.2 percent more than in 2011, and the number of country and department officials indicted was up 12.6 percent compared to 2011. More critically, the 41 percent increase in prefectural and bureau level officials indicted is the largest such increase since 2004, and represents a 27.8 percent rise over 2011. Finally, eight officials at the provincial and ministry levels were indicted, compared to five in 2012. The party’s Discipline Inspection Commission (DIC) also reported a 13.3 percent increase in the number of party members who faced disciplinary action.
Sources: Zhongguo Jiancha Nianjian [Procuratorial Yearbook of China], (Beijing: Zhongguo Jiancha Chubanshi, various years) and Zuigao Renmin Jiancha Yuan Gongzuo Baogao [Work report of the Supreme People’s Procuratorate], 3/18/2014, available at http://www.spp.gov.cn/tt/201403/t20140318_69216.shtml, accessed 6/12/2014.
Note: To provide a long-term perspective, I have transformed the raw data on cases filed into an index anchored on the years 1997-8. I do this because the 1997 revision of the criminal code decriminalized a large number of low-level offenses. The dramatic drop in cases filed thus creates the misleading impression that either corruption fell dramatically, which it did not, or that enforcement suddenly slacked off, which it did not either.
It is also possible to look at the type of corruption a campaign is targeting and who is getting caught to get a more nuanced sense of whether Xi’s roar is that of a paper or a real tiger.