From Bbs.people.com.cn
May 6, 2008

Today China’ s statesmen use slogans like ‘One World, One Dream’, ‘Harmonious Society’ and ‘Scientific Development Concept.’. And yet all these terms were used in Kang Youwei’s utopian blueprint ‘Da Tongshua’. To westerners it might seem strange that the same men who in the 1920s embraced the radical ideas of Marxism, in the 1980s led China through pragmatic market reforms. And yet if one understands the mindset of their predecessor Kang Youwei, the seeming contradiction will not seem so strange. Kang laid out a vision of a world socialist republic, in which boundaries of class, race, nation, sex, family, and language were entirely abolished. A futuristic direct democracy in which virtue was the only competition. And yet the same visionary utopian, let the incredibly pragmatic 100 Days Reform. The pragmatic Mao Zedong of the 1930s, spoke of the same three staged Great Harmony, while pursuing moderate polices and alliances with the Kuomintang. If the theoretical foundations and historical experiences of Marxism-Leninism are seriously examined, it becomes clear that the market reforms of Deng Xiaoping and his successors to not represent a radical break with the vision lay out by Mao Zedong.

To observers ignorant of the basic fundamentals of Marxist-Leninist theory, Socialism with Chinese Characteristics, appears as a major break with Marxist principles, however scientific study of the historical experiences and theories of Marx, Lenin, Stalin and Mao reveal that there is in fact much continuity between Chinese Socialism and the historical legacy of Marxism. Despite antagonisms with Deng Xiaoping and Liu Shaoqi, Mao Zedong’s development of Leninist theory actually laid the groundwork for market reforms. Marx and Lenin had both seen capitalism as a necessary stage of development, and had condemned any attempt to leap from feudalism into socialism. Lenin has seized power in 1917 when Russia was still a semi-feudal nation; nonetheless he saw the role of the proletarian as one of leadership in the bourgeois democratic revolution. In the 1920s Lenin established the New Economic Policy which was very similar to the Chinese economy of the 1980s, and allowed market forces to regulate areas of the economy. Mao Zedong followed the model of the New Economic policy during the Yanan period. Having learned from the Soviet experience, Mao never launched a vigorous campaign to wipe out capitalism like Russia had during the ‘War Communism’ era. In his development of the theory of New Democracy, Mao recognized that the national bourgeoisie would have a major role to play for many years after the revolution. During the First Five Year Plan, Liu Shaoqi ensured that the state cooperated with the national capitalists. No attempt was made to wipe out private industry only to ensure that there was no exploitation. Stalin had recognized in his theory of socialist economics that the law of commodity and value still applied to socialist nations.[1] Socialist nations were not free from the objective laws of economics, instead it was their responsibility to study those laws and harness them.

Xue Muqia belonged to the generation of Chinese radicals who idealistically joined the Party in the 1920s and yet saw the need for market reform in the 1980s, while little known in the west his textbook on political economy laid the theoretical foundations for Deng Xiaoping’s epic reforms. Xue was a leader of several major workers movements in the 1920s and 1930s, and in the 1940s he governed the economic policies of large provinces. A supreme pragmatist, Xue admitted that he had not read ‘Das Kapital’ until the 1960s. Like Deng Xiaoping, Xue used his exile during the disaster of the Cultural Revolution to return to the Marxist classics, and find a way to save China from the brink of collapse. Immersing himself in the works of Marx, Engels, Lenin, Stalin and Mao, Xue saw how the feudal-fascist reign of terror by the Lin Biao-Gang of Four clique stood against Marxist ideas. With the victory of genuine Marxists over the ultra-equalitarianism, Xue proceeded to complete his masterpiece on political economy. Marx and Engels had laid out the need for a lower and higher stage of communism. Xue pointed out that during the lower stage of communism, the law of supply and demand, and commodity relations still governed.

Mao had recognized in his ‘Critique of Soviet Economics’, and ‘On The Ten Major Relationships’, that Stalinist over-centralization would be harmful to the economy. The lessons from 10 Major Relationships bear a striking resemblance to the Four Modernizations of Zhou Enlai, and the market reforms of Deng Xiaoping. Mao recognized that contradiction was the key to expanding the economy. To increase military power, it was necessary to cut back on military spending and put resources in the civil economy. To increase heavy industry it was necessary to invest in light industry and agriculture to build foundations. To expand the communes it was necessary initially to make the districts smaller. All of these brilliant insights were abandoned during the Great Leap Forward and the feudal-fascist rule of Lin Biao.[2] Marx had pointed out that just as reactionary social relations could harm production so could over-futuristic social relations. The Gang of Four had attempted to impose radical equalitarianism while China was still emerging out of feudalism. This allowed various bad elements to take advantage. In addition the productive areas were punished and the wasteful areas rewarded. No incentive existed to expand the economy, and an anti-democratic bureaucracy dictated to the economy. Xue saw that overambitious goals would be ‘punished’ by the objective laws of value.

Upon taking power Mao’s chosen successor Hua Guofeng attempted to find a balance between reform and opening up and the First Five Year Plan, while this was a progressive step it failed to create the economic dynamism needed to compete with the imperialist west and social imperialist Soviet Union. After the disasters of the Great Leap Forward and Cultural Revolution, many in the party idolized the First Five Year Plan period. However Deng recognized that a 1950s style economy could not compete in the 1980s. Deng returned to the scientific ideas laid out by Mao, and followed Mao’s command to ‘seek truth from facts’. Deng initiated radical reforms in both industry and agriculture. Just as Mao had recognized the peasants would play a decisive role in political revolution, Deng recognized their supreme role in economic revolution. Deng created a more democratic collectivist system. Because of China’s low level of development, it was not yet possible to create an ‘ownership of the whole people’. Instead collectives would be democratically owned by those who worked. [3]Collectives were separate from the state economy and were responsible for their own profits and losses. The trend towards smaller collectives had been taking place since the Great Leap Forward. Deng legalized and expanded this trend by creating the household responsibility system. [4]The system made local households responsible for their own profits, and gave them the option of farming for private surplus profit. Instead of rigid plans, Deng created more indirect planning through guidelines. Another imposition was the creation of a dual pricing system that recognized supply and demand. [5]

Marx had stated that during socialist development ‘to each according to his work’ was the principle that governed not ‘to each according to his needs’. Mao had stated that the only criterion for correct theory was practice. That was exactly what Deng Xiaoping did with the Special economic Zones. The SEZs were essentially scientific experiments that sought to test the merits of opening up and reform. The spectacular success of the early SEZs convinced even conservative party members to continue Deng’s policies.[6] The rapid growth of foreign trade and rural development helped China’s productive forces grow at an incredibly rapid rate. Despite difficulties and inequalities the Chinese Communist Party succeeded in lifting more people out of poverty than any organization or government in human history.

Hu Jintao has greatly expanded on the principles of the Three Represents, and applied it in a manner to create a more just society. The theorists of Deng Xiaoping theory recognized that reform and opening-up would necessarily create dangerous social divisions. Nevertheless they foresaw that the danger of China falling even further behind the imperialist nations, was a far greater threat. While inequality has grown at an appalling rate, the rise in productive forces has given the state the power to deal with inequality. As of 2008 only 60% of China’s population remains rural and state-owned industries account for less than 40% of the economy.[7] Jiang Zemin’s Three Represents did not mean abandoning the plight of the peasants and workers. Jiang simply recognized that in line with Deng Xiaoping Theory, the best way to help the poor was to increase productivity. Hu Jintao’s concept of a Harmonious Society called for a more even development of China’s produce. Hu Jintao has also devised plans to revive China’s fledging state owned industries. By introducing more democratic management structure, and modernizing to compete in the market, state owned companies may suceed in securing their permanent role in China’s ecnonmy.

The achievement of the Chinese Communist Party is of epic proportions. If the CPC succeeds industrializing and modernizing a nation of 1.4 billion people, it will be a feat without parallel in history. Despite constant demonization from the imperialist west, China has become a model to many developing nations. The last task remaining for the CPC is the creation of democracy. The CPC has already granted the left-Kuomintang 30% of the seats in the People’s Congress, and allowed rival parties to hold high government office. [8]As social productive forces increase China will strive towards democracy. However China cannot and does not seek to build an inequitable bourgeoisie democracy, instead China seeks to construct a shining Socialist Democracy in which the voices of all people are expressed, and which at last allows the Chinese people to reach their full human potential. The achievement of a Harmonious Society will be the realization of Kang Youwei’s dream of the Great Harmony. The construction of Socialist Democracy will prove to be an even great challenge, and even greater source of inspiration than that of the socialist economy.

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[1] Xue 16

[2] Xue 87

[3] Wei 49

[4] Lippit 24

[5] Ibid 68

[6] Riskin 135

[7] McNally 12

[8] McNally 45 “