From Victory to Defeat: China’s Socialist Road and Capitalist Reversal
by Pao-Yu Ching
Foreign Languages Press
In a recent online debate between two random “Marxist-Leninists” and two fascists, one of the self-described “Marxist-Leninists” stated that every country in the last 100 years has been socialist. The fascists are happy to parade such meaningless dribble as “Marxism” so that they can make Marxism look bad. With Obama’s election, white nationalist fear became expressed in many deragatory words, including “communism” and “Marxism,” with no sense of irony that they were accusing the number one enemy of the world’s people of being a communist.
What is common among “Marxists” in the First World is saying every country is socialist that says it is and has some form of state intervention in the economy. This superficial analysis has also helped muddy the water of what socialism is. And it allows the fascists to say that they share many of the goals and ideals of the self-described Marxists. In particular they both look to China as a positive model of how to run a country and they both think Amerikans and various First World European nations are being victimized by the current world system. The fact that many of these fascists have chauvinist anti-Chinese views and wish war against the social-imperialist CPC is of no matter. For MIM, the question of wether today’s China is socialist or social-imperialist is a dividing line question.
To understand what socialism is, MIM has long recommended The Chinese Road to Socialism by Wheelright and MacFarlane. For the history of the coup that overthrew socialism in China MIM distributed The Capitalist Roaders Are Still on The Capitalist Road. In 1986, MIM cadre Henry Park published “Postrevolutionary China and the Soviet NEP” comparing state capitalism in the early days of the Russian revolution to state capitalism after the coup in China. In 1988, Park published “The Political Economy of Counterrevolution in China: 1976-88”, which tied all of these subjects together through a Maoist framework and analyzes the failures of state capitalism in post-Maoist China.
Pao-Yu Ching’s From Victory to Defeat serves as a more up-to-date introduction to the topic of the differences between socialism and capitalism in the last 100 years of Chinese history. It is written as a sort of FAQ and provides a broad overview, while explaining the key concepts that allow us to differentiate between the two economic systems. As such, MIM(Prisons) recommends Pao-Yu Ching’s work as a solid starting place when exploring this topic. The topic of “What is socialism?” must be fully grasped by all communists.
It seems that Pao-Yu may disagree with the Maoist class analysis. In eir introduction ey states, “Today the living conditions of the working masses in imperialist countries have grown increasingly difficult.”(p.9) Ey then alludes to rising prices, rising debt and precarious work, none of which necessarily reflect worsening objective conditions. Without a recognition that these populations are parasitic on the working classes, this line leads to the politics of the fascists and social-fascist “Marxist-Leninists” mentioned above. It is also relevant to the question of revisionism in the formerly socialist countries who looked to emulate the lifestyles of Amerikans. Since this point is not taken up in the rest of the book we will not dwell on it here, but it remains the biggest problem with this work.
What is Socialism?
Many of our readers and those who are interested in what we have to say in general are still confused as to what socialism is for the reasons mentioned above. Ultimately it is defined differently by different people, and it is used politically rather than scientifically. Pao-Yu outlines what the most advanced example of socialism looked like quite nicely in eir short book, so we will just mention some key points here to help clarify things.
Socializing industry first required that the state took control of the means of production in the form of factories, supply lines, raw materials, etc. This is where many stop with their definition of socialism. Some other key things that Pao-Yu points out is that success was no longer measured in the surplus produced but rather on improvements in the production and overall running of the enterprise.(p.20) This recognizes that some will be more profitable in a capitalist sense, but that the nation benefits more when all enterprises are improving, not just the profitable ones. Another key point is that laborers were guaranteed a job that was paid by the state and a standard rate.(p.28) This eliminated labor as a commodity that you must sell on the open market. Commodities are at the heart of capitalism. Socialism is the the transition away from commodities, starting with the most important commodity of humyn labor.
The above only applied to a minority of the country, as the vast majority of China was a peasant population. It is only in recent years that the peasantry is now less than half the population. It is in the countryside where the capitalist roaders and the Maoists disagreed the most. Pao-Yu walks us through the different phases of the transition to socialism and how the principal contradiction shifted in each phase. Ey explains the contradiction amongst the countryside, where production was not owned collectively by the whole population, and the cities where it was. The disagreement with the capitalist roaders was a disagreement over the principal contradiction at the time, which they thought was the advanced social system (of socialism) with the backward productive forces (of small scale farming by peasants). To resolve this contradiction the capitalist roaders thought they must accelerate production, industrialize agriculture, and feed the industrialized cities with the surplus of that agricultural production. This focus on production is one of the key defining lines of revisionism.
While Marx taught us that the productive forces are the economic base that define humyn history and the superstructure, he also said the contradiction with the relations of production is what leads to revolutionary transformations of society. As Pao-Yu points out, learning from Mao Zedong, during these revolutionary periods is when the relations of production become primary, in order to unleash the productive forces that have become stagnant under the previous mode of production.(p.30) In other words peasants living under semi-feudalism in China pre-liberation were not improving their conditions. They needed to revolutionize how they related to each other, how they were organized, specifically the class relations, in order to move towards a new mode of production (socialism) that could meet their needs much better. Therefore Mao focused on education, theory, class struggle, culture, the people, instead of focusing on production, profitability, surplus, and wage incentives, as the capitalist roaders did. The Maoist path took the Chinese peasants through a gradual process of increasing collectivization through communes, which was quickly dismantled after the coup in 1976.
What is Democracy?
Another question those living in bourgeois democracies often ask is how you can have democracy with only one party, where people are purged for having the wrong political line? Pao-Yu makes the point well by explaining that in established bourgeois democracies you can have many parties and many candidates, because they all represent the same class.(p.48) This is the case because these countries are stable in their mode of production (capitalism). In the transition to a new economic system the political struggle is between two classes. In the case of capitalism thransitioning to socialism, it is between the bourgeoisie and the proletariat (and their class allies on each side).
The bourgeoisie by definition is always competing amongst itself, so it cannot have one party represent all of their interests, except in extreme crises when fascism becomes viable. In the United $tates today, the left-wing of the bourgeoisie are represented by the democrats while the right-wing flock to the republicans. Even amongst these parties are different bourgeois factions fighting amongst each other. The proletariat however is united in it’s class interest, so there will be no need for multiple proletarian parties. There are many books that outline the components of socialist democracy where people select their representatives at each level of administration, where free speech and criticism are encouraged, where education is universal and free and where everyone is involved in studying theory and practice to shape the decisions that affect their day-to-day lives. It does not require having multiple political parties to choose from as bourgeois democracies do in their electoral farce.
What is China?
Pao-Yu covered China before, during, and after socialism so that the reader can better understand the differences. As such the book is a good introduction to the explanation of why China has not been on the socialist road since 1976. Ey touches on the loss of the guaranteed job, with the introduction of temporary workers, the ending of the right to strike and free expression among the workers, the ability of managers to start keeping the profits from the enterprises they oversee, the loss of universal medical care, and the focus on production for other nations, while importing the pollution of those consumer nations. Ey briefly documents the struggles of the workers to maintain control of the enterprises they once owned collectively. China is now a capitalist hell hole for the majority objectively and it does not matter wether the CPC has millions of cadre who believe the opposite subjectively.
The Global Economy
One point Pao-Yu makes that we have also stressed as being important, is the role of the proletarianization of the Chinese masses in saving global imperialism from crisis. When the imperialist economies were facing economic crisis in the 1970s, one third of the world’s population was not available to be exploited by the imperialist system. One of the laws of capitalism is its need to always expand. When China went capitalist, it opened up a vast population to exploitation and super-exploitation for the imperialists. This labor was the source of value that the imperialist system thrived off of by the mid 1980s until just recently.
Interestingly, Pao-Yu says that almost 30% of the Chinese population is petty bourgeoisie, owning (often multiple) investment properties and travelling around the world.(p.111) In a previous article we explained that we saw China as a proletarian country still despite its imperialist activities. We referred to Bromma’s research that stated China’s “middle class” was 12-15% of the population some years prior. It is interesting to hear that the Chinese petty bourgeoisie has reached the same size in absolute numbers as the Amerikan one. It would be interesting to compare the wealth of these two groups, we presume the Amerikans remain wealthier. Of course, China is still majority proletariat, while Amerika is almost completely bourgeoisified, so the class interests of these nations overall remain opposed to one another. But we will rarely hear the proletarian voices from China until a new proletarian party rises there.
The housing market is one example of how China has emulated the United $tates. Investing in properties has become an important way for the new petty bourgeoisie in China to accumulate wealth without working. Just last week, the Chinese investment firm Evergrande made headlines when it became public knowledge that they would not be able to pay the billions of dollars they owe. Evergrande has significant backing from Amerikan finance capital, as is true for the Chinese economy in general. Therefore the collapse of the Chinese housing market could have real ripple effects in the global economy.
The fact that real estate investment firms exist in China, and that they are defaulting on hundreds of billions of dollars owed, is really all you need to know to see that the economy is oriented towards profit and not people. Things like inflation and bubbles and stock markets and speculation just didn’t exist during the Maoist era. The reintroduction of these things for the last four decades destroyed the progress in class struggle in China long ago.