China 2017: Socialist or Imperialist?

Is China an Imperialist Country? considerations and evidence
by N.B. Turner, et al.
Kersplebedeb, 2015

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This article began as a book review of Is China an Imperialist Country?. However, I was spurred to complete this review after witnessing a surge in pro-China posts and sentiment on the /r/communism subreddit, an online forum that MIM(Prisons) participates in. It is strange to us that this question is gaining traction in a communist forum. How could anyone be confused between such opposite economic systems? Yet, this is not the first time that this question has been asked about a capitalist country; the Soviet Union being the first.

Mao Zedong warned that China would likely become a social fascist state if the revisionists seized power in their country as they had in the Soviet Union after Stalin’s death. While the question of whether the revisionists have seized power in China was settled for Maoists decades ago, other self-proclaimed “communists” still refer to China as socialist, or a “deformed workers’ state,” even as the imperialists have largely recognized that China has taken up capitalism.

In this book, N.B. Turner does address the revisionists who believe China is still a socialist country in a footnote.(1) Ey notes that most of them base their position on the strength of State-Owned Enterprises (SOEs) in China. This is a common argument we’ve seen as well. And the obvious refutation is: socialism is not defined as a state-run economy, at least not by Marxists. SOEs in China operate based on a profit motive. China now boasts 319 billionaires, second only to the United $tates, while beggars walk the streets clinging to passerbys. How could it be that a country that had kicked the imperialists out, removed the capitalists and landlords from power, and enacted full employment came to this? And how could these conditions still be on the socialist road to communism?

Recent conditions did not come out of nowhere. By the 1980s, Beijing Review was boasting about the existence of millionaires in China, promoting the concept of wage differentials.(2) There are two bourgeois rights that allow for exploitation: the right to private property and the right to pay according to work. While the defenders of Deng Xiaoping argue that private property does not exist in China today, thus “proving” its socialist nature, they give a nod to Deng’s policies on wage differentials; something struggled against strongly during the Mao era.

Turner quotes Lenin from Imperialism: The Highest Stage of Capitalism: “If it were necessary to give the briefest possible definition of imperialism we should have to say that imperialism is the monopoly stage of capitalism.”(3) And what are most SOEs but monopolies?

Is China a Socialist Country?

The question of Chinese socialism is a question our movement came to terms with in its very beginning. MIM took up the anti-revisionist line, as stated in the first cardinal principal:

“MIM holds that after the proletariat seizes power in socialist revolution, the potential exists for capitalist restoration under the leadership of a new bourgeoisie within the communist party itself. In the case of the USSR, the bourgeoisie seized power after the death of Stalin in 1953; in China, it was after Mao’s death and the overthrow of the ‘Gang of Four’ in 1976.”

We’ll get more into why we believe this below. For now we must stress that this is the point where we split from those claiming to be communists who say China is a socialist country. It is also a point where we have great unity with Turner’s book.

Who Thinks China is Socialist?

Those who believe China is socialist allude to a conspiracy to paint China as a capitalist country by the Western media and by white people. This is an odd claim, as we have spent most of our time struggling over Chinese history explaining that China is no longer communist, and that what happened during the socialist period of 1949 - 1976 is what we uphold. We see some racist undertones in the condemnations of what happened in that period in China. It seems those holding the above position are taking a valid critique for one period in China and just mechanically applying it to Western commentators who point out the obvious. We think it is instructive that “by 1978, when Deng Xiaoping changed course, the whole Western establishment lined up in support. The experts quickly concluded, over Chinese protests, that the new course represented reform ‘capitalist style.’”(4) The imperialists do not support socialism and pretend that it is capitalism, rather they saw Deng’s “reforms” for what they were.

TeleSur is one party that takes a position today upholding China as an ally of the oppressed nations. TeleSur is a TV station based in Venezuela, and funded by Venezuela, Bolivia, Ecuador, Cuba, Uruguay and Nicaragua. Venezuela is another state capitalist country that presents itself as “socialist”, so it has a self-interest in stroking China’s image in this regard. One recent opinion piece described China as “committed to socialism and Marxism.” It acknowledges problems of inequality in Chinese society are a product of the “economic reforms.” Yet the author relies on citations on economic success and profitability as indications that China is still on the socialist road.(5)

As students of the Great Proletarian Cultural Revolution, we recognize that socialism is defined by class struggle. In fairness, the TeleSur opinion piece acknowledges this and claims that class struggle continues in China today. But the reality that the state sometimes imprisons its billionaires does not change the fact that this once socialist society, which guaranteed basic needs to all, now has billionaires. Billionaires can only exist by exploiting people; a lot! Fifty years ago China had eliminated the influence of open capitalists on the economy, while allowing those who allied with the national interest to continue to earn income from their investments. In other words they were being phased out. Some major changes had to take place to get to where China is today with 319 billionaires.

Fidel Castro is cited as upholding today’s President of China, Xi Jinping, as one of the “most capable revolutionary leaders.” Castro also alluded to China as a counterbalance to U.$. imperialism for the Third World. China being a counter-balance to the United $tates does not make it socialist or even non-imperialist. China has been upholding its non-interventionist line for decades to gain the trust of the world. But it is outgrowing its ability to do that, as it admits in its own military white papers described by Turner.(6) This is one indication that it is in fact an imperialist country, with a need to export finance capital and dump overproduced commodities in foreign markets.

“The Myth of Chinese Capitalism”

Another oft-cited article by proponents of a socialist China in 2017 is “The Myth of Chinese Capitalism” by Jeff Brown.(7) Curiously, Brown volunteers the information that China’s Gini coefficient, a measure of a country’s internal inequality between rich and poor, went from 0.16 in 1978 to 0.37 in 2015 (similar to the United $tates’ 0.41). Brown offers no explanation as to how this stark increase in inequality could occur in what ey calls a socialist country. In fact, Brown offers little analysis of the political economy of China, preferring to quote Deng Xiaoping and the Chinese Constitution as proof of China’s socialist character, followed by stats on the success of Chinese corporations in making profits in the capitalist economic system.

Brown claims that Deng’s policies were just re-branded policies of the Mao era. A mere months after the counter-revolutionary coup in China in 1976, the China Study Group wrote,

“The line put forward by the Chinese Communist Party and the Peking Review before the purge and that put forward by the CCP and the Peking Review after the purge are completely different and opposite lines. Superficially they may appear similar because the new leaders use many of the same words and slogans that were used before in order to facilitate the changeover. But they have torn the heart out of the slogans, made them into hollow words and are exposing more clearly with every new issue the true nature of their line.”(8)

Yet, 40 years later, fans of China would have us believe that empty rhetoric about “Marxism applied to Chinese conditions” are a reason to take interest in the economic policies of Xi Jinping.

Brown seems to think the debate is whether China is economically successful or not according to bourgeois standards. As such ey offers the following tidbits:

“A number of [SOEs] are selling a portion of their ownership to the public, by listing shares on Chinese stock markets, keeping the vast majority of ownership in government hands, usually up to a 70% government-30% stock split. This sort of shareholder accountability has improved the performance of China’s SOEs, which is Baba Beijing’s goal.”

“[O]ther SOEs are being consolidated to become planet conquering giants”

“How profitable are China’s government owned corporations? Last year, China’s 12 biggest SOEs on the Global 500 list made a combined total profit of US$201 billion.”

So selling stocks, massive profits and giant corporations conquering the world are the “socialist” principles being celebrated by Brown, and those who cite em.

The Coup of 1976

What all these apologists for Chinese capitalism ignore is the fact that there was a coup in China in 1976 that involved a seizure of state apparati, a seizure of the media (as alluded to above) and the imprisonment of high officials in the Maoist camp (the so-called “Gang of Four”).(9) People in the resistance were executed for organizing and distributing literature.(10) There were arrests and executions across the country, in seemingly large numbers. Throughout 1977 a mass purge of the party may have removed as many as a third of its members.(11) The armed struggle and repression in 1976 seems to have involved more violence than the Cultural Revolution, but this is swept under the rug by pro-capitalists. In addition, the violence in both cases was largely committed by the capitalist-roaders. While a violent counterrevolution was not necessary to restore capitalism in the Soviet Union, it did occur in China following Mao Zedong’s death.

At the time of Mao’s death, Deng was the primary target of criticism for not recognizing the bourgeoisie in the Party. Hua Guofeng, who jailed the Gang of Four and seized chairmanship after Mao’s death, continued this criticism of Deng at first, only to restore all his powers less than sixteen months after they were removed by the Maoist government.(12)

The Western media regularly demonizes China for its records on humyn rights and free speech. Yet, this is not without reason. By the 1978 Constitution, the so-called CCP had removed the four measures of democracy guaranteed to the people in the 1975 Constitution: “Speaking out freely, airing views fully, holding great debates and writing big character posters are new forms of carrying on socialist revolution created by the masses of the people. The state shall ensure to the masses the right to use these forms.”(13)

This anti-democratic trend has continued over the last forty years, from jail sentences for big character posters in the 1980s and the Tianamen Square massacre in 1989 to the imprisonment of bloggers in the 2010s. While supporters of Xi Jinping have celebrated his recent call for more Marxism in schools, The Wall Street Journal reports that this is not in the spirit of Mao:

“Students at Sun Yat-sen University in southern China arrived this year to find new instructions affixed to classroom walls telling them not to criticize party leadership; their professors were advised to do the same… An associate professor at an elite Beijing university said he was told he was rejected for promotion because of social-media posts that were critical of China’s political system. ‘Now I don’t speak much online,’ he said.”(14)

Scramble for Africa

What about abroad? Is China a friend of the oppressed? Turner points out that China’s Foreign Direct Investment (FDI) in Africa is significant, though a tiny piece of China’s overall FDI. First we must ask, why is China engaged in FDI in the first place? Lenin’s third of five points defining imperialism is, “The export of capital, which has become extremely important, as distinguished from the export of commodities.”(15) A couple chapters before talking about Africa, Turner shows that China has the fastest growing FDI of any imperialist or “sub-imperialist” country starting around 2005.(16) Even the SOEs are involved in this investment, accounting for 87% of China’s FDI in Latin America.(17) This drive to export capital, which repatriates profits to China, is a key characteristic of an imperialist country.

In 2010, China invited South Africa to join the BRICS group (Brazil, Russia, India, China, and now South Africa) of imperialist/aspiring imperialist countries. This was a strategic decision by China, as South Africa was chosen over many larger economies. “In 2007… the Industrial and Commercial Bank of China (now the world’s largest company) bought a multi-billion-dollar stake in the South African Standard Bank, which has an extensive branch network across the continent.” Shoprite is another South African corporation that spans the continent, which China has invested in. In Zambia, almost all the products in Shoprite are Chinese or South African.(18)

The other side of this equation indicating the role of China in Africa is the resistance. “Chinese nationals have become the number one kidnapping target for terrorist and rebel groups in Africa, and Chinese facilities are valuable targets of sabotage.” China is also working with the likes of Amerikan mercenary Erik Prince to avoid direct military intervention abroad. “In 2006, a Zambian minister wept when she saw the environment in which workers toiled at the Chinese-owned Collum Coal Mine. Four years later, eleven employees were shot at the site while protesting working conditions.”(19) While China’s influence is seen as positive by a majority of people in many African countries,(20) this is largely due to historical support given to African nations struggling for self-determination. The examples above demonstrate the irreconcilable contradiction developing within Chinese imperialism with its client nations.

“Market Socialism”

Chinese President Xi Jinping talks often of the importance of “Marxism” to China, of “socialism with Chinese characteristics” and of “market socialism.” Xi’s defenders in communist subreddits cite Lenin and the New Economic Policy (NEP) of the Soviet Union to peg our position as anti-Lenin. There’s a reason we call ourselves Maoists, and not Leninists. The battle against the theory of the productive forces, and the form it took in the mass mobilization of the Great Proletarian Cultural Revolution is core to how we define Maoism as a higher stage of revolutionary science than Leninism. The Bolsheviks tended toward upholding the theory of the productive forces, though you can find plenty in Lenin’s to oppose it as well. Regardless, Lenin believed in learning from history. We’d say Maoists are the real Leninists.

Lenin’s NEP came in the post-war years, a few years after the proletariat seized power in Russia. The argument was that capitalist markets and investment were needed to get the economic ball rolling again. But China in 1978 was in no such situation. It was rising on a quarter century of economic growth and radical reorganization of the economy that unleashed productive forces that were the envy of the rest of the underdeveloped nations. Imposing capitalist market economics on China’s socialist economy in 1978 was moving backwards. And while economic growth continued and arguably increased, social indicators like unemployment, the condition of wimmin, mental health and crime all worsened significantly.

The line of the theory of the productive forces is openly embraced by some Dengists defending “market socialism.” One of the most in-depth defenses of China as communist appearing on /r/communism reads:

“Deng Xiaoping and his faction had to address the deeper Marxist problem: that the transition from a rural/peasant political economy to modern industrial socialism was difficult, if not impossible, without the intervening stage of industrial capitalism… First, Chinese market socialism is a method of resolving the primary contradiction facing socialist construction in China: backwards productive forces.”(21)

So, our self-described communist detractors openly embrace the lines of Deng Xiaoping and Liu Shaoqi, thereby rejecting the Maoist line and the Cultural Revolution.

Resilience to Crisis

During the revolution, China was no stranger to economic crisis. From the time the war against Japan began in 1937 to victory in 1949, goods that cost 1 yuan had risen to the price of 8,500,000,000,000 yuan!(22) Controlling inflation was an immediate task of the Chinese Communist Party after seizing state power. “On June 10, 1949 the Stock Exchange – that centre of crime located in downtown Shanghai – was ordered to close down and 238 leading speculators were arrested and indicted.”(23) Shanghai Stock Exchange was re-established again in 1990. It is currently the 5th largest exchange, but was 2nd for a brief frenzy prior to the 2008 global crash.(24)

The eclectic U.$.-based Troskyite organization Workers World Party (WW) used the 2008 crisis to argue that China was more socialist than capitalist.(25) The export-dependent economy of China took a strong blow in 2008. WW points to the subsequent investment in construction as being a major offset to unemployment. They conclude that, “The socialist component of the economic foundation is dominant at the present.” Yet they see the leadership of Xi Jinping as further opening up China to imperialist manipulation, unlike other groups discussed above.

Marx explained why crisis was inevitable under capitalism, and why it would only get worse with time as accumulation grew, distribution became more uneven, and overproduction occurred more quickly. Socialism eliminates these contradictions, with time. It does so by eliminating the anarchy of production as well as speculation. After closing the Stock Exchange the communists eliminated all other currencies, replacing them with one state-controlled currency, the Renminbi, or the people’s currency. Prices for goods as well as foreign currencies were set by the state. They focused on developing and regulating production to keep the balance of goods and money, rather than producing more currency, as the capitalist countries do.(26)

When the value of your stock market triples and then gets cut back to its original price in the span of a few years, you do not have a socialist-run economy.(27) To go further, when you have a stock market, you do not have a socialist economy.

Turner addresses the recent crisis and China’s resiliency, pointing out that it recently started from a point of zero debt, internally and externally, thanks to financial policy during the socialist era.(28) China paid off all external debt by 1964.(29) This has allowed China to expand its credit/debt load in recent decades to degrees that the other imperialist countries no longer have the capacity to do. This includes investing in building whole cities that sit empty.(30)

What is Socialism?

So, if socialism isn’t increasing profits and growing GDP with state-owned enterprises, what the heck is it? The Great Proletarian Cultural Revolution (GPCR) was the pinnacle of socialist achievement; that is another one of MIM’s three main points. No one has argued that the Cultural Revolution has continued or was revived post-1976. In fact, the Dengists consistently deny that there are any capitalists in the party to criticize, as they claim “market socialism” denies the capitalists any power over the economy. This is the exact line that got Deng kicked out of the CCP before Mao died. Without class struggle, we do not have socialism, until all classes have been abolished in humyn society. Class struggle is about the transformation of society into new forms of organization that can someday lead us to a communist future.

“A fundamental axiom of Maoist thought is that public ownership is only a technical condition for solving the problems of Chinese society. In a deeper sense, the goal of Chinese socialism involves vast changes in human nature, in the way people relate to each other, to their work, and to society. The struggle to change material conditions, even in the most immediate sense, requires the struggle to change people, just as the struggle to change people depends on the ability to change the conditions under which men live and work. Mao differs from the Russians, and Liu Shao-chi’s group, in believing that these changes are simultaneous, not sequential. Concrete goals and human goals are separable only on paper – in practice they are the same. Once the basic essentials of food, clothing, and shelter for all have been achieved, it is not necessary to wait for higher productivity levels to be reached before attempting socialist ways of life.” (31)

Yet the Dengists defend the “economic reforms” (read: counter-revolution) after Mao’s death as necessary for expanding production, as a prerequisite to building socialism.

“The fact that China is a socialist society makes it necessary to isolate and discuss carefully the processes at work in the three different forms of ownership: state, communal, and cooperative.”(32)

The Dengists talk much of state ownership, but what of communes and cooperatives? Well, they were dismantled in the privatization of the 1980s. Dengists cry that there is no private land ownership in China, and that is a sign that the people own the land. It was. In the 1950s land was redistributed to peasants, which they later pooled into cooperatives, unleashing the productive forces of the peasantry. Over time this collective ownership was accepted as public ownership, and with Deng’s “reforms” each peasant got a renewable right to use small plots for a limited number of years. The commune was broken up and the immediate effects on agriculture and the environment were negative.(33)

Strategic Implications

Overall Turner does a good job upholding the line on what is socialism and what is not. This book serves as a very accessible report on why China is an imperialist country based in Leninist theory. The one place we take issue with Turner is in a discussion of some of the strategic implications of this in the introduction. Ey makes an argument against those who would support forces fighting U.$. imperialism, even when they are backed by other imperialist powers. One immediately thinks of Russia’s support for Syria, which foiled the Amerikan plans for regime change against the Assad government. Turner writes, “Lenin and the Bolshevik Party… argued for ‘revolutionary defeatism’ toward all imperialist and reactionary powers as the only stance for revolutionaries.”(34) But what is this “and reactionary powers” that Turner throws in? In the article, “The Defeat of One’s Own Government in the Imperialist War,” by “imperialist war” Lenin meant inter-imperialist war, not an imperialist invasion of a country in the periphery.

In that article Lenin praised the line that “During a reactionary war a revolutionary class cannot but desire the defeat of its government.” He writes, “that in all imperialist countries the proletariat must now desire the defeat of its own government.” While Lenin emphasizes all here, in response to Turner, we’d emphasize imperialist. Elsewhere Lenin specifies “belligerent countries” as the target of this line. So while it is clear that Lenin was not referring to Syria being invaded by the United $tates as a time that the proletariat must call for defeat of the government of their country, it seems that Turner is saying this.

We agree with other strategic conclusions of this book. China seems to be moving towards consolidating its sphere of influence, which could lead to consolidation of the world into two blocks once again. While this is a dangerous situation, with the threat of nuclear war, it is also a situation that has proven to create opportunities for the proletariat. Overall, the development and change of the current system works in the favor of the proletariat of the oppressed nations; time is on our side. As China tries to maintain its image as a “socialist” benefactor, the United $tates will feel more pressure to make concessions to the oppressed and hold back its own imperialist arrogance.

In 1986, Henry Park hoped that the CCP would repudiate Marxism soon, writing, “It is far better for the CCP to denounce Marx (and Mao) as a dead dog than for the CCP to discredit socialism with the double-talk required to defend its capitalist social revolution.”(35) Still hasn’t happened, and it’s not just the ignorant Amerikan who is fooled. Those buying into the 40-year Chinese charade contribute to the continued discrediting of socialism, especially as this “socialist” country becomes more aggressive in international affairs.

[We recommend Is China an Imperialist Country? as the best resource we know on this topic. As for the question of Chinese socialism being overthrown, please refer to the references below. We highly recommend The Chinese Road to Socialism for an explanation of what socialism looks like and why the GPCR was the furthest advancement of socialism so far.]