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Tuesday, December 19, 2006

Chinese Calculus and Chinese Capitalism

Is China Communist? No.

Mao_1by Andrew Bast

Pop Quiz! One question, and it seems simple. Q) Is China Communist? A) Yes, there are more than a billion commies living the Marxist utopian ideal in the East. B) No, they’re unforgiving, shrewd, money-hungry capitalists like the rest of us.

Correct answer: B.

China’s no more red than Michael Moore telling his accountant to buy low and sell high.

“China is only communist in the most limited sense,” Suzanne Ogden, a China scholar and professor at Northeastern University told The Inquirer. “There is a one-party system of rule. Apart from that, there’s no pursuit of communist ideology or serious pursuit of Marxism. There are a lot of wealthy people in China.”

CommiespullToday, China’s no different than France, Germany, or Great Britain when they controlled major industries like telecommunications, Ogden explained. As it stands, some Chinese industry is still socialized, but especially in the last ten years, the party has relinquished even more of that dominance.

No commies in China? You’ve got to be kidding. Actually, wealthy Chinese are no joke. As the unleashed Chinese economy surges, an affluent class has emerged—much like a hillbilly who’s won an all-expenses paid life in the social circles of the Upper East Side.

While China, the world’s most populous nation with 1.3 billion people, still enforces a one-child policy, families raking in dough are spending accordingly. That one kid (imagine a country full of only children!) could be enrolled in an after-school junior M.B.A. program by the age of five. Horse-riding lessons, dancing classes and high tea. The Hamptons in Beijing.

There is a seedy underbelly to the capitalist enterprise. Swaths of the population lose social services in exchange for those horse-riding lessons. Mao’s Cultural Revolution in 1960s and 70s produced a 90% literate populace, and no worker went without healthcare. This is history.

To put it simply, the western half of the country has caught the short end of the stick. Work centers, now privatized, have gone bankrupt and are without medical services. Farmers can’t pay school fees for their children. Ogden says it's going “very poorly.” The government is working on the problem—eradicating school fees, for instance—but the communal ideal is undoubtedly a vanquished reality.

Since Deng Xiaoping commenced economic reforms in 1978, the Chinese economy has grown at a staggering 9% annually. China entered the World Trade Organization in 2001, decidedly signaling the former communist state’s transformation into a capitalist superpower.

Perhaps Deng addressed the coming transformation decades ago when he said, “Doesn’t matter if the cat is white or black, as long as it catches the mouse.”

(Originally published 10/10/06. Illustration by Dustin Glick.)

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Comments

A.N.P.

Be careful. Even though China has (at least on the surface) liberalized their economy for the purpose of attracting foreign investment (for further infrastructure-building,) their government is still firmly under the control of the Chinese Communist Party whose goals are unquestionably Marxist (just visit their website).

Also, General Secretary Hu Jintao has made public statements suggesting that he is more ideological than his forebears (e.g. his labelling of Gorbachev as a "betrayer of socialism") He has vociferously criticized the widening income gap among the Chinese population and, in response, has launched a campaign to build a "harmonious society". Furthermore, he has unceremoniously cracked down on corruption within the party (in other words, he's liquidated the "capitalist roaders") and will undoubtedly replace them with like-minded cadres more loyal to the cause of building socialism.

Finally, we know from history that communists in general are conniving and surreptitious. Regardless of what the Chinese government says "officially" in the press, we can never be fully certain of their true intentions. Of course, this applies to every government so I will concede that this is not my strongest argument.

Contrary to popular thinking, communism is not a monolithic philosophy; it is highly flexible and can be applied in numerous ways in light of different historical circumstances, provided that the overall strategy - attaining communism - is never compromised. With regard to the Chinese, even though their tactics have changed, their strategy is still very much the same.

Manfred

In response to A.N.P.'s comment:

It is true that Hu Jintao has worked to soften some of the disparities produced by China's market economy by, for example, cutting taxes on farmers (hardly what you would expect of a "conniving" communist) and, yes, speaking at length on a "harmonious society."

And, as A.N.P. says, communism is not a monolithic philosophy. Mao Zedong, for example, redefined communism dramatically, annoying the Soviets in the process.

But gutting social services, giving workers the boot and allowing businesspeople into the Party is so far from central communist tenents that it begs the question: if China is experiencing, as its leaders say, "socialism with Chinese characteristics" and those "characteristics" are undistinguishable from those of capitalism, isn't China either capitalist or we Americans communist?

There have been plenty of Leninist, one-party states that have been capitalist. Chiang Kaishek's government in Taiwan was one.

The People's Republic of China is another.

kint

There is very little that is ideologically Communist about China. China can be described now is an authoritarian government with a semi-command economy, along the lines of the Pinochet-led government of Chile (even though he was vehemently anti-Communist), where the military junta would be the Communist party in China..

Peter Eichenberger

Honestly, what does it matter. You gonna stand around and discuss what breed of dog is about to rip you to pieces? US money has armed and built up everyone who had ended up causing the US security problems, Japan, Germany, the USSR, blah blah blah. China? Same thing, only there are more of them. Whooo hooo! It's the American way! Now go and enjoy those low WalMart (or whomever) prices.

Steve

In terms of economic system, China is already a market-driven capitalized system. It is even more open than many Western countries. That's for sure. In terms of political system, it is still socialism even though the ideological control is much looser than before. Socialism and capitalism are fighting each other. It is difficult to know at this stage who will win at the end.

Peter Eichenberger

The United State's Treasury, particularly John D. Rockeller, funded the Trotskyites and the flegling USSR, just as they are China, via consumers. No news here. Money is winning, always does. Your Christmas is paying for one titanic future war.

http://www.indyweek.com/gyrobase/Content?oid=oid%3A36309

Katrina

Who is this peter eichenburger? some jewish banker who bought the rights to put every single one of his thoughts on the web? What does he know about global warming??

Peter Eichenberger

Katrina, It is a bit early in the day to be drunk. Maybe you're just illiterate, as I suspect. I've never said anything about global warming. As far as this "Jewish Banker" business, trafficking in that weary old slur? I though we whupped you Nazis in '45. As far as paying for internet usage, Hell, they put your ignorant racist mouth on. Let's hear it for the First Amendment.

Katrina

Why do you think I am a Nazi? Are you a global warming racist?

Peter Eichenberger

I don't know if you are a card carrying member of the Nazi party, but you sure are one anti-semitic piece of doo doo. You are the one who started it with the "jewish banker" schtick. Again, where is this "global warming" bit coming from? Keep it up sweetie. Ignoramuses like you are fun.

 sexybabii x

China ROCKS ! =] x

ByTheWay

China will squash the jews I bet ...

pg

Just read Eichenberger's article
and i think that in china business comes before patriotism too.It can be called our 'tradition' (i hate it)

dagffa

China is a reverse capitalistic country which offers near slave labor to be exploited by foreign capital. The driving engine of capitalism is self improvement. We are adopting the Chinese system. There is nothing capitalistic about China. If you work there for any time, you see one side they show business people. If you bother to look, Mao is very proud. People no longer require brainwashing in this country. Quick rinse will do. Read Hamilton for American Capitalism. I don't believe how many people are hoodwinked.

ClubPenguin

That's for sure. In terms of political system, it is still socialism even though the ideological control is much looser than before.

JED

Forget Marx! China is still a Maoist communistic socialism, the same government which murdered over a million of its citizens for either going against the government or being suspect of such. Maoist principles dictate that all citizens are obligated to put their noses in neighbor's business and report it. Though there are 3 branches of government, the communist Party rules and has final say. People can vote for representation, making the government a "republic" but they can vote only for communists in the communist Party of the republic! It is a mock attempt to show the world they are liberating their people to gain access to trade and industrialization. China knows that the USA won WWII only because of its massive industrial capabilities. The USA made inferior war machines but lots and lots of them, fast. Now we are moving our industry to China and they love it. It weakens us militarily and will make them the number one military and industrial power in the world, within 50 years! Enjoy your freedom while it lasts. Historically it does not! Learn the Cantonese Language, they may respect you more than a dog. ... and they eat dogs in China!

Michael

"Mao’s Cultural Revolution in 1960s and 70s produced a 90% literate populace, and no worker went without healthcare. This is history."

I honestly can't believe you would use Mao as a way to argue China's evolution. Yes, there is no denying Mao's influence and the fact that some of what he did helped form China today. But to use that statement and not also remark that he was responsible for one of the worst Genocides between 1900 - 2000 is irresponsible of you. I am sorry, but I am sure those who lost their lives or family members would have preferred being alive than comprehensive Health Coverage.

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