How does a communist government negotiate its way within global capitalism? It feels each stone on the bed of the stream with its feet before proceeding. Let me give a few examples, drawn from Adrian Chan’s Chinese Marxism. Each of them provides a partial answer as to why China did not suffer any great pain with the Asian Economic Crisis of the late 1990s and now the Atlantic Economic Crisis that began in 2008. (Another part of the answer is, of course, the massive integration of the economy and the government in what some may call a planned economy, but what is perhaps better called a ‘focus-field’ system.)

An indication may be found already back in the early 90s. In 1993, inflation was running at 25%; by 1997 it was 2%. At the same time the economy ‘grew’ by that steady average of 8-9%. How was this managed? Instead of ‘opening’ the economy up to international speculation and competition, China retained control of its currency and the exchange rate, thereby protecting itself from the ravages of the international money market. Even now, the government refuses to make the currency fully convertible – much to the fury of regimes such as the USA. The result is that the state retains fiscal control and yet encourages enterprises, both local and international, to prosper and survive and thereby reduce inflationary pressure.

A similar level of control over the currency took place during the Asian Economic Crisis of the late 1990s. Despite the fact that most of the other currencies in South-East Asia did plummet, and despite the threat of Moody’s to downgrade the credit ratings of China and Hong Kong, the government refused to devalue. Why? One reason put forward was that China was thereby helping the struggling Asian economies to get back on their feet, since their exports were now considerable cheaper. Another reason is that the government was keen to block currency traders and manipulators from attacking its own banks.

Here the successful defence of Hong Kong and China shows how such a policy works. Many Asian countries were attacked by manipulators, forcing the central banks to use their reserves, usually in US dollars, and when they were depleted, to devalue and then be forced to follow the infamous harsh measures of the World Bank and IMF. In August 1997, Hong Kong itself was attacked. China immediately pledged its then considerable reserves of $140 billion (now much higher) to resist. Hong Kong threw in its own $98 billion. The result: after six weeks the attack was called off. The Monetary Authority of Hong Kong, in coalition with the Chinese central bank, had used about $30 billion to defend the Hong Kong dollar. Since that dollar had risen by $0.02, the gain was about $600 million.

Chan concludes: ‘This ability of China’s new socialists to take advantage of the contradictions of the capitalists would probably have been cheered on by Mao’ (p. 200).

I have come across a magnificent piece by Domenico Losurdo, called ‘Lenin and Herrenvolk Democracy’. Here Losurdo deploys Lenin’s critique of colonialism and Western’ democracy’ to devastating effect. Let me pick out some of the more salient points.

To begin with, in John Stuart Mill’s On Liberty, we find that ‘despotism is a legitimate mode of dealing with barbarians’, for liberty is only for ‘those in the maturity of their faculties’. As for the rest, they are little superior to the animals. (This is precisely the sentiment of Aristotle in relation to ethics and democracy.) In other words, liberal ‘freedom’ and ‘democracy’ are inseparable from oppression and dispossession; one relies on the other to function.

Losurdo moves on to consider a paradox in the heart of today’s beacon of ‘democracy’ and ‘liberty’: liberal democracy developed in the white community in direct relation to the enslaving of blacks and deportation of indigenous peoples. ‘For thirty-two of the first thirty-six years of the United States’ life, slave-owners held the presidency, and they were the ones who wrote the Declaration of Independence and the Constitution’. Indeed, one cannot understand ‘American liberty’ without slavery and dispossession, for they grew together, one sustaining the other. As a further example, during the so-called ‘Progressive Age’, in the late 19th and early 20th centuries, numerous ‘democratic’ reforms took place: direct election to the Senate, secret vote, primaries, referenda etc. They all took place during a rise in ferocity of the Ku Klux Klan terrorist squads and a push to deprive indigenous people of their residual lands and assimilate them. So also with the treatment of ‘rogues’ or ‘pariahs’ outside the USA (‘rogue’ was originally a term used for slaves, and when one had white semi-slaves, they were branded with an ‘R’ to signify their status): once declared a ‘rogue’ or ‘pariah’ state, the ‘world’s oldest democracy’ (Clinton) and ‘model for the world’ (Bush) can crush these ‘barbarians’ (Mill) in order to bolster ‘freedom and democracy’.

One might also compare Israel, suggests Losurdo, supposedly the only ‘true democracy’ in the Middle East, where ‘freedom of expression and association’ exist. But that can be maintained only by ignoring a macroscopic detail: ‘government by law and democratic guarantees are valid only for the master race, while Palestinians can have their lands expropriated, be arrested and imprisoned without process, tortured, killed, and, in any case under a regime of military occupation, have their human dignity downtrodden and humiliated daily’.

And then in a new twist, when fading colonial powers are losing their grip, they suddenly happen upon self-determination for valuable sections of the former colony (which have themselves been ethnically, culturally and religiously engineered). Thus, when England finally had to give Hong Kong back to China, the last governer, Chris Patten, ‘had a species of illumination and improvised conversion: he appealed to the inhabitants of Hong Kong to claim their right to “self-determination” against the motherland, thereby remaining within the orbit of the British Empire’. One might say the same about claims for Tibet’s independence.

Finally, to what do the oft-repeated and much-vaunted claims for ‘human rights’, ‘liberty’ and ‘freedom’ amount? Losurdo deploys Cecil Rhodes’s formula for the British Empire, which is still perfectly valid today: ‘philanthropy + 5 per cent’, where ‘philanthropy’ is synomous with ‘human rights’ and 5 per cent the profits to be made by waving the flag of ‘human rights’.

Many of these details are reasonably well-known, but the argument is usually one of hypocrisy: they don’t live up to their ideals. But Losurdo, developing Lenin, has a much sharper point. The very possibility of bourgeois ‘democracy’ and ‘freedom’ is directly dependent upon, and thereby unthinkable and unworkable without, systemic dispossession of the majority – and vice versa.

On my last day in China – Hong Kong SAR to be precise – the extraordinary Philip Chia attempted and achieved the well-nigh impossible: to get me in a death-defying cable car along with Mark Brett, with whom relations have been, ah, a little frosty of late. Since the former scared me far more than the latter …

… I took a small valium tablet to smooth the ride.

Our destination was the gift from the Chinese government to Hong Kong when the wayward city returned to the warm embrace of the motherland: the Tian Tan Buddha of recent provenance:

But then a most extraordinary thing happened: I found enlightenment and made up with Mark:

Even the kid vomiting brown liquid (too much chocolate ice cream) on the way back down while he continued to play his video game didn’t phase me.