The Silk Road is active again: Thousands of trains now run the route

Many centuries ago, the routes of the ‘Silk Road’ used camels and whatnot for covering the thousands of kilometres between east and west on the Eurasian landmass. In more recent times, when Chinese planners were thinking about the reincarnation of the Silk Road – what is now known as the Belt and Road Initiative (BRI) – they took into consideration a number of factors: trains, even slower ones, are faster than ships; the US navy likes to bully others on the high seas; Central Asia, Russia and Europe will become more and more keen on Chinese products as the latter move to high quality production. One of the key solutions was actually a relatively old one: trains.

I am a great lover of trains, taking them whenever possible. And China is now the world leader in train innovation, technology and implementation. But the development of long distance cargo trains on the Eurasian landmass has largely gone under the radar. From a modest beginning back in 2011, when the first cargo train left Chongqing in China for Duisburg in Germany, it was the beginning of a monumental shift. Back then, there were perhaps a couple of routes trains could follow. Now there are many indeed and they keep increasing exponentially.

Every few days in the Chinese newspapers (for example, here and here), I read of yet another service that has opened, so much so that now there are now 65 routes between 48 cities in China and 40 in Europe. For example, in 2108 alone, 6300 trains with cargo made the journey to Europe, an incease of 70 percent from the previous year.

More detail in this recent article from Xinhua News, the largest and most reliable news service in the world:

URUMQI, April 9 (Xinhua) — The freight train service linking Chinese cities with Europe are breathing new life into the ancient Silk Road with its rapidly expanding network.

In May 2011, a rail route was opened between Chongqing and Duisburg in Germany, marking the start of the China-Europe cargo train service.

Boosted by the Belt and Road construction, the international train service has been expanding fast over the past eight years.

A total of 48 Chinese cities have launched 65 freight train routes, reaching 14 countries and more than 40 cities in Europe in 2018. Over 13,000 trips have been conducted by the China-Europe trains as of March.

Nan Jun, deputy general manager of the Xinjiang Xintie International Logistics Company, operator of Urumqi China-Europe train logistics center, has been a witness to the development of the train service, as 70 percent of the China-Europe trains exit or enter China through Xinjiang.

According to Nan, when the logistics center was opened in May 2016, only four international lines were available, with trains operating once per week. Now there are 21 international lines, with at least three trains operating daily.

International trains starting from Urumqi can reach destinations in Kazakstan in 48 hours, Uzbekistan and Tajikistan in 72 hours, Russia in eight days, the Netherlands in 16 days and Italy in 19 days.

Cargoes traveling on the China-Europe rail routes have also been expanding in categories, from electronics and grocery products initially to some 200 categories including mechanics, chemical products, textiles and foods.

Local products in Xinjiang have also caught these trains heading for Europe. For example, locally produced tomato ketchup has arrived at the dinner tables of Italians, thanks to the train service.

The Alataw Pass and Horgos of Xinjiang are the two ports through which the trains enter or exit China.

Wang Chuanjie, head of the Alataw Pass Customs, said the port now sees an average of seven international trains passing through it every day, compared to only one every month several years ago.

Staff at the two ports have been working to improve customs clearance efficiency for the trains, from 24 hours previously to less than 14 hours.

Ning Jizhe, deputy director of the National Development and Reform Commission, said earlier this year that more places would be connected by the China-Europe trains.

China will continue promoting the commercialization of the trains and upgrade the trains with digital technologies, he said.

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The game is up: you cannot install and run 5G without Huawei

For some time now, Huawei has been quietly confident that no-one else has the ability to install and deploy 5G technologies without involving Huawei itself.

Now the new figures are out from the World Intellectual Property Organisation (WIPO). In 2018, Huawei’s had 5,405 PCT (Patent Cooperation Treaty) applications, which – as Francis Gurry, the director of WIPO observed – is “an all-time record by anyone.” By comparison, the runner-up was Mitsubishi, in Japan, with 2,812.

And the vast majority of Huawei’s patents relate to 5G, to which the company has been devoting world-leading investment in research and development, backed strongly by the Chinese government.

Let me add that Gurry also pointed out that “Asia is now the majority filer of international patent applications via WIPO, which is an important milestone for that economically dynamic region and underscores the historical geographical shift of innovative activity from West to East.” WIPO statistics showed that 50.5 percent of all Patent Cooperation Treaty (PCT) applications filed in 2018 came from Asia, with Europe and North America accounting for about a quarter each.

What does all this mean for the future of 5G technologies, which can work more than 100 times faster than current systems. Let me quote the last part of an article from the People’s Daily:

“Our absolute competitive advantage in 5G is also another reason [for the lead in global patent applications],” the Huawei spokesperson said.

The year of 2018 was a key year for 5G development, and Huawei has been concentrating its research efforts on the next generation of wireless technologies since 2009.

The number of patents Huawei filed that were related to 5G also accounted for a large part of all the patent filings by the company, the spokesperson said.

Despite the US-led crackdown on the Chinese company, industry representatives have acknowledged that Huawei is a leading 5G player with the highest count of 5G 3GPP contributions and therefore not easily substitutable.

The New York Times said on Sunday that the US campaign to ban Huawei overseas is stumbling as its major allies resist.

“Huawei is one of the leaders in the 5G space with substantial influence and significant contributions,” Charlie Dai, principal analyst at American consultancy Forrester, told the Global Times on Tuesday.

According to the latest figures intellectual property tracker IPlytics GmbH published in February, Huawei holds 1,529 5G standard essential patents, ahead of Nokia, which holds 1,397. Samsung has 1,296 and Ericsson holds 812, the analyst noted.

“Technically it is possible to find workarounds regarding Huawei’s technology, but it would be a huge waste of money and not beneficial for the whole ecosystem,” he said.

The game, it would seem, is up. If you want 5G and all that it enables, you will have to work with a Chinese company like Huawei. Indeed, the major tech companies in other parts of the world have already realised this. They have ignored the politically-motivated efforts of a small number of former colonisers and already signed up to work with Huawei.

Why is the debate concerning the socialist market economy settled in China?

When I asked a Chinese colleague recently about the socialist market economy, he said ‘why would you be interested in that? The debate is settled and no-one is much concerned with it’. I did point out that some international observers still do not understand the socialist market economy. For example, the EU acknowledges that China has a socialist market economy, but then misunderstands it: for the EU, it entails state ‘intervention’ in an autonomous ‘market’. Nothing could be further from the truth, for they use the framework of a capitalist market economy.

In my ongoing research, I have come across what is widely recognised as the most influential study on the socialist market economy, one that largely settled debates and defined the breakthrough. It is by Huang Nansen and entitled (in English translation), ‘The Philosophical Foundations of the Theory of the Socialist Market Economy’ (Marxism and Reality, 1994, pp. 1-6). Huang identifies two philosophical questions that lie at the basis of the theory and practice of a socialist market economy: contradiction analysis of socialist society; the relationship between universality (pubianxing) and particularity (teshuxing).

Contradiction Analysis

In terms of the first, he draws on an assumed approach that has much depth in Chinese Marxism: contradiction analysis. Briefly put, in his 1937 Yan’an lectures on dialectical materialism, one of Mao’s major breakthroughs was the necessity of contradictions after a communist revolution and during the long construction of socialism. The key text would later, with revisions, appear as ‘On Contradiction’ (1937), to be followed by ‘On Correctly Handling Contradictions Among the People’ (1957). For Huang, the important points are, first, that Mao identified the basic contradiction as one between the forces and relations of production, or between the economic base and the superstructure, and, second, that such contradictions should always be managed in a way that is non-antagonistic (feiduikangxing de maodun). While the second point is a given and remains a cornerstone today, Huang faults Mao for his misdirected application of the first. Thus, Mao felt that the manifestation of this contradiction appeared in terms of ownership: if the basic contradiction of capitalist society is between socialised production and private ownership of the means of production, then socialism should overcome this contradiction through public ownership of all means of production. The result, argues Huang, was a decline in production.

Instead, the way the forces-relations of production contradiction appears is not in terms of productive forces and ownership, but between productive forces and economic structure (jingji tizhi). With this breakthrough – enabled by the circle around Deng Xiaoping – it was possible to develop a socialist market economy. To find out how, and indeed what ‘economic system’ means, we need to wait until the next section, for he now addresses the relationship between a planned economy and a socialist market economy. Was the former a mistake? No, for it is appropriate immediately after a communist revolution, but only for a specific period. A planned economy works initially to liberate and develop productive forces, but eventually its limits appear and further development requires a shift to a socialist market economy. I am not sure this temporal argument is the best way to see the relationship between planned and socialist market economies, for they both continue to work together (more later).

Finally (for this section on contradiction analysis), does this argument entail a shift away from public ownership? Not at all, but once ownership is not seen as the primary contradiction, both public and private may develop in a symbiotic relationship, albeit with private ownership in a recognised but subordinate role. Let me add here that twenty-five years later this question takes on a whole new dimension, so it requires further work.

Universality and Particularity

The second philosophical problem concerns universality (pubianxing) and particularity (teshuxing), or what he also calls commonality (gongxing) and individuality (gexing). Succinctly stated, Huang’s argument is while a market economy is a universal or common reality, its integration with a capitalist or socialist socio-economic system evinces the particularity of each type of market economy.

This argument is based on a crucial terminological distinction, between a structure and a system. The Chinese terms are tizhi (体制) and zhidu (制度), which are somewhat difficult to translate in a way that indicates their differences, for they are often rendered with the same words in English. Tizhi in this case is a specific organisation, arrangement, method or structure. For the sake of conciseness, I use ‘structure’. For example, Huang speaks of a ‘market economic structure [shichang jingji tizhi]’ In his argument, this structure is clearly a component or part of a larger system. The term for this overall and foundational system is zhidu, which embraces the realms of politics, economics and society. To make his usage clear, Huang refers to the ‘basic economic system of society [shehui de jiben jingji zhidu]’, which may – in this context – be either capitalist or socialist. It follows that a specific structure, whether a planned economic structure or a market economic structure, may be a universal, while the overall system is a particularity.

With this distinction, Huang points out that in the past it was not common to distinguish between the two, for reasonably good historical reasons. Thus, the market economic structure was seen as inseparable from a capitalist system, while a planned economic structure was part and parcel of a socialist system. But historical developments since the Second World War have indicated the increased tendency in capitalist systems for planned structures, while in socialist systems – he notes Yugoslavia – some elements of a market economic structure began to emerge. These developments enabled the awareness of the distinction between specific structure and overall system. The outcome: it is quite possible, if not necessary, for a basic socialist socio-economic system to make use of a market economic structure. This was, he points out, the distinct insight of Deng Xiaoping and his comrades.

Of course, this raises the question: is a market economy neutral, like machinery or the natural sciences. Not at all, for as a market economy is integrated within the overall system, its nature is shaped by that system. Thus, a socialist market economy is qualitatively different from a capitalist market economy. Now the relationship between universality and particularity takes another turn: while a market economy may have a basic commonality, in terms of the means and basis for the logistic functions of a market economy, it also takes on the specificity of the system in which it is shaped, whether socialist or capitalist. The conclusion is that one may therefore speak of a socialist market economic structure (tizhi) within a socialist system (zhidu).

The final matter concerns what distinguishes the socialist market economy. Huang identifies five features: 1) It contains a multiplicity of components, but public ownership remains the core economic driver; 2) While enterprises in a socialist market economy must be viable, their main purpose is not profit at all costs, but social benefit (gongtongti fuwu) and meeting the needs of all people; 3) It deploys the old socialist principle of from each according to ability and to each according to work, limiting exploitation and wealth polarisation, and seeking common prosperity; 4) The guide for action (to parse Engels) always remains Marxism; 5) The primary value should always be socialist collectivism (shehuizhuyi de jitizhuyi) rather than individualism.

Huang closes with a timely warning: the shift to a socialist market economy is by no means easy, for it entails profound social transformation, which will entail many unforeseen problems and challenges ahead.

I have taken some time with this contribution, since Huang’s sophisticated analysis effectively summed up debates and established the philosophical foundations for a socialist market economy. Many of his insights remain valid and one can see how they have been and are implemented, albeit not without a few significant problems on the way. At the same time, it is twenty-five years since Huang’s study and Chinese socialism, let alone the socialist market economy, have taken some major steps. The tell-tale signal is the awareness that China has almost achieved the ‘great leap [weida feiyue]’ to socio-economic wellbeing, and that it is embarking on the leap to become a strong socialistically modernised society. Or, as it was put at the nineteenth congress of the CPC, China has entered a ‘new era [xinshidai]’.

At least three questions remain from Huang’s analysis, especially in light of developments in the last two decades: 1) The delinking of ‘market economy’ from a capitalist system, in light of Marx’s analysis (in Capital, vol. 3) and historical examples; 2) The issue of ownership and the withering away of the distinction between ‘public’ and ‘private’; 3) The shift in a socialist market economy from being a component to basic logistical device. These are the subjects of further analysis.

Xi Jinping on Marxism: Reading the Speech from Marx’s 200th Anniversary

Xi Jinping’s most important speech to date was delivered at the celebration of the 200th anniversary of Marx’s birth (5 May, 2018). Xi’s many other writings address a range of issues, but this one – as yet untranslated – goes to the heart of Chinese Marxism, or more properly, the sinification of Marxism. Given that the speech is not yet available in other languages,[1] the following provides primarily an exposition of the speech, although my perspective emerges at certain points. In particular, my interest is in the way Xi Jinping clearly claims Chinese communism as a major phase of the living tradition of Marxism.

One is initially struck by how much Xi Jinping quotes from Marx, Engels and Lenin. Of course, one may think, Xi is a Marxist and he knows this material well. But let us step back for a moment: here is a leader not merely of the strongest communist party in the world, but also the leader of a major global power, quoting extensively from the founders of the Marxist tradition. It is indeed some time since this has happened, but Xi continues in the tradition of communist leaders: they are also thinkers and philosophers, who develop a substantial body of writings that can be studied in their own right.

The speech itself has three sections, after an introduction that elaborates briefly on Marx’s continued influence on the world. Here Xi already identifies a recurring theme: the world may have changed much since Marx’s time, but this context makes Marxism not less but more relevant than ever. The first section focuses on Marx’s biography, which is both appropriate but also significant in a Chinese context. The second section introduces the basic premises before leading to the situation in China. The third and final section is the longest and most significant, for it develops nine topics concerning the importance of Marxism for China. Each topic begins by quoting texts from Marx and Engels, which are then used to explicate the developments of Chinese Marxism. Notably, it is an interpretation that takes place after 70 years of socialism in power; as Lenin and Mao said repeatedly, it is relatively easy to gain power through a communist revolution, but the task of constructing socialism, let alone communism, is infinitely more complex. This is Xi’s perspective.

The Biography of an Engaged Intellectual

Marx’s biography takes up a reasonable part of Xi’s speech. Xi hits the main points of Marx’s ideas, the meeting with Engels, the development of the first outline of historical materialism in The German Ideology, the profound influence of the communist manifesto and the detailed labour involved in Capital. So much is well-known, even to drawing on Engels and Lenin for additional perspectives on Marx’s genius.

But I am intrigued by a particular emphasis: Marx came from a situation – a lawyer’s family of Jewish background in southwest German town of Trier – that may have set him up for a comfortable and unremarkable life. But he and Jenny (who is explicitly mentioned) did not do so. They found themselves exiles and pariahs, mostly through circumstances beyond their control but also due to the direction of their thought and action. Xi stresses the hardship of a life on the run, all for the sake of what became the communist cause.

Xi’s emphasis plays off two themes in Chinese culture, themes that stand in tension with one another. On the one hand, one desires a life of good fortune and opportunity, not least for the benefit of the children, but also so that one may care adequately for one’s parents in their dotage. On the other hand, one’s calling is not merely to the family, however wide it may be. It is ultimately and more importantly to society as a whole. Security and stability should be put aside for the sake of the greater good. Thus, even though one may aspire to a quiet and secure life, Karl and Jenny’s path is by far the more admirable calling.

Let me go further: the idea of an intellectual in the proverbial ‘ivory tower’ is anathema in China. Selfishness is the only way to describe it, so much so that it is difficult indeed to find an intellectual who disdains to engage with social problems. In other words, the ‘engaged intellectual’ is the norm, even if it entails significant sacrifice. Marx is precisely such an intellectual, forsaking all for the sake of a greater and common good.

Given the way Marx’s life resonates so deeply with Chinese assumptions, it should be no surprise that by far the most visitors to the tiny two-room apartment in Dean Street, Soho, should be Chinese. Or indeed that Trier, Marx’s birthplace, should be a prime destination for Chinese people in 2018. It is not merely because the stunning new statue in Trier was created by Wu Weichan, the famed Chinese sculptor, and donated to the town, but because this is where the hard life began.

Theory and Practice

As a prelude to his engagement with Marx’s thought and practice, Xi emphasises its basis in careful historical and scientific study so as to become a material force for liberation. Five statements set the scene for what follows:

Basic Premises

Marxism is a scientific theory: in contrast to utopian socialism,[2] Marx developed a thorough explanation of historical material, the theory of surplus value, the specific dynamics of capitalist development, the nature of social development and the means for liberation.

Marxism is a theory of the people: in contrast to ruling class theories, Marxism arises from and expresses the common people’s hope for a society without oppression and exploitation, and with equality and freedom.

Marxism is a theory of practice: rather than knowledge created in a study, Marxism was formed out of the practice of liberation and this becomes a guide for such liberation.

Marxism is an open and developing theory: here we find the refrain that Marxism is not a dogma (jiaotiao) but a guide to action. Times, practices and knowledge change and develop, so new questions arise to which new responses need to be formed. In this light, the tradition begun by Marx becomes important, full as it is with examples of how Marxism has developed. Thus, Marxism remains forever young and suitable for ever new situations.

The scientific and practical dimensions are understandable emphases, but the focus on the people and openness have distinct resonance for a Chinese situation. A signature feature of Xi Jinping’s writings and speeches is a constant focus on the importance of work and the people. He has emphasising for some time the centrality of labour,[3] of both the rural and urban varieties: labour is a glorious activity; everyone should roll up their sleeves and get to work; workers and trade unions have a distinct and foundational role in the construction of socialism. This is what Xi means by observing that Marxism arises from the people and is for the people. Further, the tradition is vital. Marxism is not an ossified body of thought, determined forever by the letter of the founder’s texts. Instead, it provides a framework and a guide for new situations that Marx could hardly have imagined, let alone analysed scientifically. We will return to some of these points in what follows.

Marxism and Anticolonialism

With this point – concerning a guide for action rather than fixed dogma – Xi moves into the Marxist tradition, which he identifies as beginning with ‘The Manifesto of the Communist Party’. The way he presents it is crucial: initially, the theory of Marx and Engels inspired global workers’ movements and political parties, which took hold of their own destiny; with Lenin and the October Revolution, there was a crucial shift from theory to practice, in revolution and the construction of socialism; after the Second World War, more revolutions – such as China – developed yet another level of global socialist development; crucially, Marxism through Lenin inspired national liberation movements in colonised and semi-colonised countries, with more and more countries achieving liberation from colonial masters in the second half of the twentieth century.

Let me dwell on this point for a moment, since a number of foreign Marxists have unfortunately forgotten or neglected this important point. Implicit in Marx and Engel’s concerns with colonised and semi-colonised areas of the world and in Lenin’s concerns with imperialism and the ‘national question’ (minority nationalities within the state) in Russia, the breakthrough came in the 1930s with Stalin. It became clear that not only was the October Revolution also a national revolution, but that the global anticolonial struggle was the logical outcome. In other words, Marxism in its focus on overthrowing capitalist imperialism was also a deeply anticolonial project. As Xi Jinping puts, the Marxist-inspired anticolonial struggles and the liberation that followed ‘completely disrupted the imperial colonial system’. In many respects, China today – with other socialist states – carries on this project.

Marxism in China

This point brings us to the next topic, which concerns the central role of Marxism in China. Indeed, Marx foresaw (yujian) the birth of Chinese socialism itself, if not the People’s Republic. Xi reiterates a common narrative in China, from ancient civilisation, through brutal semi-colonial subjection to foreign powers, through the inspiration of the October Revolution, to liberation and the construction of socialism in China, which are leading to the rejuvenation of China. Let me pick up a number of emphases in this section.

To begin with, Xi makes it very clear that the Chinese project is inescapably a Marxist project. This emphasis not only reminds those in China who a decade or more ago were entertaining other possibilities – whether a liberal bourgeois path (despite Deng Xiaoping’s warnings in the 1980s), a revived Confucian path, or indeed a return to the trauma of the Cultural Revolution. Instead, Marxism is core and centre of the path China continues to take.

How so? The key is a combination of the basic principles of Marxism with the concrete realities of the Chinese context. One finds this emphasis right through from Mao and Deng to Xi. These basic principles – philosophy, political economy and scientific socialism – are a major feature of study and policy guidance in China. But they cannot be applied as a fixed and ossified dogma, for they are – as already mentioned – a guide to action. This emphasis is also expressed as ‘seeking truth from facts’, which has a distinct sense in a Chinese context: the specific historical, economic and cultural situation of China presents new problems which require new solutions, albeit always in light of the basic principles of Marxism. Or as Xi emphasises again and again – drawing directly on Mao – practice is the test.

All of this leads Xi to assert that ‘only socialism can save China’, indeed that the historical path of China has led to the ‘iron fact’ that only Marxism could provide the practical and ideological basis for struggle, standing up and becoming prosperous. Or, in Xi’s favoured phrases, only the communist party can lead China to the ‘great rejuvenation [fuxing]’ and a ‘strong socialistically modernised country’.

Let me say a little more concerning this notion of rejuvenation. Another significant term Xi uses is ‘leap [feiyue]’, especially in terms of three historical periods. Thus, he speaks of the ‘great leap [weida feiyue]’ China undertook, under communist party leadership, from being the ‘sick man [bingfu]’ of Asia to a liberated country; the ‘great leap’ of the reform and opening up, which has led to China becoming a country of abundance; and the ‘great leap’ of the new era, which has led to China being not only abundant, but also strong. Here the ‘great leap’ is equated with ‘rejuvenation [fuxing]’. Initially, we may be reminded of Mao’s controversial ‘great leap forward [dayuejin]’, but Xi’s usage is different. The key is his thrice repeated use of the ‘ironclad factual proof’ of Marxism that has enabled these leaps. In other words, we need to understand the usage of leap in terms of the Marxist tradition: Xi is indicating in his own way that China is undergoing yet another dialectical leap (bianzhengfa feiyue). It is not simply a case of ‘catching up’ with the rest of the world, but of undertaking a dialectical leap into the future.

Study Marx

The next part of the speech is the longest and most crucial, for here Xi stresses the reasons why Marx should be studied and practiced today. Urging all party members, as well as the common people, to study Marx once again in the new era, he does so with nine propositions. Each begins with the phrase ‘study [xuexi] Marx’ and a quotation or two from Marx and Engels, which is then elaborated in light of the Chinese situation.[4]

  1. Development of Human Society (renlei shehui fazhan)

The first quotation comes from the manifesto, where Marx and Engels speak of a future society, beyond bourgeois society, which will be an ‘an association, in which the free development of each is the condition for the free development of all’.[5] And in the words of the final flourish of the manifesto, ‘The proletarians have nothing to lose but their chains. They have a world to win’.[6] The Chinese translation of ‘Assoziation’ is ‘lianheti’, which designates an organic whole, a connectivity of all parts. It is, of course, another way of speaking of communism.

Is the communism Xi mentions a utopian and transcendent ideal, forever delayed because it is ultimately unachievable? This may be a western European understanding, but it is certainly not a Chinese one. Xi speaks of the inevitable process of human history, of mastering the development of human society, of confidence in and adherence to the ideals and beliefs of communism. He does not shy away from the core goal of the communist movement and the necessary development of human society.

Let us see how this works. Some key phrases provide an insight: Xi speaks of realising the goal ‘step by step [yibuyibu]’; the constantly changing ‘actual movement of the existent [xiancun] situation’; and that the historical process of actualising communism entails ‘one-by-one phased goals [yigeyige jieduanxing mubiao]’ and is ‘reached [dacheng]’ progressively or ‘step by step [zhubu]’. In other words, communism is always a work in progress, rather than a reality achieved by fiat.

We should also understand this concrete and practical approach in light of the Chinese tradition, which Xi Jinping has – once again – been actively reframing in light of Marxism. From the Book of Rights (third to second century BCE) and especially the commentary by He Xiu (129-82 CE) on the Gongyang Commentary on the Spring and Autumn Annals,[7] we find that the much-desired society of ‘Great Peace’ is not one that is beyond our knowledge and expertise, not an imagined utopia or ‘no-place’ about which we can know only by rumour and hearsay (suochuanwen).[8] Instead, it is a verifiable (suojian) and recorded (suowen) society; one can see it and read about it in reliable records. In other words, it is an empirical reality. To get there, we need careful planning, much testing, trial and error, considerable effort – in short, it entails ‘struggle for all one’s life [fendou zhongshen]’, as Xi puts it at the close of this first point.

  1. Sticking to the People’s Standpoint (jianshou renmin lichang)

On this point, the key quotation comes from The Holy Family: ‘Historical activity is the activity of the masses’,[9] which becomes the basis for a resolute focus on the people and the mass line. The point should be clear: the people’s standpoint (lichang) is basic and foundational (genben). Three times does Xi use genben – foundational – to indicate the party’s stand, mission and purpose. What mission? The people’s wellbeing and happiness. What purpose? Serving the people with whole heart and whole mind (quanxin quanyi). This is followed by the invocation not only of Mao – in terms of the mass line and keeping flesh-and-blood ties (xuerou lianxi) – but also of a slogan Xi had already stressed at the nineteenth congress of the CPC (November 2017): ‘forget not the original desire, keep in mind the mission [bu wang chuxin, laoji shiming]’.

Notably, this point concerning the people’s standpoint comes high up in the list of nine points, since (as indicated earlier) the focus on the common people (laobaixing), on urban and rural workers, has been one of Xi’s signature emphases. So effective has been the focus that they increasingly feel – as has been said to me on a quite a number of occasions – that Xi is ‘pretty good [bucuo]’, by invoking Mao and having their interests at heart.

  1. Productive Forces and Relations of Production (shengchanli he shengchan guanxi)

The quotation around which this important point turns comes from Marx and Engels’s The German Ideology: ‘the amount of productive forces accessible to human beings determines the condition of society’.[10] This is a well-known feature of dialectical and historical materialism: not only is the ‘base [jichu]’ determinative, but the means and relations of production, the economic base and superstructure, act in a dialectical manner of mutual constraint and advance, so as to become the motor of development. This much Xi Jinping reasserts.

But now he makes a fascinating move: it also provides the basis for socialist construction in terms of liberating (jiefang) and advancing (fazhan) the productive forces. Too many Marxists have taken the method – in relation to forces and relations of production – from Marx and Engels and applied it mostly to the capitalist market economy. But this move is actually a retreat from their work: thus, it is not for nothing that Xi quotes from the (edited) opening section of The German Ideology, for here we also find the first real outline of the history of modes of production until the European feudal period.[11] And if this works for earlier history, it also works for future history, namely, the construction of socialism. In particular, Xi stresses the insight from Deng Xiaoping, that the liberation of the productive forces is the core project of socialism, let alone communism. Deng did so repeatedly, pointing out that such a liberation had been relatively neglected until it became the focus of the reform and opening up from 1978. The result: in an astonishingly short period of time, China has lifted itself up from being one of the poorest countries in the world to being a serious global economic force. But the process is by no means over, for – as he does on many occasions – Xi stresses that further liberation is needed, that the relations between base and superstructure need constant refining and adjusting, and that the reform and opening up – as a revolutionary socialist project – must be deepened.

  1. People’s Democracy (renmin minzhu)

Not only has Xi Jinping for some time been emphasising socialist democracy, but he has also given the implicit go ahead – in light of the urging to tell China’s story well internationally – for Chinese speakers to address this question directly in international contexts. On this occasion, he quotes two texts by Marx and Engels, the first from the manifesto: ‘The proletarian movement is the independent movement of the immense majority, in the interest of the immense majority’.[12] And: ‘The working class, once come to power, could not go on managing with the old state machine’, for it requires a ‘replacement by a new and truly democratic one’.[13] The first text is the more obvious, for communism has always held that its form of democracy – in contrast to ancient Greek, liberal bourgeois and illiberal types – enables the vast majority, workers and peasants, to rule. It is the people who rule; this is what ‘demokratia’ or ‘minzhu’ means.

The second quotation is more intriguing and extremely important. It comes from Engels’s 1891 introduction to the third edition of Marx’s The Civil War in France. Why this text and not the one we find in The Civil War in France, which has – in the original English – ‘But the working class cannot simply lay hold of the ready-made State machinery, and wield it for its own purposes’?[14] Why indeed, for they seem to say largely the same? Let me briefly set the context. In the 1890s, Engels was struggling against both the moderating trend of the German Social-Democratic Party and the entrenched anarchist position (first clearly articulated in the 1870s). The moderates wanted to dispense with any notion of violent revolution and dictatorship of the proletariat after such a revolution, while the anarchists insisted that the first act after the seizure of power should be an active ‘abolition [Abschaffung]’ of the state. Thus, the moderate right-wing sought to work within the structures of the bourgeois state and the anarchists trenchantly asserted that any type of state was an evil. Engels would have nothing of either position: in a series of crucial texts,[15] he argued, on the one hand, that the Paris commune was also very much the proletarian dictatorship, and, on the other, that the ensuing structure would have many governing functions. One feature of this new structure was that it would be ‘truly democratic’.

Given its importance, Engels’s text needs some more attention, especially the second sentence from which Xi Jinping quotes. Engels writes: ‘This shattering [Sprengung] of the former state power [Staatsmacht] and its replacement by a new and truly democratic one [eine neue, in Wahrheit demokratische] is described in detail in the third section of The Civil War.[16] Understanding this sentence is crucial. In light of Engels other works at the time, the following points are clear: 1) The new structure includes both commune and proletarian dictatorship as one and the same, which must exercise force (Gewalt) to get rid of the old bourgeois regime and transform economy and society; 2) The old form of the state, as a ‘separated public power’ (as defined in Origin of the Family), will undergo a ‘gradual dissolution and ultimate disappearance [allmähliche Auflösung und endlich das Verschwinden]’ as ‘one of the final results of the future proletarian revolution’[17] – this is the sense of the fabled ‘dying away’ of the state, a term coined in the third edition of Anti-Dühring;[18] 3) The eventual form of governance will not be a ‘separated public power’, but one that ‘stands in the midst of society [steht eben mitten in der Gesellschaft]’[19] – that is, state and society are thoroughly enmeshed with one another, in a dialectical transformation of ‘pre-state’ forms of governance; 4) This is the sense in which socialist democracy should be understood, which is ‘for those concerned [der Betheiligten]’, that is, the vast majority of workers and peasants who had thus far been excluded from the exercise of power.[20]

Back to the sentence on which we have been focusing: its logic leads to the position that a new and truly democratic form of governance, if not a new state standing in the midst of society, will arise – as some English translations and the Chinese translations make clear.[21] From this basis, Xi argues that China must continue to build ‘socialist democratic politics [shehuizhuyi minzhu zhengzhi]’. What does this mean? It entails that – using one of the many four-character sayings (chengyu) beloved by Xi – that the people are masters in the house (dengjia zuozhu), supervising the servants of society (shehui gongpu) through the socialist rule of law and institutional guarantees. All of this, of course, take place in the ‘organic unity [youji tongyi]’ of all parts, especially in terms of the communist party’s leadership and people’s supervision. In short, it entails a constant process of implementing people’s democracy ever more effectively.

  1. Cultural Construction (wenhua jianshi)

Here Xi Jinping does not quote Marx or Engels directly. Instead, he points out that Marx ‘held that in different [butong] economic and social environments, people produce different thoughts [sixiang] and cultures’. This awareness actually entailed some struggle on Marx’s part, for he assumed that the positions he had developed in a Western European context were universal. Only late in life, as he engaged more with developments in other parts of the world, did he come to realise that his insights were in many cases ‘expressly limited [expressément restreinte] to the countries of Western Europe’.[22] This comes from a letter to Vera Zasulich, which was finally sent after four drafts, the first three much longer than the final letter.[23] In these drafts, we find a Marx struggling in light of his growing awareness of different histories and developments. Like a good old German philosopher, he had assumed that German philosophy, if not Western European philosophy, was ‘philosophy’ per se. Now he finds increasingly that this is not the case. So, in the drafts Marx elaborates further on the theme, dealing with the transition from feudalism to capitalism, the role of private property and the potential of the Russian agricultural commune (a topic Engels was exploring more deeply and widely at the time). The point is obvious: economic and social conditions, in light of their histories, are in fact not the same. This means that their potential paths to socialism will also have distinct differences.

These letter drafts and the letter itself are the subject of continuing study in China,[24] since there has always been a great awareness of the distinctness of Chinese history, political development and culture.[25] At so many levels, they are not the same as other parts of the world, for which the phrase ‘Chinese characteristics [zhongguo tese]’ – already emphasised by Mao Zedong – functions as the shorthand.

In order to explicate how China’s context works for the sake of cultural construction, Xi draws on a Marxist staple, which runs from Marx and Engels through the whole tradition. While ideology and culture are ultimately determined by the economic base, they also respond to and influence the base. Marxist theory is the obvious example, for it comes – through the communist party – to grip the masses and become a material force. But only advanced theory, advanced Marxist philosophy and culture, can become such a force. By contrast, if culture and ideology are backward, they become fetters on social development.

But what culture? Here we need to pause for a moment, since the Chinese term wenhua, culture, is a much broader concept that ‘culture’ in English. It embraces the all dimensions of what may be called the ‘superstructure’, but also history and politics. In this light, it is common to distinguish Chinese traditional culture and Marxist culture, but Xi has been responsible what is now known as a renewed symbiosis between them. Thus, we find emphases on continual in-depth study of Marxism by all party members (monthly), ‘core socialist values [shehuizhuyi hexin jiazhiguan]’,[26] socialist ‘spiritual civilisation [jingshen wenming]’ – in short, ‘advanced socialist culture’. But are they distinct from traditional Chinese culture? Not for Xi and many others, for socialist culture is increasingly seen as central to a ‘creative transformation’ and ‘innovative development’ of this long-standing and constantly changing culture. It is not for nothing that Xi has often observed that socialism with Chinese characteristics has a two thousand year history.

  1. Social Construction (shehui jianshe)

On the question of social construction – as distinct from but obviously related to productive forces, political structures and culture – Xi Jinping quotes from three texts. Note the emphasis in these quotations: for all, of all, by all, and to all.

The first comes from Marx’s economic manuscripts of 1857-1858 (also known as the Grundrisse), where Marx observes that ‘production will now be calculated to provide wealth for all’.[27] The second is a well-known text in China – Engels’s communist catechism, which formed a major basis for the later manifesto. Here Engels observes that a communist society would enable ‘the participation of all in the enjoyments created by all’.[28] The third text sums up the direction of the previous two, if not the aims of communism itself: a socialist society should ‘give healthy and useful labour to all, ample wealth and leisure to all, and the truest and fullest freedom to all’.[29]

As mentioned earlier, the emphasis is clearly on all people – suoyouderen – which is repeated in each quotation. Or as Xi puts it in terms of the new primary contradiction in China, people long for a beautiful and good life (meihua shenghuo).[30] What does this mean? Abstractly, it means improving livelihood, social justice and better education; practically, Xi identifies adequate income for labour, medical care for the sick, support for the aged, housing in which to live, and support for the frail. In short, it entails not so much a ‘welfare safety net’ found in some capitalist market economies, but ‘common prosperity [gongtong fuyu] for the whole people’ and not merely for a few. I would add that one needs a strong economic situation to ensure such a system, for the liberation of the productive forces (see above) is the key, leading to the current situation in which 700-800 million urban and rural workers have been lifted out of poverty since the beginning of the reform and opening up.[31]

  1. Human-Nature Relationship (ren yu ziran guanxi)

Xi Jinping has been promoting for some time the concept and practice of ‘ecological civilisation’ and he does not neglect the theme here. The relevant text quoted here comes from Marx’s ‘Economic and Philosophic Manuscripts’ of 1844. Simply put: ‘Human beings live on nature’.[32] Alluding to the rest of this sentence from Marx,[33] Xi observes that it is an interactive (huodong) relationship: if human beings treat nature well (shandai), nature will present gifts (kuizeng) of food – an old agricultural assumption. But – and here Xi quotes a text by Engels well-known in China, ‘On Authority’ – ‘if human beings, by dint of their knowledge and inventive genius, have subdued the forces of nature, the latter avenge themselves upon them’.[34] All of this requires not simply the protection of the natural environment, as though human beings are separate from it, but working in terms of ‘harmonious symbiosis [hexie gongsheng]’ and ‘ecological civilisation [shengtai wenming]’. It is not for nothing that China is emerging as a world leader in green technology and ecological design.

  1. World History (shijie lishi)

As for world history, Xi quotes from The German Ideology: ‘the more the original isolatio[n of the separate nationalities is destroyed by the advanced mode of production, by intercourse and by the natural division of labour between various nations arising as a result, the more history becomes world history’.[35] For Xi, this prediction has already come about today in an integrated world, where the one who rejects such a world will be rejected by it. Here we find phrases and slogans that have become common parlance: ; win-win (gongying) cooperation, and community of common future or destiny (renlei mingyun gongtongti).

Nonetheless, let me focus on a few items from this point. The first concerns Xi’s observation: ‘neither dependent [yifu] on others, nor plundering [lüeduo] others’. This is of course an allusion not only to the era of European colonialism, but also to efforts by some countries today to harness others in the world their yoke (the United States being the obvious example). In reply, Xi draws on and maps further the long anticolonial project (see above), which was from the 1930s deeply Marxist in many parts of the world. It may be seen today in the Belt and Road Initiative, as well as the Asia Infrastructure Development Bank and the Shanghai Cooperation Organisation, if not also BRICS. Some may ask: but is not China engaged in a new form of colonialism, a ‘creditor colonialism’ if you will? Apart from observing that it is little rich for former colonisers to accuse China of colonialism, I am reminded of the Danish proverb: a thief always thinks everyone else is a thief. Others may ask: what about the ‘global’ opposition to China, so much so that today it has few if any friends? It all depends on what one means by ‘global’? Somewhere between 12 to 15 ‘Western’ countries – former colonisers all – have been ramping up the ‘China threat’. But the number is small indeed. The reality is that the vast majority of countries in the world see a distinct benefit – ‘win-win’ – in accepting China’s offer of friendship.

The second point that arises is somewhat different. It concerns the sentence: ‘All things are nourished together without their injuring one another [wanwu bing yu er bu xiang hai, dao bingxing er bu xiangbei]’. This saying has been used by Xi on a number of occasions, but it is not original to him. Instead it comes from the Confucian Book of Rites, in the ‘Zhongyong’ section.[36] This is by no means the first, nor will it be the last time, Xi has quoted from the Chinese classics. Indeed, such is his liking for doing so, along with his love of four-character sayings, that two volumes explaining the origins and uses of these texts have been published thus far.

  1. Marxist Party Building (makesizhuyi zhengdang jianshe)

What do Marx and Engels have to say about Marxist party building? More than one might initially expect, especially in the second section of the manifesto. Xi offers no less than four quotations: 1) ‘In the various stages of development which the struggle of the working class against the bourgeoisie has to pass through, they [the Communists][37] always and everywhere represent the interests of the movement as a whole’;[38] 2) ‘They have no interests separate and apart from those of the proletariat as a whole’;[39] 3) The party works ‘in the interest of the immense majority’;[40] 4) And the communist party has ‘‘to set up bench marks [Marksteine] for all the world to see, whereby it may gauge how far the party has progressed’.[41]

In following Xi Jinping’s interpretation, let me begin with a small but significant linguistic point: the Chinese for ‘Communist’ – the noun – is ‘gongchandang ren’. Literally, it means a ‘Communist Party person’. In other words, to be a Communist is not so much an existential political choice or an individual faith. It means primarily that one is a member of a Communist Party. Indeed, one is able to call someone else a genuine ‘comrade [tongzhi]’ if that person is also a party member. Of course, one also needs the element of ‘faith [xinyang]’ – as Xi has been emphasising for some time – but it takes place within the collective context. Conversely, the idea that one can ‘be’ a Communist as a matter of existential choice without party membership is a very ‘Western’ idea, where the primacy of the autonomous individual has wreaked havoc with culture, politics and even religion. Instead, the Chinese approach primarily concerns belonging to the collective – hence ‘Communist Party person’.

Further, in each of the quotations from Marx and Engels, the emphasis is clearly on the interests of the proletariat and movement as a whole, if not the interests of the immense majority. Xi has not chosen these quotations at random, for they emphasise that the basis of the Communist Party, and indeed its difference from other political parties, is that it works with and fights for the people. Everything flows from this primary premise. But it also raises the crucial question as to how the party maintains such a focus and continues to have the trust and confidence of the people after seven decades in power.

Before Xi Jinping became chairman (zhuxi), there were grave concerns that the party was losing this trust. Party discipline was relatively lax, corruption was a real problem, companies and enterprises were regularly flouting the law, exploiting workers and dispossessing the collectively-owned land of villages, and factional strife led to what is now recognised as the beginnings of a coup. As one old Politburo member admitted recently, if Xi did not fix the party, many felt they were doomed. That the party has not fallen apart and that trust in government and public institutions is now between 84 percent and 89 percent,[42] indeed that confidence in the direction China is headed stands at an average of 90 percent,[43] is testament to the effect of Xi Jinping’s reforms. It should be no surprise that we find here a summary of emphases found on many other occasions: party unity and strength, strict management, correcting mistakes, political and ideological knowledge of Marxism, and the unity of the party’s central authority – these have produced a Communist Party in China that is now stronger than it has been for a very long time. In typical fashion, Xi uses two four-character sayings to conclude this point: ‘tested by wind and waves [fenglang kaoyan]’ and ‘full of youthful spirit and vitality [zhaoqi pengbo]’. These are the characteristics of the Marxist party in power.

Conclusion: Marxism at the Centre

Everyone in China might have known right from the beginning that Xi Jinping is absolutely serious about Marxism, but – as is typically the case – the rest of world has taken some time to realise this reality. Indeed, some sleepy and lazy observers had concluded that China had abandoned Marxism, so much so that they are increasingly scrambling to make sense of what is happening under Xi Jinping’s leadership. If nothing else does so, this speech makes it perfectly clear that Marxism is core and centre of the Chinese socialist project. I have attempted to present as carefully as possible the important features of the speech, offering more of an exposition rather than a critique. No doubt, others may want to assess Xi Jinping’s interpretation of Marx and Engels in a Chinese context. My perspective may have emerged at certain points, but I have deliberately identified the sources of all the important quotations to indicate how extensively Xi cites and elaborates upon the classic texts.

As for the centrality of Marxism, Xi stresses that it applies to both theory and practice. On the one hand, the speech urges party members and indeed all Chinese people to make the study of Marx a ‘life habit’ and even a vigorous and ‘spirited [jingshen] pursuit’. Why? As a ‘powerful theoretical weapon [qiangda sixiang wuqi]’, ‘Marxism has from beginning to end been the guiding thought [sixiang] of our party and country’. Or, in terms of yet another four-character saying, Marxism is China’s special skill, or the skill with which one looks after the house (kanjia benling). But it is not merely thought, for in providing the means to understand the world, it enables one to ‘transform [gaizao] the world’. The echo of Marx’s eleventh thesis on Feuerbach should be obvious.

Here Engels is even more direct. Xi quotes Engels’s letter to Werner Sombart in 1895: ‘Marx’s whole way of conceptualising [Auffassungsweise] is not so much a doctrine [Doctrin] as a method. It provides, not so much ready-made dogmas [Dogmen], as reference points [Anhaltspunkte] for further investigation and the method for such investigation’.[44] This is a well-known text, which became in Lenin’s hands the slogan that Marxism is ‘not a dogma, but a guide for action’. It is difficult to find a communist who would not agree with this slogan, for no-one wishes to be seen as a dogmatic Marxist.[45] But now Xi Jinping challenges us with his second quotation from Engels, from Dialectics of Nature: ‘In every epoch, and therefore also in ours, theoretical thought is a historical product, which at different times assumes very different forms and, therewith, very different contents’.[46]

We need to be careful to avoid a wilful misinterpretation of Xi’s reason for quoting this second text. Engels is speaking of the history of scientific thought, but if one assumes that Marxism too is a science, a historical science, then the point applies to historical and dialectical materialism as well. But how? Here Xi follows Mao: the basic principles of scientific socialism can never be lost, but at the same time they cannot become an immutable and frozen (yicheng bubian) dogma. Thus, the complex process of the construction of socialism is neither an ‘original edition’ of Chinese history and culture, nor a ‘template’ applied from the classic Marxist texts, nor a ‘second edition’ of efforts to construct socialism in other countries, nor a ‘reprint’ of the process of modernization elsewhere.[47] Instead, one must take into account a country’s specific conditions, its history and culture, and always be aware of concrete requirements of the present.

In other words, Marxism is a work in progress. Not any Marxism, but the Marxism at the core of an ongoing project in the construction of socialism, with a communist party in power. In the context of such construction – which is simply beyond the experience of most foreign Marxists – Marxism is a living tradition and not locked in the past. Now Xi comes to his arresting conclusion: all this means that Marxism is even more important now! And it should be developed in new, creative and energetic ways. To do so is the ‘sacred duty [shensheng zhize]’ of every communist. To quote Engels one last time: ‘The prospect[48] of a gigantic revolution, the most gigantic revolution that has ever taken place, therefore presents itself to us as soon as we pursue our materialist thesis further and apply it to the present time’.[49]

To finish on a slightly different note: throughout the text and especially when Xi is elaborating on the nine core points, he begins each point with ‘study Marx’. The Chinese word for ‘study’ is ‘xuexi’. This usage has led to a pun used frequently today: the character xi is the same as the family name for Xi Jinping. So now it is common to use ‘xuexi’ to mean ‘study Xi’. Indeed, a whole section of the CPC newspaper, the People’s Daily, is entitled ‘study Xi [xuexi]’. Needless to say, the most important statement by Xi Jinping concerning Marxism has not only been a major impetus for renewed study – and practice – of Marxism in China, but is also the subject itself of much study.

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Marx, Karl. ‘Outlines of the Critique of Political Economy (Rough Draft of 1857-1858) [Second Instalment]’. In Marx and Engels Collected Works, vol. 29, 3-255. Moscow: Progress Publishers, 1857-1858 [1987].

Marx, Karl. ‘Premier projet de la lettre à Vera Ivanovna Zassoulitch’. In Marx Engels Gesamtausgabe, vol. I.25, 219-30. Berlin: Dietz, 1881 [1985].

Marx, Karl. ‘Quatrième projet de la lettre à Vera Ivanovna Zassoulitch’. In Marx Engels Gesamtausgabe, vol. I.25, 240. Berlin: Dietz, 1881 [1985].

Marx, Karl. ‘Troisième projet de la lettre à Vera Ivanovna Zassoulitch’. In Marx Engels Gesamtausgabe, vol. I.25, 235-39. Berlin: Dietz, 1881 [1985].

Marx, Karl. ‘Wei·yi·chasuliqi de xin, 1881 nian 3 yue 8 ri yu lundun xibei lu, meitilan gongyuan lu 41 hao’. In Makesi Engesi quanji, vol. 19, 268-69. Beijing: Renmin chubanshi, 1881 [1972].

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Marx, Karl, and Friedrich Engels. Deyizhi yishi xingtai. Dui Feierbaha, Bu·baowei’er he Shidina suo daibiao de xiandai deguo zhexue yiji ge shi ge yang xianzhi suo daibiao de deguo shehuizhuyi de pipan. In Makesi Engesi quanji, vol. 3, 11-640. Beijing: Renmin chubanshe, 1845-1846 [1972].

Marx, Karl, and Friedrich Engels. Die deutsche Ideologie. Kritik der neuesten deutschen Philosophie in ihren Repräsentanten Feuerbach, B. Bauer und Stirner und des deutschen Sozialismus in seinen verschiedenen Propheten. In Marx Engels Werke, vol. 3, 9-530. Berlin: Dietz, 1845-1846 [1973].

Marx, Karl, and Friedrich Engels. Die heilige Familie oder Kritik der kritischen Kritik. In Marx Engels Werke, vol. 2, 3-223. Berlin: Dietz, 1845 [1974].

Marx, Karl, and Friedrich Engels. The German Ideology: Critique of Modern German Philosophy According to Its Representatives Feuerbach, B. Bauer and Stirner, and of German Socialism According to Its Various Prophets. In Marx and Engels Collected Works, vol. 5, 19-539. Moscow: Progress Publishers, 1845-1846 [1976].

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Marx, Karl, and Friedrich Engels. ‘Gongchandang xuanyan’. In Makesi Engesi quanji, vol. 4, 461-504. Beijing: Renmin chubanshe, 1848 [1972].

Marx, Karl, and Friedrich Engels. The Holy Family, or Critique of Critical Criticism. In Marx and Engels Collected Works, vol. 4, 5-211. Moscow: Progress Publishers, 1845 [1975].

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Marx, Karl, and Friedrich Engels. ‘Shensheng jiazu, huo dui pipan de pipan suo zuo de pipan, bo bulunuo·baowei’er ji qi huoban (jiexuan)’. In Makesi Engesi wenji, vol. 1, 249-359. Beijing: Renmin chubanshe, 1845 [2009].

Xi Jinping. Juesheng quanmian jiancheng xiaokang shehui, duoqu xinshidai zhongguo tese shehuizhuyi weida shengli (2017.10.18). Beijing: Renmin chubanshe, 2017.

Xi Jinping. Secure a Decisive Victory in Building a Moderately Prosperous Society in All Respects and Strive for the Great Success of Socialism with Chinese Characteristics for a New Era: Report to the 19th National Congress of the Communist Party of China, October 18, 2017. Beijing: Foreign Languages Press, 2017.

Endnotes

[1] My engagement with the speech was part of my ongoing study of Chinese language, which has included important works by Mao Zedong and Deng Xiaoping in the original texts. One may find the text of Xi Jinping’s speech on http://www.xinhuanet.com/2018-05/04/c_1122783997.htm, where a video is also provided.

[2] The Chinese for ‘utopian’ is kongxiang, bearing the senses of fantasy, daydream and empty wish.

[3] The terminology of ‘work [gongzuo]’, ‘worker [gongren]’ and ‘working class’ or ‘proletariat [wuchan jieji]’ appears 29 times in this speech.

[4] Given the importance of the quotations and their interpretation, the sources are given in the footnotes: first the English translation, then the original language citation, and then the Chinese translation. Where necessary, I indicate where Xi quotes from the Chinese Selected Works of Marx and Engels and where he uses the Complete Works or the more recent (2009) 10-volume Collected Works. The Selected Works are a fascinating collection, produced only in a Chinese context. The selections of relevant material and the narrative thereby produced witness to a significant focus on the realities of socialism in power.

[5] Karl Marx and Friedrich Engels, ‘The Manifesto of the Communist Party’, in Marx and Engels Collected Works (Moscow: Progress Publishers, vol. 6, 1848 [1976]), 506; Karl Marx and Friedrich Engels, ‘Manifest der Kommunistischen Partei’, in Marx Engels Werke (Berlin: Dietz Verlag, vol. 4, 1848 [1974]), 482; Karl Marx and Friedrich Engels, ‘Gongchandang xuanyan’, in Makesi Engesi quanji (Beijing: Renmin chubanshe, vol. 4, 1848 [1972]), 491.

[6] Marx and Engels, ‘The Manifesto of the Communist Party’, 519; Marx and Engels, ‘Manifest der Kommunistischen Partei’, 493; Marx and Engels, ‘Gongchandang xuanyan’, 504.

[7] He Xiu, Chunqiu gongyangzhuan zhuxu, 28 vols. (Beijing: Zhonghua shuju, 1980), 2200.

[8] For He Xiu and this tradition, the ‘rumoured’ place is one of decay, disorder and chaos, where skulduggery, assassination and intrigue abound.

[9] Karl Marx and Friedrich Engels, ‘Shensheng jiazu, huo dui pipan de pipan suo zuo de pipan, bo bulunuo·baowei’er ji qi huoban (jiexuan)’, in Makesi Engesi wenji (Beijing: Renmin chubanshe, vol. 1, 1845 [2009]), 287. Xi opts for the more recent translation in the Marx Engels Collected Works. This text differs slightly from the earlier version in the Complete Works. See Karl Marx and Friedrich Engels, Shensheng jiazu, huo dui pipan de pipan suo zuo de pipan, bo bulunuo·baowei’er ji qi huoban, in Makesi Engesi quanji (Beijing: Renmin chubanshe, vol. 2, 1845 [1972]), 104. The quotation is actually the first part of an effort render a somewhat difficult sentence in the original German, which may be translated as: ‘Together with the thoroughness of the historical action [geschichtlichen Aktion], the size of the mass whose action it is [der Masse … deren Aktion sie ist] will therefore increase’. Karl Marx and Friedrich Engels, The Holy Family, or Critique of Critical Criticism, in Marx and Engels Collected Works (Moscow: Progress Publishers, vol. 4, 1845 [1975]), 82; Karl Marx and Friedrich Engels, Die heilige Familie oder Kritik der kritischen Kritik, in Marx Engels Werke (Berlin: Dietz, vol. 2, 1845 [1974]), 86.

[10] Karl Marx and Friedrich Engels, The German Ideology: Critique of Modern German Philosophy According to Its Representatives Feuerbach, B. Bauer and Stirner, and of German Socialism According to Its Various Prophets, in Marx and Engels Collected Works (Moscow: Progress Publishers, vol. 5, 1845-1846 [1976]), 43; Karl Marx and Friedrich Engels, Die deutsche Ideologie. Kritik der neuesten deutschen Philosophie in ihren Repräsentanten Feuerbach, B. Bauer und Stirner und des deutschen Sozialismus in seinen verschiedenen Propheten, in Marx Engels Werke (Berlin: Dietz, vol. 3, 1845-1846 [1973]), 30; Karl Marx and Friedrich Engels, Deyizhi yishi xingtai. Dui Feierbaha, Bu·baowei’er he Shidina suo daibiao de xiandai deguo zhexue yiji ge shi ge yang xianzhi suo daibiao de deguo shehuizhuyi de pipan, in Makesi Engesi quanji (Beijing: Renmin chubanshe, vol. 3, 1845-1846 [1972]), 33. English translation modified. The Chinese translation for ‘Menge’, ‘amount’ or ‘quantity’, is ‘zonghe’, with the senses of ‘sum’ and ‘sum total’. Further, the German ‘zugänglichen’, ‘accessible’ or ‘attainable’, is translated as ‘dadao’, meaning ‘reach’ or ‘achieve’.

[11] Marx and Engels, The German Ideology, 32-35; Marx and Engels, Die deutsche Ideologie, 21-25; Marx and Engels, Deyizhi yishi xingtai, 24-28.

[12] Marx and Engels, ‘The Manifesto of the Communist Party’, 495; Marx and Engels, ‘Manifest der Kommunistischen Partei’, 472; Marx and Engels, ‘Gongchandang xuanyan’, 477.

[13] Friedrich Engels, ‘Introduction to Karl Marx’s The Civil War in France’, in Marx and Engels Collected Works (Moscow: Progress Publishers, vol. 27, 1891 [1990]), 189-90; Friedrich Engels, ‘Einleitung zur dritten deutschen Auflage (1891) von Karl Marx, “Der Burgerkrieg in Frankreich”’, in Marx Engels Gesamtausgabe (Berlin: Akademie Verlag, vol. I.32, 1891 [2010]), 14-15; Friedrich Engels, ‘Falanxi neizhan de 1891 danxingben daoyan’, in Makesi Engesi xuanji (Beijing: Renmin chubanshe, vol. 3, 1891 [2003]), 12-13. Xi quotes from the translation in the Chinese Selected Works. The translation in the Complete Works has a slight difference: it translates Macht as quanli (power) rather than zhengquan (political power). Xi uses the latter. See Friedrich Engels, ‘Makesi “Falanxi neizhan” yishi daolan’, in Makesi Engesi quanji (Beijing: Renmin chubanshe, vol. 22, 1891 [1972]), 228.

[14] Karl Marx, ‘The Civil War in France’, in Marx and Engels Collected Works (Moscow: Progress Publishers, vol. 22, 1871 [1986]), 328; Karl Marx, ‘Falanxi neizhan’, in Makesi Engesi quanji (Beijing: Renmin chubanshe, vol. 17, 1871 [1972]), 355.

[15] This material is the focus of a monograph, called Friedrich Engels and the Basis of Socialist Governance, to be published in 2020. For those who are interested, the key texts from the 1890s should be consulted: Friedrich Engels, ‘Engels to Conrad Schmidt in Berlin, London, 27 October 1890’, in Marx and Engels Collected Works (Moscow: Progress Publishers, vol. 49, 1890 [2001]); Friedrich Engels, ‘Engels an Conrad Schmidt in Berlin, London, 27.Oktober 1890’, in Marx Engels Werke (Berlin: Dietz, vol. 37, 1890 [1974]); Engels, ‘Introduction to Karl Marx’s The Civil War in France’; Engels, ‘Einleitung zur dritten deutschen Auflage (1891) von Karl Marx, “Der Burgerkrieg in Frankreich”‘; Engels, ‘A Critique of the Draft Social-Democratic Programme of 1891’; Engels, ‘Zur Kritik des sozialdemokratischen Programmentwurfs 1891’; Friedrich Engels, ‘Introduction to Karl Marx’s The Class Struggles in France’, in Marx and Engels Collected Works (Moscow: Progress Publishers, vol. 27, 1895 [1990]); Friedrich Engels, ‘Einleitung (1895) zu Karl Marx’s “Klassenkämpfe in Frankreich 1848 bis 1850″‘, in Marx Engels Gesamtausgabe (Berlin: Akademie Verlag, vol. I.32, 1895 [2010]).

[16] Engels, ‘Introduction to Karl Marx’s The Civil War in France’, 189-90; Engels, ‘Einleitung zur dritten deutschen Auflage (1891) von Karl Marx, “Der Burgerkrieg in Frankreich”‘, 14-15; Engels, ‘Makesi “Falanxi neizhan” yishi daolan’, 227-28.

[17] Friedrich Engels, ‘Engels to Philipp Van Patten in New York (Draft). London, 18 April 1883’, in Marx and Engels Collected Works (Moscow: Progress Publishers, vol. 47, 1883 [1995]), 10; Friedrich Engels, ‘Engels an Philip Van Patten in New York (Entwurf). London, 18. April 1883’, in Marx Engels Werke (Berlin: Dietz, vol. 36, 1883 [1979]), 11.

[18] In this light, it is a quasi-anarchist misreading to assume that state structures will fade away immediately after a communist revolution.

[19] Friedrich Engels, The Origin of the Family, Private Property and the State. In the Light of the Researches by Lewis H. Morgan, in Marx and Engels Collected Works (Moscow: Progress Publishers, vol. 26, 1884 [1990]), 270; Friedrich Engels, Der Ursprung der Familie, des Privateigentums und des Staats, in Marx Engels Werke (Berlin: Dietz, vol. 21, 1884 [1962]), 166.

[20] Engels, ‘Einleitung zur dritten deutschen Auflage (1891) von Karl Marx, “Der Burgerkrieg in Frankreich”‘, 15.

[21] For example, English translations have either ‘new and truly democratic one’ or ‘new and really democratic state’. The Chinese translations offer, in the Selected Works, ‘xin de zhenzheng minzhu de guojia zhengquan [political power]’, and, in the Complete Works, ‘xin de zhenzheng minzhu de guojia quanli [power]’.

[22] Karl Marx, ‘Marx to Vera Zasulich, Geneva, 8 March 1881’, in Marx and Engels Collected Works (Moscow: Progress Publishers, vol. 46, 1881 [1992]), 71; Karl Marx, ‘Lettre à Vera Ivanovna Zassoulitch résidant à Genève, Londres, le 8 mars 1881’, in Marx Engels Gesamtausgabe (Berlin: Dietz, vol. I.25, 1881 [1985]), 241.

[23] Karl Marx, ‘Drafts of the Letter to Vera Zasulich’, in Marx and Engels Collected Works (Moscow: Progress Publishers, vol. 24, 1881 [1989]); Marx, ‘Premier projet de la lettre à Vera Ivanovna Zassoulitch’, in Marx Engels Gesamtausgabe (Berlin: Dietz, vol. I.25, 1881 [1985]); Marx, ‘Deuxième projet de la lettre à Vera Ivanovna Zassoulitch’, in Marx Engels Gesamtausgabe (Berlin: Dietz, vol. I.25, 1881 [1985]); Marx, ‘Troisième projet de la lettre à Vera Ivanovna Zassoulitch’, in in Marx Engels Gesamtausgabe (Berlin: Dietz, vol. I.25, 1881 [1985]); Marx, ‘Quatrième projet de la lettre à Vera Ivanovna Zassoulitch’, in in Marx Engels Gesamtausgabe (Berlin: Dietz, vol. I.25, 1881 [1985]).

[24] Karl Marx, ‘Gei wei·yi·chasuliqi de fuxin caogao: chugao’, in Makesi Engesi quanji (Beijing: Renmin chubanshi, vol. 19, 1881 [1972]); Karl Marx, ‘Gei wei·yi·chasuliqi de fuxin caogao: ergao’, in Makesi Engesi quanji (Beijing: Renmin chubanshi, vol. 19, 1881 [1972]); Marx, ‘Gei wei·yi·chasuliqi de fuxin caogao: sangao’, in Makesi Engesi quanji (Beijing: Renmin chubanshi, vol. 19, 1881 [1972]); Marx, ‘Wei·yi·chasuliqi de xin, 1881 nian 3 yue 8 ri yu lundun xibei lu, meitilan gongyuan lu 41 hao’, in Makesi Engesi quanji (Beijing: Renmin chubanshi, vol. 19, 1881 [1972]).

[25] Even today, Chinese history follows its own path. It may be influenced by events elsewhere, but – as a signal example – the four decades of reform and opening up have their own historical logic.

[26] The core socialist values, which have now been assiduously promoted for the last few years, are: prosperous and strong (fuqiang); democratic (minzhu); civilised (wenming); harmonious (hexie); free (ziyou); equal (pingdeng); just (gongzheng); rule of law (fazhi); love of country (aiguo); dedicated (jingye); honest and trustworthy (chengxin); friendly (youshan). Their tendency to be adjectival should be noted.

 

[27] Karl Marx, ‘Outlines of the Critique of Political Economy (Rough Draft of 1857-1858) [Second Instalment]’, in Marx and Engels Collected Works (Moscow: Progress Publishers, vol. 29, 1857-1858 [1987]), 94; Karl Marx, ‘Ökonomische Manuskripte 1857/1858’, in Marx Engels Gesamtausgabe (Berlin: Akademie Verlag, vol. II.1, 1857-1858 [2006]), 584; Karl Marx, ‘Zhengzhijingjixue pipan (1857-1858 nian caogao) [shougao houban bufen]’, in Makesi Engesi quanji (Beijing: Renmin chubanshe, vol. 46b, 1857-1858 [1972]), 222. This is an intriguing quotation, for Marx is analysing the exacerbation of contradictions under the capitalist market economy, but as he does so, he provides glimpses of the potential of socialist society. This and other texts from the 1857-1858 manuscripts, which offer comparable glimpses, have been analysed in detail by Chinese scholars.

[28] Friedrich Engels, ‘Principles of Communism’, in Marx and Engels Collected Works (Moscow: Progress Publishers, vol. 6, 1847 [1976]), 354; Friedrich Engels, ‘Grundsätze des Kommunismus’, in Marx Engels Werke (Berlin: Dietz, vol. 4, 1847 [1972]); Friedrich Engels, ‘Gongchanzhuyi yuanli’, in Makesi Engesi xuanji (Beijing: Renmin chubanshe, vol. 1, 1847 [2003]), 243. Xi quotes from the Selected Works, which has a small difference from the Chinese Complete Works, albeit one without effect on the meaning Friedrich Engels, ‘Gongchanzhuyi yuanli’, in Makesi Engesi quanji (Beijing: Renmin chubanshe, vol. 4, 1847 [1972]), 371.

[29] Friedrich Engels, ‘Engels’ Amendments to the Programme of the North of England Socialist Federation’, in Marx and Engels Collected Works (Moscow: Progress Publishers, vol. 26, 1887 [1990]), 620; Friedrich Engels, ‘Engesi dui yingguo beifang shehuizhuyi lianmeng gangling de xiuzheng’, in Makesi Engesi quanji (Beijing: Renmin chubanshi, vol. 21, 1887 [1972]), 570. Intriguingly, this text is not directly from Engels’s hand, but from the program of the North of England Socialist Federation. Engels was asked to comment on the program, which he did at some points while approving the rest. Xi quotes from one part that Engels approved.

[30] The new primary contradiction (an emphasis stemming from Mao’s deeply influential ‘On Contradiction’ essay from 1937) was identified at the nineteenth congress of the CPC in 2017: ‘What we now face is the contradiction between unbalanced and inadequate development and the people’s ever-growing needs for a better life’. See Jinping Xi, Secure a Decisive Victory in Building a Moderately Prosperous Society in All Respects and Strive for the Great Success of Socialism with Chinese Characteristics for a New Era: Report to the 19th National Congress of the Communist Party of China, October 18, 2017 (Beijing: Foreign Languages Press, 2017), 9-10; Jinping Xi, Juesheng quanmian jiancheng xiaokang shehui, duoqu xinshidai zhongguo tese shehuizhuyi weida shengli (2017.10.18) (Beijing: Renmin chubanshe, 2017), 11.

[31] Elsewhere, I have addressed the charge that the CPC abandoned the old ‘iron rice bowl’ and exploited workers. The simple answer is that lifting 700-800 million urban and rural workers out of poverty since the beginning of the reform and opening up provides a far better basis for the social construction mapped out here by Xi Jinping.

[32] Karl Marx, ‘Economic and Philosophic Manuscripts of 1844’, in Marx and Engels Collected Works (Moscow: Progress Publishers, vol. 3, 1844 [1975]), 276; Karl Marx, ‘Ökonomisch-philosophische Manuskripte (Erste Wiedergabe)’, in Marx Engels Gesamtausgabe (Berlin: Akademie Verlag, vol. I.2, 1844 [2009]), 240; Karl Marx, ‘Ökonomisch-philosophische Manuskripte (Zweite Wiedergabe)’, in Marx Engels Gesamtausgabe (Berlin: Akademie Verlag, vol. I.2, 1844 [2009]), 368; Karl Marx, ‘1844 nian jingji zhexue shougao’, in Makesi Engesi quanji (Beijing: Renmin chubanshe, vol. 42, 1844 [1972]), 95. Translation modified, since Marx uses the generic Mensch.

[33] The fuller text, in the old MECW translation has: ‘Man lives on nature – means that nature is one’s body, with which one must remain in continuous interchange if one is not to die. That a human being’s physical and spiritual life is linked to nature means simply that nature is linked to itself, for a human being is a part of nature’.

[34] Friedrich Engels, ‘On Authority’, in Marx and Engels Collected Works (Moscow: Progress Publishers, vol. 23, 1873 [1988]), 423; Friedrich Engels, ‘Dell’ Autorità’, in Marx Engels Gesamtausgabe (Berlin: Dietz, vol. I.24, 1873 [1984]), 85; Friedrich Engels, ‘Lun quanwei’, in Makesi Engesi quanji (Beijing: Renmin chubanshe, vol. 18, 1873 [1972]), 342.

[35] Marx and Engels, The German Ideology, 50-51; Marx and Engels, Die deutsche Ideologie, 45; Karl Marx and Friedrich Engels, ‘Deyizhi yishi xingtai (jiexuan)’, in Makesi Engesi xuanji (Beijing: Renmin chubanshe, vol. 1, 1845-1846 [2003]), 88. Xi quotes from the translation of the Selected Works on this occasion, which has a number of minor variations in comparison with the translation in the Complete Works. See Marx and Engels, ‘Deyizhi yishi xingtai. Dui Feierbaha, Bu·baowei’er he Shidina suo daibiao de xiandai deguo zhexue yiji ge shi ge yang xianzhi suo daibiao de deguo shehuizhuyi de pipan’, 51.

[36] The online version, with James Legge’s translation, may be found at https://ctext.org/liji/zhong-yong.

[37] As is the tendency in Chinese, the translation clarifies ‘they’ with ‘Communist Party people [gongchandang ren]’.

[38] Marx and Engels, ‘The Manifesto of the Communist Party’, 497; Marx and Engels, ‘Manifest der Kommunistischen Partei’, 474; Marx and Engels, ‘Gongchandang xuanyan’, 479.

[39] Marx and Engels, ‘The Manifesto of the Communist Party’, 497; Marx and Engels, ‘Manifest der Kommunistischen Partei’, 474; Karl Marx and Friedrich Engels, ‘Gongchandang xuanyan’, in Makesi Engesi xuanji (Beijing: Renmin chubanshe, vol. 1, 1848 [2003]), 285. A minor variation in the Chinese translation indicates that Xi is once again quoting from the Selected Works.

[40] Marx and Engels, ‘The Manifesto of the Communist Party’, 495; Marx and Engels, ‘Manifest der Kommunistischen Partei’, 472; Marx and Engels, ‘Gongchandang xuanyan’, 477.

[41] Karl Marx, ‘Marx to Wilhelm Bracke in Brunswick, London, 5 May 1875’, in Marx and Engels Collected Works (Moscow: Progress Publishers, vol. 45, 1875 [1991]), 70; Karl Marx, ‘Marx an Wilhelm Bracke in Braunschweig, London, 5.Mai 1875’, in Marx Engels Werke (Berlin: Dietz, vol. 34, 1875 [1973]), 138; Karl Marx, ‘Zhi Weilian Bailake, Bulunruike, 1875 nian 5 yue 5 ri yu Lundun’, in Makesi Engesi quanji (Beijing: Renmin chubanshe, vol. 34, 1875 [1972]), 130.

[42] Edelman, ‘2018 Edelman Trust Barometer: Global Report’, (Los Angeles: Edelman, 2018).

[43] Ipsos, ‘What Worries the World – July 2017’, (Paris: Ipsos Public Affairs, 2017), 4; Ipsos, ‘What Worries the World – September 2018’, (Paris: Ipsos Public Affairs, 2018), 4.

[44] Friedrich Engels, ‘Engels to Werner Sombart in Breslau, London,11 March 1895’, in Marx and Engels Collected Works (Moscow: Progress Publishers, vol. 50, 1895 [2004]), 461; Friedrich Engels, ‘Engels an Werner Sombart in Breslau, London, 11.März 1895’, in Marx Engels Werke (Berlin: Dietz, vol. 39, 1895 [1973]), 428; Friedrich Engels, ‘Zhi Weinaer·Sangbate, Bulesilao, 1895 nian 3 yue, 11 ri yu Lundun’, in Makesi Engesi quanji (Beijing: Renmin chubanshi, vol. 39a, 1895 [1972]), 406. I have been very careful with this important observation by Engels, modifying the standard English translation to bring out more clearly the sense of the German. Thus, ‘Auffassungsweise’ means way of conceptualising, or mode of conceptualisation – as an active process. Here, the Chinese translation renders the term as ‘shijieguan’, which means more here than ‘world outlook’: it designates a way of observing the world. Further, ‘Anhaltspunkte’ is specifically reference points, which the Chinese renders as ‘chufadian’, the ‘point of departure’ for the next step of investigation.

[45] Although this does not prevent the odd foreign Marxist, who likes to suggest that China has at some point abandoned Marxism. This hypothesis may take various forms: the leadership is all talk and no action, or they are hypocrites who pay lip service to Marxism but act entirely differently, or – in stronger versions – they have betrayed Mao and Marxism and been engaged in a vast conspiracy, with coded language, for the last forty years. Xi Jinping’s resolute focus on Marxism as theory and practice has made such superficial hypotheses untenable (not that they ever were really tenable). But here it is also pertinent to note Engels’s related observation on some Marxists from North America. In a letter to Friedrich Adolf Sorge, he writes: ‘they themselves do not for the most part understand the theory and treat it in doctrinaire and dogmatic fashion as something which, having once been learnt by rote, is sufficient as it stands for any and every need. To them it is a credo, not a guide to action’ Friedrich Engels, ‘Engels to Friedrich Adolph Sorge in Hoboken, 29 November 1886’, in Marx and Engels Collected Works (Moscow: Progress Publishers, vol. 47, 1886 [1995]), 531-32; Friedrich Engels, ‘Engels an Friedrich Adolph Sorge in Hoboken, London, 29.November 1886’, in Marx Engels Werke (Berlin: Dietz, vol. 36, 1886 [1973]), 578.

[46] Friedrich Engels, ‘Dialectics of Nature’, in Marx and Engels Collected Works (Moscow: Progress Publishers, vol. 25, 1873-1882 [1987]), 338; Friedrich Engels, ‘Dialektik der Natur’, in Marx Engels Werke (Berlin: Dietz, vol. 20, 1873-82 [1973]), 330; Friedrich Engels, ‘Ziran bianzhengfa (jiexuan)’, in Makesi Engesi xuanji (Beijing: Renmin chubanshe, vol. 4, 1873-1882 [2003]), 284. Once again, Xi Jinping quotes from the translation in the Selected Works, which differs in minor details from the translation found in the Complete Works. Compare Friedrich Engels, ‘Ziran bianzhengfa’, in Makesi Engesi quanji (Beijing: Renmin chubanshe, vol. 20, 1873-1882 [1972]), 382.

[47] I have tried to render Xi’s complex wordplay here: ‘original edition [muban]’, ‘template [moban]’, ‘second edition [zaiban]’ and ‘reprint’ [fanban]’.

[48] The Chinese translation of ‘Die Perspepktive’ is ‘yuanjing’, a long-range view, prospect or even vision.

[49] Friedrich Engels, ‘Karl Marx, A Contribution to the Critique of Political Economy’, in Marx and Engels Collected Works (Moscow: Progress Publishers, vol. 16, 1859 [1980]), 469-70; Friedrich Engels, ‘Karl Marx, “Zur Kritik der Politischen Ökonomie”‘, in Marx Engels Werke (Berlin: Dietz, vol. 13, 1859 [1974]), 470; Friedrich Engels, ‘Ka’er·makesi “Zhengzhijingjixue pipan. Diyi fence” ‘, in Makesi Engesi xuanji (Beijing: Renmin chubanshe, vol. 2, 1859 [2003]), 38. Xi quotes the version in the Chinese Selected Works, which differs slightly from that in the Collected Works Friedrich Engels, ‘Ka’er·makesi “Zhengzhijingjixue pipan” ‘, in Makesi Engesi quanji (Beijing: Renmin chubanshe, vol. 13, 1859 [1972]), 526-27.

The socialist road of the reform and opening up (Deng Xiaoping)

In the 1980s, Deng Xiaoping made many statements concerning the reform and opening up, which had begun only a few years earlier. As he points out again and again, its core purpose was and is to liberate the forces of production – inescapable for socialism – in order to improve the socio-economic lives of everyone. And he is also clear that the reform and opening up is following the socialist road. For example, this talk from 21 August, 1985, points out:

People abroad are making two kinds of comments about China’s economic reform. Some commentators maintain that the reform will cause China to abandon socialism, while others hold that it will not. These last are far-sighted. All our reforms have the same aim: to clear away the obstacles to the development of the productive forces. In the past we carried out the new-democratic revolution. After the founding of the People’s Republic, we completed agrarian reform and conducted the socialist transformation of agriculture, handicrafts and capitalist industry and commerce, thus establishing the socialist economic base. All this was a great revolution, which lasted for more than three decades. But in the many years following the establishment of the socialist economic base, we failed to work out policies that would create favourable conditions for the development of the productive forces. As a result, they developed slowly, the material and cultural life of the people did not improve rapidly enough, and the country could not free itself from poverty and backwardness. Under these circumstances, in December 1978, at the Third Plenary Session of the Eleventh Central Committee of the Party, we were compelled to decide on a course of reform.

Our general principles are that we should keep to the socialist road, uphold the people’s democratic dictatorship, uphold leadership by the Communist Party and uphold Marxism-Leninism and Mao Zedong Thought. These principles have been written into China’s Constitution. The problem is how to implement them. Should we follow a policy that will not help us shake off poverty and backwardness, or should we, on the basis of those four principles, choose a better policy that will enable us to rapidly develop the productive forces? Our decision at the Third Plenary Session of the Eleventh Central Committee to carry out reform meant that we were choosing a better policy. Just like our past revolutions, the reform is designed to clear away the obstacles to the development of the productive forces and to lift China out of poverty and backwardness. In this sense, the reform may also be called a revolutionary change.

… Of course, the policies of invigorating the economy and opening to the outside may have certain negative effects, and we need to be aware of that. But we can cope with that; it is nothing serious. This is because from the political point of view, our socialist state apparatus can safeguard the socialist system. And from the economic point of view, our socialist economy already has a solid basis in industry, agriculture, commerce and other sectors. That is how we look upon the possible negative effects of our policy.

Our reform is an experiment not only for China but also for the rest of the world. We believe the experiment will succeed. If it does, our experience may be useful to the cause of world socialism and to other developing countries. Of course, we do not mean that other countries should copy our example. Our principle is that we should integrate Marxism with Chinese practice and blaze a path of our own. That is what we call building socialism with Chinese characteristics.

The Socialist Market Economy: Philosophical Foundations (updated)

This is the text of a paper, to be delivered at a conference in 2019. It is the fullest expression of my thoughts on a socialist market economy, forming the framework for an eventual monograph.

Let me begin with a personal narrative for a moment: my background is steeped in the Western European tradition. Apart from personal circumstances, as a child of Dutch immigrants, this includes the study of the European Classics, theology, and Marxist philosophy, all premised on the core principle that one must study such traditions in their original languages. Yet, as I develop a rather large project called ‘Socialism in Power’, I find increasingly that the frameworks that derive from the anomalous historical and cultural context of the western peninsula of the Eurasian landmass (also known as Western Europe) are unhelpful at least and misleading at worst.

On Dismantling False Universals

A few examples. Currently, I am working on a couple of books concerning the socialist state. I soon found that much of the ‘state theory’ that derives from a Western European context is unhelpful. These categories include:

  • The separation between state and society and the consequent category of ‘civil society’ (or more properly bürgerliche Gesellschaft, bourgeois society, of which the ultimate expression is the lynch mob (Losurdo 2011)).
  • The framework of bourgeois or liberal democracy that is so often assumed to be a universal ‘democracy’, with its strange notion of ‘democratisation’.
  • The consequent categories of party-state, authoritarianism and dictatorship.

Related but distinct are a number of other near useless frameworks:

  • Ontological transcendence and immanence, a distinction which shapes European cultural assumptions to the core.
  • The Western European tradition of human rights, with its focus on civil and political rights, which simply cannot make sense of alternative traditions of human rights (such as a Chinese Marxist one).
  • Identity politics as a logical absurdity of liberalism, in which one can choose one’s gender, sexual preferences, ethnicity and now even age.
  • The notion of sovereignty, which arose in the struggle between European states (Westphalia) and applied – mostly – to each other, but had no bearing on colonised countries.

The list could go on, which is based on extensive prior research, but let me focus on the shortcomings of the tradition of neo-classical economics:

  • The separation of ‘state’ and ‘the market’, assuming that the latter is a distinct entity with a life of its own.
  • The related category of government ‘interference’ with ‘the market’ from time to time.
  • Whenever one finds ‘market relations’, one has a form of capitalism (even 6,000 years ago).
  • The tendency among some Western Marxist economists to retreat from the initial wide historical framework of Marx and Engels and restrict themselves with analysing the workings of the capitalist market economy.[1]

Why are they less than helpful? As Igor Diakonoff (1999), the Soviet-era specialist on ancient Southwest Asia observed, European history is in many respects an anomaly. However, the history of European colonialism has made this anomaly a norm, which we are still struggling to discard. But this does not lead us to sheer relativism (with its attendant opposite, the universal). Instead, it is necessary to distinguish between false and rooted universals. A false universal neglects or forgets its specific origin and context, asserting that it is absolute and singular. By contrast, a rooted universal, or contextualised commonality, always remembers its specific context, for only in this way can the history, promises and limitations of the universal be kept in mind. This means that universals can and do arise in different contexts and cultures, and that they may apply with different emphases to all peoples.[2]

In light of the above, the following analysis of the socialist market economy constitutes another effort at constructing an approach from the ground up, one that is not beholden to frameworks and categories derived from the western peninsula of the Eurasian landmass. It seeks primarily the underlying patterns or philosophical foundations, albeit with relevant historical and empirical data. This task entails a number of steps, beginning with Marx’s third volume of Capital, moving through some historical examples of market economies, to principles of the Chinese socialist market economy.[3]

History: From Marx in Capital III to Economics Imperialism

As Chinese political economists do, we begin with Marx (not least because neo-classical economics is woefully inadequate). Over a few important pages in the third volume of Capital, Marx examines the market economy of ancient Rome (Marx 1894 [1998], 588-605; 1894 [2004], 583-99). His concern is to trace the effects of ‘usurer’s capital’. Found in the ‘most diverse economic formations of society’, in Rome a portion of this capital leads to commodities, money, trade, borrowing, surplus and profit. In other words, we have some of the core components of a ‘market economy’. But is it a capitalist market economy? Not at all. It is a slave market economy, for its primary purpose was to find, transport and buy the labour of others as slaves. The whole market economy of ancient Rome (and indeed ancient Greece) was geared for and subordinated to this purpose. Marx subsequently outlines the way some of these components worked: usury, interest, surplus, money, labour and so on, were arranged quite differently and functioned in ways that are far from a capitalist market economy.[4] Or, if they do at times seem similar, they function in ‘altered conditions’, without a capitalist market economy (Marx 1894 [1998], 592, 595; 1894 [2004], 587, 590). Marx moves on to outline how some elements of feudal market economies worked, and then how the different constellation of a capitalist mode of production overturned and reconfigured many of these earlier features (especially usury), but the point should now be clear.

In light of subsequent research (Boer and Petterson 2017), we may add that in light of the slave market economy, the Romans invented in the late second century BCE the legal-economic category of ‘absolute private property [dominium]’. The primary reference was the ownership of thing (res), except that the object in question was a slave. The category would later be lost and recovered in a fascinating history, becoming eventually a core component of the very different arrangements of a capitalist market economy and indeed of the Western European tradition of human rights.

One could make similar points regarding other market economies throughout history, such as the tax market economy of the ancient Persians in the first millennium BCE (Boer 2015), or the feudal market economy with its prime focus on the estate’s own production, to which peasants were bound (Kula 1976 [1962]). By contrast, a capitalist market economy is geared for the production of surplus value, to which all is subordinated.

Now for the philosophical point that arises from these historical analyses: a market economy – without an epithet – is not to be equated with a capitalist market economy. To divest ourselves of this assumption, fostered as it is in so many ways, is a most difficult task. But if we do not so divest ourselves, we end up with ‘economics imperialism’, in which the assumptions of a capitalist market economy (and its attendant neo-classical economic theory) are de-historicised, de-socialised, universalised and superimposed on any historical market economy, thereby skewing analysis (Milonakis and Fine 2009; Fine and Milonakis 2009).

Instead, market economies have appeared in different forms throughout much of human history, each with a distinct focus or purpose. They may have some common components, but the way they are arranged and how they function depends upon the purpose in question. It may be tax, slaves, estate production or profit (surplus value): all else is subordinated to the purpose. This historical reality raises the possibility of a market economy under socialism, one that is geared to yet another purpose distinct from those mentioned thus far.

Principles of a Socialist Market Economy

In analysing a socialist market economy (with Chinese characteristics), let elaborate on a number of proposition.[5]

  1. The enmeshment of state and economy, to the extent that one cannot distinguish between these two realms.

It has become increasingly clear that state and economy cannot be separated from one another in China. This is not a case of state ‘interference’ in the economy (as the EU interprets ‘socialist market economy’), but that the idea of distinct and autonomous realms does not work. Instead, they are enmeshed with one another in many complex ways.[6]

A significant philosophical reason for this reality reason may be found in the Chinese tradition of dialectics, which may be summarised with the common saying, ‘things that oppose each other also complement one another [xiangfan xiangcheng]’. This rich tradition was appropriated and transformed by Mao Zedong (1937 [1965], 1937 [1952]), with the eventual elaboration not only of ‘contradiction analysis’ that is even more relevant today (Xi 2017b, 2017a), but also of the crucial role of non-antagonistic contradictions (Mao 1957 [1992], 1957 [1999]). This approach applies at many levels, including the reality of classes under socialism: that classes such as workers and farmers, or urban and rural workers, would continue under socialism is obvious, from the Soviet Union to the DPRK (which includes intellectuals in its three classes). However, the key is that the relations between such classes should – ideally – develop in a non-antagonistic and constructive fashion.

This situation has led to immense frustration among a small number of other countries, which thought that China’s accession to the World Trade Organisation in 2001 would push China towards a capitalist market economy (which they interpreted as a ‘market economy’). But China will not be moved from its own path, insisting that it is a market economy, albeit a socialist market economy in which state and economy are enmeshed with one another.

  1. The increasing disappearance or dying away of the distinction between ‘private’ and ‘public’ enterprises.

The old opposition between public (or state) and private ownership is dying (or withering) away – the allusion to Engels should be clear. This opposition has been for some time a leitmotiv of those who try to determine whether an economy is more or less ‘socialistic’, so much so that a ‘socialist’ turn involves ‘nationalising’ key industries. This model is simply unusable in China, if not misleading. Thus, the percentage of public or private ownership is not a marker of whether a national economy is more or less socialistic, nor indeed is the percentage of economic output by state-owned or private enterprises.[7]

In China, the fabled state-owned enterprises – the backbone of the economy – are undergoing a process of eradicating old inefficiencies by learning from ‘private’ enterprises and even entering into partnerships with those enterprises. At the same time, every enterprise, whether ‘private’ or ‘public’ – or rather the many enterprises which are part ‘private’ and ‘public’, village or local government owned enterprises, ‘new economic organisations’, start-ups and so on – with more than three CPC members must engage in party building. This means that they develop a party organisation with an elected party secretary. The larger the company, the larger the party membership. For example, the world’s leading online retailer, Alibaba, has more than 7,000 CPC members, with significant party building as part of its core mandate. At one level, these party organisations do not interfere with management decisions, but at another level ensure that the company adheres to CPC principles. Further, every foreign enterprise or multinational working in China must also have CPC workers and a unit within. If I add that the CEOs of China’s biggest companies are often members of the CPC (for example, Ma Yun or Jack Ma of Alibaba), then we begin to see that the distinction of ‘public’ and ‘private’ no longer works. This situation is leading to a number of creative efforts to rethink a socialist market economy, to the point of appropriating and transforming the European notion of the ‘common’ in terms of a reality that is fostered by and part of governance itself.

A further example concerns the rise of what is at times called a ‘middle class’ in China. This is an unfortunate term, since it is redolent with the anomalous history of the bourgeoisie in Europe: there it grew initially in the towns, developing a different agenda (what became known as the pernicious tradition liberalism) from the existing European states and eventually seizing power through a series of revolutions and transformations (in Germany through Bismarck). Instead, the Chinese ‘middle class’ is a socialist middle class (with ‘middle class’ functioning as a place holder until a better term is found). By this I mean the 700-800 million urban and rural workers who have been lifted out of poverty over the last forty years of the reform and opening up. Often described as the greatest human rights achievement in the twentieth century, it is a direct result of government initiative, which continues today. In other words, this group simply does not have a class consciousness comparable to the European middle class, for it is inseparable from the core government policy of poverty alleviation.[8] Or, to use a Chinese way of framing this development, it constitutes the second great leap – to economic wellbeing (fuqilai de weida feiyue), which is the core Chinese Marxist human right.[9]

  1. Instead of being an alternative to a planned economy, a socialist market economy may be seen as another form of a planned economy, in which parameters are set.

Another opposition that is losing traction in China is between a planned economy and a socialist market economy. In its old form, a planned economy was seen as a distinct and socialist alternative to a capitalist market economy. With careful and rational planning, the chaos, vagaries and crises of a capitalist market economy would be overcome with a planned economy. If one follows this suggestion, then a socialist market economy is a betrayal of the planned economy. This is not the case.

Two approaches may be distinguished in determining their relationship. The first proposes that both planned and socialist market economies are two possible forms of economies under socialism. Depending on conditions, a more planned economy may be needed at some points, while at others a socialist market economy is required. The second – and more preferable – approach is to see the two working together. Thus, while China moved only a few years ago to identifying market mechanisms as the foundational logistic reality of economic activity, it continues to set five-year plans. In their current form, these plans set parameters for the socialist market economy – most notably in in the last couple of years to focusing foreign investment in countries that are part of the Belt and Road Initiative.[10]

  1. A central role in the continued unfolding of the anti-colonial project.

The socialist market economy must also be seen as part of the much larger anti-colonial project, which may be dated in China from the efforts in the nineteenth century to repel colonial powers. Many components may be adduced, from a distinct approach to sovereignty (which entails a rejection of foreign interference at any level), through China-Africa cooperation (for almost two decades), the Shanghai Cooperation Organisation, Asia Infrastructure Investment Bank, to the Belt and Road Initiative.

Let me take the BRI as a test-case. Instead of seeing it as a form of ‘creditor colonialism’ (concerning this type of propaganda the old Danish saying is pertinent: a thief always thinks everyone else is a thief), the BRI should be seen as the latest unfolding of the anti-colonial project (Losurdo 2013). How so? First, it offers a distinctly different model of international engagement, in which the construction of infrastructure – from rail and roads to telecommunications – is central. To be added here is the simple fact that Chinese technology increasingly outstrips that found elsewhere. This approach contrasts sharply with the old model of aid, which was essentially bribery to a ruling class in exchange for compliance and altering internal political and social structures to suit neo-colonial agendas. The BRI approach – even as it deals with inevitable problems such as avoiding local corruption – has become distinctly popular in Latin America, Africa, Central Asia, Eastern and Southern Europe and the Pacific, so much so that the old colonial cabal (including Australia)[11] has changed its tune and is now offering ‘Western aid with Chinese characteristics’ – which is welcomed by China.

Why focus on infrastructure? I cannot go here into the Chinese tradition or the Marxist tradition in which liberating the forces of production is the core component of socialism in power. Instead, let us ask: what is the purpose? Is it to make these countries subservient to a new master? On the contrary, it is predicated on the position that one needs to develop basic and advanced infrastructure to improve the socio-economic condition of those involved. Or, as the Chinese Marxist approach to human rights would have it, the basic human right is the right to economic wellbeing (Sun 2014; Boer In press-b).

  1. Embodying the core Chinese Marxist human right to economic wellbeing (which may – with qualifications – also be found in ‘all under heaven is as common [tianxia wei gong]’).

The previous point brings us to the basic purpose of a socialist market economy, concerning which two concepts are pertinent. The first is a four-character phrase (chengyu): all under heaven is as common (tianxia wei gong). It comes from none other than the Confucian Book of Rites (1885, 364-66).[12] Subsequently, it became a favourite phrase of Sun Zhongshan (Yat-sen) and the CPC.

However, tianxia wei gong may also contain a problem to be avoided, for it was developed in an early imperial context and potentially gives a ruling-class perspective. It may be appropriated, but only through the core Chinese Marxist human right: the right to socio-economic wellbeing. This distinct tradition of human rights (which differs from the Western European tradition) has developed in its own way and may be compared to a tree. At its roots is anti-colonial sovereignty, the trunk is the right to socio-economic wellbeing, and the leaves are civil, political, cultural and environmental rights.[13] Not only is the right to socio-economic wellbeing embodied in the United Nations’ International Covenant on Economic, Social, and Cultural Rights (1976),[14] but it also remains a key driver for minority nationalities policy, the Belt and Road Initiative, and the socialist market economy.

How does this focus work? Many are the aspects, but let me focus here on two. The first concerns company aims and reports. Of course, they need to be economically viable to ensure their continued functioning, but profit is not the primary purpose. Instead, the companies focus on social benefit, poverty alleviation, environmental improvement, education, guidance and improvement of public opinion, core socialist values,[15] party construction, and contribution to socialism with Chinese characteristics. These are now known as ‘social responsibility reports’ and are core to any enterprise’s activities.[16]

The second example is initially more mundane, for it concerns my pay in China and restrictions on moving money out of China. When I mentioned this situation to someone in Australia, he exclaimed, ‘but it is your money; you have a right to do with it what you want’. But when I mentioned it to a colleague in China, pointing out that I would prefer to spend the pay in China, she said: ‘of course, so you should’. In other words, even one’s pay is not simply a private matter, for it should be spent in a way that contributes to the right for socio-economic wellbeing for all, or ‘all under heaven is as common’. The larger point here is that the components of a market economy (which are also not constant) are arranged in quite distinct constellations depending on its prime purpose. Thus, money, commodities, labour, even stock markets,[17] and so on, relate to one another and function quite differently.

Summary and Conclusion: How Did the Socialist Market Economy Arise?

Let me summarise the argument in terms of a number of theses:

1. Market economies may be found throughout human history, taking the form – to name a few – of tax, slave, feudal, capitalist and socialist market economies.

2. Thus, it is a form of economics imperialism to equate ‘market economy’ (minus the epithet) with a ‘capitalist market economy’.

3. The purpose of the market economy in question is crucial, for this determines the arrangement of its components.

3. A socialist market economy entails:

a. The need to develop a Marxist economic analysis, since neo-classical economic theory is inadequate.

b. The enmeshment of state and economy, to the extent that one cannot distinguish these two realms.

c. The increasing disappearance or dying away of the distinction between ‘private’ and ‘public’ enterprises.

d. Instead of being an alternative to a planned economy, a socialist market economy may be seen as another form of a planned economy, in which parameters are set.

e. A central role in the continued unfolding of the anti-colonial project.

f. Embodying the core Chinese Marxist human right to economic wellbeing (which may – with qualifications – also be found in ‘all under heaven is as common [tianxia wei gong]’).

By now it should be obvious that a number of approaches to the Chinese economy are superficial and mistaken. These include categories such as ‘state capitalism’, ‘neo-liberalism with Chinese characteristics’, ‘authoritarian capitalism’, a version of the Soviet Union’s ‘New Economic Program’, a borrowing from Yugoslavia’s ‘market socialism’,[18] if not simple hypocrisy in which one can ignore the very sophisticated debates in China today (Kluver 1996; Harvey 2007; Amin 2006, 30-34; Huang 2008). Not only are such hypotheses empirically wanting, but they are also philosophically untenable (leading to betrayal narratives, conspiracy theories and versions of Orientalism).

Instead, let us consider a number of Chinese proposals as to how the socialist market economy arose. These are samples of the extensive debate in China, upon which I have drawn for this paper.

The first suggests that the market economy in China differs little from capitalist market economies, save in one important respect: the role of the government in the economy. It should be clear by now that this suggestion does not hold up in light of further analysis.

The second is to resort to Deng Xiaoping’s breakthrough proposal that a market economy is a neutral instrument and can be used for the construction of socialism. This proposal was based on the understanding that socialism is of no worth if everyone is equal in poverty, but that it must liberate the forces of production to improve everyone’s socio-economic wellbeing.

The third draws upon the old adage, ‘seek truth from facts’. Conditions change, new problems arise for which new solutions must be sought – hence the reform and opening up, and the socialist market economy.

The fourth is that the socialist market economy draws on the increasing symbiosis (especially with Xi Jinping) of Chinese traditional cultures and Marxism. I have addressed a number of features of this symbiosis earlier, including the approach to non-antagonistic contradictions and the Confucian four-character saying, ‘all under heaven is as common’.

The fifth is intriguing: the development of a socialist market economy is as much accidental as it was planned. Thus, it arose out of the period (first decade of the twenty-first century) when neo-liberal economic policies seemed to be gaining traction. Many were the debates in China at the time, as Marxist economists warned of a drift to a capitalist market economy (against which Deng Xiaoping warned many times). That decade is decisively over with Xi Jinping’s clear rearticulation of Marxist political economy as the basis for China’s development. But the response is intriguing: instead of reverting to an outmoded planned economy, the contours of a socialist market economy arose.

The final proposal is that market economies have historically taken very different shapes and forms, determined by a primary purpose. This has been the preferred approach of this paper, although each of the preceding proposals (barring the first) also has merit. In this light, a socialist market economy constitutes a distinctly new form of a market economy.

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Notes

[1] For the sake of reference, some of the earlier works where these matters have been analysed may be cited (Boer 2014, 2018, 2017, In press-b, In press-a, 2015; Boer and Petterson 2017).

[2] Thus, as Sun points out (2014, 132-35), the idea of ‘rooted universals’ moves past the facile distinction between relative and absolute (Foot 2000, 155-57).

[3] The present paper provides a basic outline of a monograph to be written on the socialist market economy. Some areas are based on earlier research (especially the historical material), while other areas have slowly developed over the last few years. Obviously, most topics require further in-depth research, predicated on taking Chinese scholarship on such matters seriously.

[4] Or, as Kula points out: ‘in the pre-capitalist economy, market phenomena are governed by completely different laws in many cases, and … these phenomena have an altogether different effect on the remaining sector of the economy’ (Kula 1976 [1962], 17).

[5] Although comparisons with the practices of the Soviet Union are helpful to some extent, they are also fraught with traps, not least because of the different historical and cultural context of China, as well as the fact that China has developed well beyond what happened in the Soviet Union.

[6] The same can be said for developments of the socialist state (see above).

[7] In his occasional posts on China, the Marxist economist, Michael Roberts, pursues this line. See https://thenextrecession.wordpress.com.

[8] This group forms the backbone of surveys which consistently register, in international surveys, 90 percent expressing confidence in the direction China is headed (Ipsos 2017, 2018), and 84-89 percent expressing trust in the government (Edelman 2018).

[9] The three great leaps are: standing up (zhanqilai); economic wellbeing (fuqilai); strength (qiangqilai). A recent articulation may be found in Xi Jinping’s speech commemorating the 200th anniversary since Marx’s birth (5 May, 2018).

[10] This point arises from a private conversation with Ken Surin, of Duke University.

[11] This old colonial club, made up of about a dozen countries, has been fostering a ‘China threat’ line for the last few years, all the way from Huawei as a ‘security threat’ to deliberate misinformation concerning the highly successful de-radicalisation programs in Xinjiang Autonomous Region. The vast majority of countries in the world – including Muslim-majority countries – are singularly unimpressed with this effort.

[12] The text may also be found at https://ctext.org/liji/li-yun.

[13] It is possible to give only a brief sketch here, but the research behind this point may found in other papers (currently available at https://www.humanities.org.au/wp-content/uploads/2018/11/AAH-SYMP18-BOER-Chapter.pdf; https://www.humanities.org.au/wp-content/uploads/2018/11/AAH-SYMP18-BOER-Paper.pdf).

[14] Article 11(1) is relevant here, which mentions that state parties ‘recognize the rights of everyone to an adequate standard of living for himself and his family, including adequate food, clothing, and housing, and to the continuous improvement of living conditions’.

[15] As part of party rebuilding under Xi Jinping, as well as society as large, the core socialist values continue to be assiduously promoted at all levels. They appear in adjectival form: prosperous and strong (fuqiang); democratic (minzhu); civilised (wenming); harmonious (hexie); free (ziyou); equal (pingdeng); just (gongzheng); rule of law (fazhi); love of country (aiguo); dedicated (jingye); honest and trustworthy (chengxin); friendly (youshan). Needless to say, they should be understood within a socialist framework and not twisted in terms of liberalism.

[16] In some quarters, some noise has been raised concerning Chinese billionaires in a socialist society, with relation to the Gini coefficient. These social responsibility reports should indicate the role of such billionaires, and it is worth noting that the Gini coefficient, or ratio between rich and poor, has been steadily falling in China for over a decade.

[17] A more detailed examination of stock markets in China would reveal that it is common to distinguish between fluctuations on the stock markets and the ‘real economy’. The reason: the Chinese economy is not ‘financialised’, as in the United States, where the ultimate fetish of capitalism may be found – money produces money of its own accord (Marx 1894 [1998], 388-97; 1894 [2004], 380-88). In short, the stock market is not determinative of the enmeshed economic situation as a whole.

[18] Yugoslavia, in its break with the Soviet Union, developed what they called ‘market socialism’. In this case, enterprises were collectively owned but they sold products – internally to Yugoslavia and externally to a capitalist Europe – in a capitalist framework. Hence ‘market socialism’. Some suggest that the Chinese borrowed this model for their own approach, but this is not the case. As is their custom, they studied various approaches and came up with their own.

2018: The Year Apple Products Became Obsolete

Is 2018 the year that the global symbol of U.S. technological innovation became obsolete? Or is it the year when we began to realise a reality that has actually been the case for a while?

Not so long ago, it was a given that Apple products would be manufactured in China, but that the crucial value-adding would take place in the United States’ infamous Silicon Valley. In this way, companies like Apple could maintain a stranglehold on the global supply chain. No matter that it was often Chinese whizz-kids who were actually in Silicon Valley, finding new ways to keep Apple in front and ensuring the final value-adding.

In 2018 a few small but significant shifts took place. Let put this in terms of personal experience. A couple of years ago and against my better instincts, I had accepted a Macbook Air from an employer. I eventually became used to the machine, even with its counter-intuitive and closed structures. It had a good battery and good modem inside and it seemed to work passably well for the first year or so. But it was always a frustrating piece of equipment. After a year or so, its basic clunkiness became more apparent. Despite all the vaunted hype by Apple enthusiasts, I found it no better than other machines I had used earlier.

In late 2017 I was fed up. In Beijing I bought a new Xiami laptop, which had recently been launched. At all levels, it is simple a superior piece of equipment. Xiaomi’s aim is to produce the best possible product at a reasonable price. This one was about half the cost of a Macbook Air. What had happened? I thought. Is this an anomaly? No, the value-adding had all taken place in China.

I could repeat these observations concerning the Xiaomi phones, but perhaps Huawei is a better example. In 2018 Huawei produced the world’s best smart phone, with integrated AI (artificial intelligence) and a ‘killer’ camera developed by Leica. Its global market share surged past Apple, and is now just behind Samsung. In a couple of years, it will become the world’s top-selling smartphone.

Is this a sudden development? Not at all, for the enmeshed socialist market economy of China has been in this path for a number of years. Technological breakthroughs – from high-speed trains, through bridge construction to smart phones and quantum communication – have been actively fostered. For example, for some years now more new patents are registered from Zhongguancun (near where I live in Beijing) than from Silicon Valley. While the former has been attracting more and more global talent, the latter has seen a brain drain.

In this light, the crude efforts – by one or two countries such as the United States and Australia – to suggest that Huawei, for example, is a ‘security risk’ should be seen for what they are: desperate rear-guard actions to try and restore the fortunes of companies like Apple.

The catch is that people know the technology is now increasingly obsolete and yet one is supposed to pay a premium price for such technology.

As someone from India – where Chinese high-tech products are in very high demand – put it: I am sick of the United Stated forcing obsolete technology on the rest of the world at gunpoint.

An insight into the socialist market economy

This year marks the 40th anniversary celebrations of the reform and opening up and the development of the socialist market economy (which is different from a capitalist market economy). As part of the celebrations, 100 people who have contributed significantly to the reform and opening up were nominated for awards. As the People’s Daily reports:

The award candidates come from a wide range of professions, including scientists, economists, grass-roots Party cadres, model workers, state firm managers, and private entrepreneurs.

Feedback is being sought until 30 November, after which the final list will be announced. Nothing remarkable in such an exercise, although some attention has been directed to the nomination of the drivers of China’s world-leading e-commmerce, such as Ma Yun (also known as Jack Ma) of Alibaba. Everyone in China knows that he is a long-standing member of the communist party, so nothing new there.

More significantly, the award exercise opens a window into the functioning of China’s socialist market economy. Although proper research goes much deeper, engaging with Marxist economists in China, the following, from the People’s Daily, is a helpful start. It concerns what may be called an enmeshed economy, where state, society and economy are so intertwined that it is almost impossible to speak of separate entities.

Party not meddling in running of firms: experts

The Communist Party of China (CPC) branches inside private companies help enhance corporate management and improve teamwork without meddling in decision-making processes, and concerns over any executive affiliated to the Party reflect a lack of knowledge about how the Party functions at the grass-roots level, experts said on Tuesday.

Jack Ma Yun, founder of Chinese e-commerce giant Alibaba Group, was identified as a Party member on Monday, which sparked heated discussions online. Some media reports said it was an example of how the Party penetrates into every aspect of Chinese business.

This is actually not the first time it has been revealed that Ma is a Party member, media reports said. When the Zhejiang Merchants Association was first established in October 2015, Ma was appointed as the first head of the organization and introduced as a Party member.

Those who are worried that growing Party branches and committees inside private companies might jeopardize the interests of shareholders or affect decision-making have no basic knowledge about how grass-roots Party cells operate and what their roles really are, Su Wei, a professor at the Party School of the CPC Chongqing Municipal Committee, told the Global Times on Tuesday.

“Before the CPC implemented the ‘Three Represents’ and allowed private entrepreneurs who had met the requirements to join the Party back in 2001, the number of private businessmen who were Party members accounted for a large proportion of the total number of private entrepreneurs. And many had already become Party members even before they started their own business,” Su said.

It is unknown whether Ma joined the Party before he started Alibaba. The e-commerce firm was contacted by the Global Times but did not comment on this matter by press time on Tuesday.

Membership of the Party and corporate management are two unrelated things, Su noted. “The board of shareholders is in charge of decision-making and daily operations, while Party cells are set up to make sure the company’s operations are in line with the principles and policies of the CPC,” he said.

China recently released a trial regulation for Party branches stating that Party cells inside private firms can help guide and supervise enterprises to follow the country’s laws and regulations and safeguard the legitimate interests of all parties, according to a document released on Sunday.

The cells will also contribute to team building inside companies and boost corporate development, the document showed.

“It’s crystal clear what role Party branches play in private companies,” Su said, noting that Party cells are not established with the aim of replacing management teams or meddling in decision-making processes.

Party benefits

Alibaba established its Party branch in 2000 and upgraded it to a Party committee in 2008 due to the company’s growing number of Party members, according to media reports. Alibaba now has nearly 200 Party branches and about 7,000 Party members. Ma highlighted the importance of Party construction work with younger generations, pledging to explore Party building inside high-tech firms in the new era.

Over the past few years, more and more private companies, especially tech start-ups, have set up Party branches and committees to improve management and enhance team building. Some entrepreneurs also admitted that Party members, who are usually hardworking employees, have become role models at workplaces.

“We hire graduates every year and some of them are Party members, who usually work hard and are eager to learn, creating a positive work environment,” Liu Ren, vice general manager of Dailywin Watch Group, told the Global Times Tuesday.

Tech firms such as iFlytek and smartphone maker Xiaomi have been strengthening their Party construction work. “The rapid development of iFlytek is thanks to the correct guidance of the CPC and the hard work of Party comrades, who are also the backbone of our management team,” Wu Dehai, Party chief of the CPC committee of the company, told the Global Times in a recent interview.

The trial regulation for Party branches said that if there are at least three Party members in an organization, it should set up a Party branch.

The private sector is a key part of China’s reform and opening-up, and it has been developing with Chinese characteristics, Su noted.

“The interests of shareholders of listed private companies do not contradict the core interests of the CPC, as the Party also wants to pursue opening-up and economic growth,” he said.

The Chinese Model: A different approach to engaging with Africa

This insightful article was published recently in The Global Times. It is written by He Wenping, a senior research fellow at the Charhar Institute in China, and by Hisham Abu Bakr Metwally, an economic researcher at the Central Department for Export and Import Policy under the Egyptian Ministry of Foreign Trade and Industry.

It’s time for Europe to learn from China in engaging in Africa

The just-concluded EU Summit on migration has come up with measures like securing centers for migrants to process asylum claims, strengthening external border controls, and boosting financing for Turkey and countries in North Africa. But these are old solutions to old problems.

Since 2015, the EU has been working at full capacity to overcome the migration crisis. EU member states received over 1.2 million first-time asylum applications in 2015, more than double that of the previous year. But it seems that the European continent is still working in the same old way to try to prevent the entry of immigrants and not to address the causes of migration. Even if we assume these measures bring success in reducing immigration for some time, the EU will later be surprised when migrants use other means and methods to migrate, because the causes of migration still exist.

The root of migration is poverty. The African continent has suffered occupation and war for many decades. Many African countries have not yet been able to achieve the path of reform and development. This has put the people of these countries under unbearable pressure from poverty, ignorance and disease. They have pushed themselves into the abyss and tried to cross the border to reach Europe. They have faced danger and horror, believing a chance at a better future is worth dying for, if necessary.

With the emergence of the new system of globalization, the world became a small village and Africans opened their eyes to the luxury and good life enjoyed by Europeans, which inspired them to move to these countries. The majority of people from African countries continue to blame European countries for their backwardness and believe they should shoulder their responsibilities toward Africa. As a result of the failure of European countries to play the role that the African people were waiting for, these masses migrated to Europe to try to gain these rights. Europe, when dealing with refugees, looks at them from a perspective of human logic or empathy and does not view migration as a symptom of a disease. European countries must change their thinking and strategy to deal with the disease in order to make the causes of migration disappear.

It is time for Europe to look at the Chinese experience in Africa. The Chinese policy has always focused on development. Economic relations between Africa and China have grown enormously, especially since 2006. The African continent is playing an important role in the Belt and Road initiative. China provides infrastructure funding and a workforce, and this infrastructure allows Africa to increase its production and exports, improving the quality of life and improving the conditions of millions of Africans.

Hope is the solution. The people of the African continent need hope. At least this last summit has come out with some words about more investment in Africa to help the continent achieve a substantial socio-economic transformation. China has been focusing on African development for a long time and has seen the results. The EU should work closely with China to push for the B&R to fight poverty in Africa and promote development.

He Wenping is a senior research fellow at the Charhar Institute in China, and Hisham Abu Bakr Metwally is the first economist researcher at the Central Department for Export & Import Policy under the Egyptian Ministry of Foreign Trade and Industry.

China’s socialist model enriches global governance philosophy

I rather like this piece from the Global Times yesterday:

The most discussed challenge to liberal democracy in the West nowadays is the perceived threat of China’s rise and the “Chinese model.” That China has rapidly risen in a development model different from that of the West has startled and upset the West. Does China attempt to overthrow the Western liberal order? Would it spread its development ideas, values and political system to other countries? Such worries haunt many Western scholars, politicians and media outlets.

To figure out whether China is a threat to liberalism, the Economist initiated a debate “Should the West worry about the threat to liberal values posed by China’s rise?” as if liberal values are paramount standards that couldn’t be challenged.

After the Cold War, Western liberal democracy and the market economic system, which are built on core liberal values such as individual freedom, equality and capitalism, gained their momentum. Francis Fukuyama, an acclaimed American political scientist, even declared free-market liberal democracy would become the world’s “final form of human government.”

However, it’s absurd to hold Western liberal democracy was the “end of history.” Since the 2008 financial crisis, the Western world has undergone serious economic, political and social turbulence. Political polarization in the US, the European migrant crisis, Brexit and the rise of populism on both sides of the Atlantic all indicate the West has been mired in a liberalism crisis.

Fukuyama was compelled to revise his original opinion and turned to fear for the future of liberal democracy. He called to examine the deep structural reasons for dysfunctional democracy. Unfortunately, a more prevailing view is to blame external threats for the fall of liberal democracy, regardless of what deserves more attention is not threat from outside, but from within.

The West should make self-introspection for the liberalism crisis. Liberal ideas and institutions failed to solve the problems facing developing countries. Many developing governments found it hard to govern their country well after copying Western political systems and were plagued by political and social woes. More newly emerging countries have become skeptical about the Western model. In sharp contrast, the Chinese model is gaining popularity and giving hope to those countries longing for rapid development while maintaining independence.

The Chinese model has undoubtedly raised questions over liberal values, but it also enriches development philosophy. There is neither “end of history” nor “end of evolution” for development model. Now it’s the time for the West to seriously reflect upon its own problems and reconsider its values. What it needs to do is to improve and move forward, rather than be obsessed with past success. If it continues to defend its internal decay by fabricating external threats, liberal democracy and institutions will face a bigger crisis.

If you wish to read further, there is also an intriguing article about a Nigerian proposal to change to a one-party system and socialist economy in Nigeria.