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Struggle in China

Two developments worthy of note

By Deirdre Griswold

Two recent developments in China are of great interest in trying to assess the strength of the pro-socialist elements in the Communist Party of China versus those who want to push even further in the direction of market capitalism.

The first has to do with what has happened since the announcement, made July 1 by General Secretary Jiang Zemin, that the party should open its doors to membership by capitalists and entrepreneurs.

An article by Xu Yufang in the Oct. 23 Asia Times Online of Hong Kong says that Jiang's proposal "met its end, in fact, in the CPC Central Committee plenary session of September 24-26, according to informed sources."

This has also been confirmed by other Chinese sources.

Asia Times is a bourgeois paper representing Hong Kong's capitalist class. It often refers to China's communist leaders in condescending or disparaging terms. However, it praised Jiang's proposal as an "imaginative idea of granting party membership to people who at present are not eligible--the bourgeois, and entrepreneurs in particular."

The writer then adds that the proposal was "dead even before the Central Committee met. A consensus was reached at a 'Minzhu Shenghuohui' ('democratic life meeting,' a sort of informal tea gathering) in early September, attended by most members of the Politburo and three high-brow senior elders, Qiao Shi, Song Ping and Liu Huaqing. During the meeting, Jiang was targeted for making his bold announcement before going through the normal channels of formulating major party policies. Subsequently, the central secretariat, headed by Jiang's heir-apparent Hu Jintao, decided to drop the open-door proposal from the business of the Central Committee plenary session."

The tone of the article treats contemptuously the response by older leaders of the party to Jiang's attempt to bypass the authority of the Politburo. It shows how the capitalist media are only too happy to knock democratic processes in favor of "innovation" when it suits bourgeois interests.

"Jiang's plan might still have had a chance at the plenary session if he had been able to muster a simple majority of votes in its favor. He failed to do that, and the Central Committee's resolution omitted any mention of the proposal, which meant another nail in its coffin," continued the article.

"However, the biggest blow to Jiang is perhaps not the rejection of his plan, but the criticism aimed at him by his senior comrades for trying to institute dictatorship.

"In the 'democratic life' meeting, Ding Guangen, the CPC propaganda chief and Jiang's major protégé, received the most rebukes for having tried to suppress discussion on the plan's merits while the party had yet to make a decision. Prior to the meeting, Ding had gone all out to instruct editors of all media to suppress anything that did not conform to Jiang's July 1 proclamation. Ding was reported to have said that there was no longer any room for discussion since the head of the party had made a statement. In criticizing Ding for having confused a leading cadre with the collective leadership, the party elders were in fact reminding Jiang that he should submit himself to the collective will of his peers."

Ding's heavy-handed approach to the Chinese media in order to promote capitalist elements has yet to be even taken note of by the supposed "watchdogs" of freedom of the press in the U.S establishment.

Another development shows that the policy of dismantling China's state-owned industries, which are the material base for what remains of its socialist relations, is running into resistance.

An article by James Kynge in Beijing for the Financial Times of Oct. 23 says, "China has ordered a virtual freeze on the bankruptcy of its larger state-owned enterprises in a sign that crucial industrial reforms are being slowed as Beijing seeks to ward off social unrest."

The article continues, "People inside the government said the supreme court had told provincial courts not to proceed with bankruptcy cases of state-owned enterprises with assets of more than Rmb50m ($6m) unless they had supreme court approval.

" 'This in effect centralizes the decision-making process for all bankruptcies of state-owned enterprises,' said one official, who declined to be identified. 'The government wants to stop bankruptcies of state-owned companies.'"

The capitalist world has cheered the shutting down of state-owned production facilities in China, many of which were built decades ago, as a move toward efficiency. However, their deeper motive, as in the reforms they urged on the Soviet Union, is to break up economic planning and the relation of the socialist state to the welfare of the masses.

China's "iron rice bowl" guaranteed workers and farmers a livelihood, along with housing, education and health care, through their relationship to the state-owned means of production. Where that has been broken down, it has resulted in enormous social problems for the masses.

There is no reason a socialist country has to denationalize its means of production in order to modernize them. On the contrary, China will emerge much stronger if it is able to shift its emphasis to improving and expanding the industrial resources that belong to all the people instead of those that have enriched the new bourgeois class.

Reprinted from the Nov. 1, 2001, issue of Workers World newspaper

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