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This is a translation of 중국의 사회성격과 노동계급 Ⅱ-3. 중국의 지배적인 국가소유 체제 After AI’s translation, we proofread it. There might be errors. All comments are welcome.


<Index>

. From the 1949 Revolution to the 1978 “Reform and Opening-up”

China's birth as a workers’ state/ “New Democracy”: Chinese Class Cooperation/ Class collaboration of Bureaucracy and “socialism in one country”/ Stalin's Check on China: Seeds of Sino-Soviet Conflict/ Fantasy of “Class Coexistence”/ Political consciousness of the United States and the Kuomintang/ Realization of ‘Permanent revolution’/ Outcome of the Revolution/ Three Ways to Improve Productivity/ 1) The First Way to Promote Productivity: Helping Developed Countries by Revolution/ Productive force and Permanent Revolution/ Failing of Follow-up Revolution in Advanced Capitalist Countries/ Sino-Soviet Conflict and Breakdown of Economic Cooperation/ Mao’s Evaluation of the Sino-Soviet Conflict/ Isolated China/ 2) The Second Way to Promote Productivity: ‘Great Leap Forward Movement’/ Catastrophe, Mao's downfall and Right Turn/ Policies of Liu Shaoqi and Deng Xiaoping Leadership/ The Cultural Revolution of Mao Zedong Faction/ Deified Authority/ China in a state of panic: Background of the ‘Cultural Revolution’/ Changes in the ‘Three Kingdoms’ relationship/ China Helping the U.S.-made Blockade of the Soviet Union/ Mao's Death and the Power of the Pragmatic Faction/ Road to ‘Reform and Openness’

II. Changes in Chinese society as a result of 'reform and opening up': China's social character as a deformed worker state has not changed

1. Significant growth in productivity

2. Dangerous growth of pro-capitalist forces in China


3. China’s Property Relationship: Still Dominant State Ownership System

  1) Nationalization of Key Industries and its Proportion

‘State Ownership Dominates the Chinese Economy’/ The Growth of State-Owned Enterprises/ Percentage of state-owned enterprises in the top 500/100/

2) Nationalization of the Financial sector such as Bank

State-Owned Banks of China/ The Purpose and Operation of the Banks of China/ Securities, Insurance and Other Financial Sector

3) Foreign Investment

China's Foreign Investment/ Uncomfortable Imperialism/ List of Imperialist Nitpicking and the Left Advocates: ‘Debt Trap Theory’/ China’s Motivation for Overseas Investment: ‘One Belt, One Road’/ The Difference to Imperialist Aggression/ African and Latin American Infrastructure Construction/ The Formation of China-Friendly Public Opinion/ The Myth of the ‘Chinese Debt Trap’

4) International Comparison of Public Enterprises

Summary and Conclusion of II-3

 

The delay of the world revolution and low levels of productivity plagued modern China, which was founded by 1949 revolution. For decades, China has experienced intense pains. As a result, 'capitalist concessions' were forced.

China's productivity has grown significantly due to the capitalist concession policy called "Reform and Opening-up." As the widespread poverty was almost resolved, the living standard of the working people improved remarkably. However, during that period, pro-capitalist forces in China have grown significantly, including "emerging capitalists, pro-capitalist factions in bureaucrats, a large number of people who tasted the sweetness of capitalism, and imperialist finance capital that penetrated China." As a result, The charater of Chinese worker's state was greatly eroded in quantity. This time, society is leaning to the right and in danger of a capitalist counter-revolution.

However, the social character of modern China, formed by the Russian Revolution in 1917 and the Chinese Revolution in 1949, has not yet changed qualitatively. China is still a state-owned political and economic system.

We examine the point through 'national core industries, finance system, overseas investment, and comparison of public enterprises by country'.

 

1) Nationalization of Key Industries and its Proportion

China’s key industries such as ‘electricity, communication, road, railway, port, construction and transportation,’ strategic industries such as ‘oil, aerospace and military,’ and financial industries such as ‘bank, securities, and insurance’ are all owned by the state.

“Through reforms over the past 30 years, state-owned enterprises have experienced numerous changes. However, state-owned companies have enjoyed many privileges by taking advantage of their special status in the Chinese economy, thereby forming a monopoly status. In particular, state-owned companies have used their existing superior status to operate exclusively in industries that occupy important positions in the national economy, such as oil, natural gas, telecommunications, electricity, tobacco, coal, aviation, finance, and insurance. Currently, most of the major companies in China's monopoly industry are central state-owned companies, and the combination of natural and administrative monopolies is hindering the technological progress and innovation of the industry.”Contents and limitations of reform of state-owned enterprises in China 중국 국유기업 개혁의 내용과 그 한계점, International Labor Brief, March 2012

 

‘State Ownership Dominates the Chinese Economy’

It is indisputable that China's core industry is state-owned. However, the evaluation of the proportion of state ownership varies slightly depending on the researcher's standard and evaluation year. However, almost all studies acknowledge that "state ownership dominates the Chinese economy," with only slightly different specific figures.

Korea Institute of Taxation and Finance 2010,

“Total operating income of state-owned enterprises in 2009 was 24.2 trillion yuan, up 5.5% year-on-year, and the proportion to total GDP was about 71.1%Chinese state-owned enterprise reform research report 중국 국유기업 개혁 연구 보고서, Korea Tax and Finance, June 2010

Bank of Korea in 2014,

“In 2013, the total sales of Chinese state-owned companies were about 47 trillion yuan, reaching 82.1 percent of GDP (56.6 trillion yuan).Most large companies, including 82 state-owned companies in the world's top 500 companies, are state-owned companies”Status and Prospects of China’s State-owned Enterprise Reform 중국의 국유기업 개혁 현황 및 전망, Bank of Korea, November 2014

Bank of Korea in 2017,

“China’s state-owned enterprises play a pivotal role in major industries with land and financial support: total assets (131.7 trillion yuan) and total sales (45.9 trillion yuan) of state-owned enterprises recorded 177.0% and 61.7% of GDP, respectively"China's economic structure and institutional changes and constraints 중국경제 구조 및 제도변화와 제약요인, Bank of Korea, August 2017

JoongAng Newspaper 2019,

“The GDP of socialist China should be viewed differently from that of the West. In China, state-owned companies account for 63% of GDP. Western companies aim to maximize profits, but Chinese state-owned companies aim not to maximize profits but to expand the welfare of the people.”Why is China calm despite the lowest growth in 27 years, 중앙일보, November 27, 2019

As such, according to research institutes and research years, the proportion of GDP in sales of Chinese state-owned companies is at least 61.7% (the Bank of Korea 2017) to a maximum of 82.1% (the Bank of Korea 2014). This shows that China can never be put in the basket of capitalism.

Typical capitalist countries, the United States and the United Kingdom, are in very contrast to this. According to the Bank of Korea above in 2017, the total assets and total sales of Chinese state-owned companies are 177% and 61.7% of GDP, respectively. However, the total assets of US public corporations are 2% of GDP, and the total sales of the UK are 1.56% of GDP (Korea Tax Research Institute, May 2010).

 

The Growth of State-Owned Enterprises

With the dramatic growth of the Chinese economy, the size of state-owned enterprises has also grown even more. “Since the launch of the National Self-Defense Commission in 2003, the total assets of state-owned companies in 2017 have doubled to 160.5 trillion yuan (about 2.73 won) over the past five years (Understanding of reform of state-owned companies in China 중국 국유기업 개혁에 대한 이해, KB Financial Group Management Research Institute, April 2018).”

Total assets and the proportion of fiscal income of state-owned enterprises

 

Percentage of state-owned enterprises in the top 500/100

When abbreviated to the top 500 companies, the nature of state ownership is more clearly expressed.

“The number of state-owned and government-invested companies out of China’s top 500 companies was 331, accounting for 66 percent of the total number of companies, and operating income was 22.93 trillion yuan, accounting for 85 percent of the total.”Contents and limitations of reform of state-owned enterprises in China 중국 국유기업 개혁의 내용과 그 한계점, International Labor Brief, March 2012

Going to the top 100 companies, it becomes dramatically clearer. State-owned enterprises account for nearly 90 percent of sales.

In Orange box: Sales(%), Net profit(%)

Changes in China's Industrial Landscape through the Top 100 Companies

LG Business Research, 2010

 

2) Nationalization of the Financial sector such as Bank

The term ‘financial’ here is not what Marxist science calls ‘finance capital as an economic entity in the imperial era that combines industrial and bank capital that appears in the monopoly stage of advanced capitalist countries.’ However, it refers to the industrial sector in charge of ‘banking, securities, insurance, etc.’ and ‘distribution of monetary goods(capital).’

Money, represented by gold and silver, is an universal equivalent of goods. In other words, money can purchase all goods, and it is a medium that measures the amount of value of all products. Therefore, except for one-time and exceptional barter, both producers and consumers can establish economic relationships only through money. All economic players want money. All economic activities are done through money. So money is the starting and ending point of economic activity.

Thus, the financial industry sector, such as banks in charge of money circulation, is a path to economic activity and a vital point. Money circulation plays a role like the ‘heart and blood vessel’ in terms of the human body in that it mediates each economic activity and moves the necessary goods. In addition, it can be said to be the ‘conductor’ of the economy in that it restores or subsides each sector of the economy by adjusting the direction and amount of money circulation, and controls the direction.

Financial sector therefore serves as a mirror to the country's economic situation. Looking at the Chinese economy through such finance, it can be confirmed again that ‘state ownership dominates the Chinese economy.’

State-Owned Banks of China

Wang Yun-jong's China's Economic System: Backwardness and Vulnerability in the Government-controlled Financial System 중국의 경제체제: 관치금융시스템의 후진성과 취약성," published in November 2017 by the Seoul National University Institute for International Affairs, explains Chinese finance abundantly.

Wang Yun-jong first points out that almost 100% of Chinese banks are state-owned.

“China has 99.45 percent of state ownership of banks. In the early 1980s, when the single banking system centered on the People's Bank of China began to diverge, various commercial banks were established, but they were all government-owned banks. Stock commercial banks, which began to be established in the late 1980s, were also practically owned by the government because they were joint ventures between state-owned companies or by state-owned companies and local governments.”

This is also a widely confirmed fact among researchers, and there is little room for reconsideration.

 

The Purpose and Operation of the Banks of China

Next, the business purpose and operational method of Chinese state-owned banks are quite different from private banks in capitalist countries.

The capitalist system regards the exclusive profit of private capital as the greatest goal on earth. In this system, banks are at the top of the food chain. In the face of profit, the banks have no blood or tears. They don't care about the well-being of members of society. They are ferocious predators who do not mind slaughter or war.

But China's banks based on state-owned systems do not. Private profit is not a priority for their business.

“In most control-based systems, banks are privately owned, traditionally independent, powerful actors who vigorously enforce their interests. In China, however, banks have very few ways to enforce their interests; for example, legally they have low priority in repayment in the case of bankruptcy. Banks are not allowed to own stock directly. Most important, because of their long tradition of passively accommodating government lending policies, banks have neither the capability nor a clear mandate to aggressively monitor enterprise performance.”Chinese Economy: Transition and Growth to the Market, Barry Naughton

“In China, however, banks have very few ways to enforce their interests,” said the above, “legally they have low priority in repayment in the case of bankruptcy.” From a capitalist point of view, it’s not a bank if it doesn’t enforce their interests. There is no reason for existence in capitalism. And banks that “have low priority in repayment in the case of bankruptcy.” cannot survive in the capitalist jungle.

Moreover, according to the above, the owner of a Chinese bank is not a private capitalist. Chinese banks are “passively accommodating government lending policies, have neither the capability nor a clear mandate to aggressively monitor enterprise performance.”

It is also confirmed through Wang Yun-jong’s study that the banks of China perform according to the national policy logic, not the logic of private capital.

“The reason why China is lagging behind in the financial sector domestically is the status of the central bank, the People's Bank of China, at the national level. It is no exaggeration to say that the People's Bank of China has little independence as a central bank. The president is only one of 35 members of the State Council and briefs on China's economic situation and interest rate levels every two weeks. The actual monetary policy authority is determined by the top decision-makers or members of the State Council.ibid.

 

Securities, Insurance and Other Financial Sector

Not only the banks, but also securities and insurance are dominated by state-owned enterprises.

“Top 5 companies of banks, securities and insurance are state-owned companies whose owner is Chinese government(in parentheses, proportion of government):

Banks: Gongsang Bank(69.3%), Construction Bank(57.1%), Agriculture Bank(79.2%), China Bank(64.0%), Transportation Bank)26.5%

Securities: Jungsin Bank(38.8%), Haetong Bank(45.6%), Gwangbal Bank(23.6%), Guktae Bank(49.7%), Chosang Bank(75.6%)

Insurance: China Insoo Insurance(96.9%), China Pyeongan Insurance(45.2%), Shinhwa Insurance(84.0%), Pacific Insurance(72.1%), China People Insurance(100%)

Local government majority stake in the case of financial institutions and shareholdings, even if rate is low, " de facto control of events System change and the limiting factors and economic fabric in China 중국경제 구조 및 제도변화와 제약요인, Bank of Korea, August 2017.

2016 study of the International Society for Contemporary China is almost the same description.

“In the case of securities companies, state-owned companies are still in a leading position, although not as much as banks.. Jungsin (中信) haetong (海通) Guotai Junan (國泰君安) gwangbal (廣發) Eunha (銀河) other major securities firms are all national series

The insurance industry is dominated by state-owned insurers. Chinese assistant secretary of state in life insurance and non-life insurance, state owned companies such as China Inbo(中國人保), Pyeongan(中國平安), PIC(中國太平洋保險), Taikang, (太康人壽) and NCI(新華人壽), rate of more than 70 percent.”Economic Characteristics of the financial, state-owned and land 중국 특색 사회주의의 경제적 특징 금융, 국유, 토지, International Society for Contemporary China firmly maintaining Chinese socialism, November 2016.

And in stock and bond markets of China's opening or other capital significantly lower than in capitalist countries.

 

한국

미국

중국

주식

33.4%

13.2%

1.6%

채권

6.4%

42.8%

1.2%

중국경제 구조 및 제도변화와 제약요인, 한국은행, 20178

 

3) Foreign Investment

Trade in modern industrial society is vital economic activity. It is also vital for China. By explosive industrial growth, China need more foreign goods. At the same time, some wealth accumulated in the role of ‘workshop of the world’ went abroad.

But China’s ‘motivation’ of overseas investment is thoroughly different to that of capitalism, especially imperialist countries. In this regard, the analysis of overseas investment in China is also a meaningful window into China’s social character.

 

China’s Foreign Investment

China’s overseas investment increased sharply in the 2000s, especially after the financial crisis from the United States in 2008.

BBC, 6 January 2022

A surge in foreign investment was usually headed to South America and Africa, which had a lot of resources. The funds that went abroad purchased local resources on better terms and funded infrastructure construction such as roads, ports and power plants. In that way, China gained local popularity. Upon receiving the benefit of the Chinese funds, many countries in Africa and Latin America is a friendly attitude towards China.

 

Uncomfortable Imperialism

Then, the imperialists became ill-tempered. Their eyes on China have become more straightened. China, a producer of vast resources and work force, is itself a coveted prey. If a capitalist counter-revolution occurs, as in the Soviet Union and Eastern Europe, it will once again give imperialist financial capital bonanza. Capitalism, which is spilling all sorts of filth and breathing hard, will rejuvenate. However, the prey holds out by raising its head and revealing hidden muscles. In addition to that, it repeatedly challenges the U.S.-centered imperialist hegemony in solidarity with semi-colony such as Russia, Venezuela, Iran, and worker's state like Cuba and North Korea. Moreover, it now expands its influence, undermining the colonial gardens that have been cultivated for decades in Africa and Latin America.

 

List of Imperialist Nitpicking and the Left Advocates: ‘Debt Trap Theory’

The imperialist media has become busy. Thus, China's overseas investment was placed on the anti-China nitpicking list. The phrase ‘China's loan industry, debt trap’ has begun to be pushed as a buzzword. The argument goes like this. ‘China puts African and Latin American countries in a ‘debt trap’ by expanding overseas investment. It affects the country's politics and steals assets by providing indebtedness.’

Because it's not true, it's a sham propaganda that can only be argued and cannot be grounded. But each country’s puppet media follows the propaganda. Interestingly, even some domestic and foreign organizations pretending to be ‘left-wing, progressive, labor’ accept the propaganda as it is. The so-called ‘leftists,’ who even define China as ‘not only capitalism but also imperialism,’ are struggling to support their impressionistic non-science. Then, if anything looks plausible, they promptly bite. They gulp down the bait without checking whether it is imperialist or not. The steel fish hook hidden behind the bait passes through the nose and pierces the top of the head. This is the case of recent Worker’s Institute of Social Science(노사과연).

 

China’s Motivation for Overseas Investment: ‘One Belt, One Road’

To maintain the industry through the economic blockade of the U.S.-centered imperialist camp, China needs natural resources such as oil and minerals and a transportation route for supplies to safely transport their resources to the mainland. In order to avoid political and diplomatic blockade and isolation of the U.S. imperialist camp, it is essential to secure friendship among ‘third-world’ countries.

“China has emerged as the world’s second-largest oil consumer after the United States since 2002 due to a surge in demand for oil, energy and mineral resources

China promotes its own energy-securing strategy in line with its policy not to rely on US-led international oil and raw material markets as much as possible

Investment centered on state institutions and state-owned enterprises: China's foreign direct investment is centered on state institutions (SAFE, CIC) and state-owned enterprises (only 10.2% of the total number of foreign-invested enterprises as of 2010, but these enterprises account for 73.5% of total investment)”China’s foreign direct investment trends and characteristics after the global crisis 글로벌 위기 이후 중국 해외직접투자 동향 및 특징, Bank of Korea, January 2013

These facts are not so secretive or esoteric. In fact, multiple researchers, who carefully examine the relationship, point out China's motivation for overseas investment like that. “China's Economic Cooperation in Central and South America and Africa 중남미와 아프리카에서 중국의 경제협력,” the Institute for Foreign Economic Policy in December 2021, explains this problem in more detail.

“One belt one road business isDomestic factors such as the need to shift economic development strategies and the U.S. Obama administration's Pivot to the Asia-Pacific strategyIt was created with the aim of responding to external factors such as strengthening checks on China in the Asia-Pacific region.

The plan is to build a land silk road connecting Central Asia and Europe and a maritime silk road connecting Southeast Asia, the Indian Ocean, Africa, and Latin America at the same time. The land Silk Road aims to promote trade and economic development between China and neighboring countries through infrastructure maintenance such as roads and railways, and the marine silk road is designed to improve infrastructure centered on ports of each region. In the case of Latin America and Africa, the focus is on building infrastructure to secure resources such as mine development.”

 

The Difference to Imperialist Aggression

As such, China’s overseas investment is a struggle to survive through the imperialist blockade. This is very different from imperialism's overseas expansion of receiving super profits.

Finance capital in advanced capitalist countries, which reached the monopoly stage at the end of the 19th century, advances overseas for super profit, the ‘profit beyond profit exploited by their own workers’ [This concept is very important for understanding imperialism!]. In order to obtain super profits, super exploitation is required, and super exploitation inevitably results in fierce resistance from local workers. Imperialism carries out cruel tyranny to suppress the resistance of the local people and maintain the colonial system. This is why military dictatorships, coups, assassinations, civil wars, and slaughter are frequent in the colonies.

It is difficult to find these characteristics of imperialist foreign domination in China's overseas investment.

First of all, China's overseas investment centered on state-owned enterprises, unlike imperialist private capital, does not set profit as the greatest goal on earth. Platform.c's translation (28 October 2021) introduces this difference.

“Compared to transnational private capital, Chinese state capital is relatively more compromised with Zambian authoritiesDuring the 2008 economic crisis, as copper prices fell below production costs, transnational capital KCM (Indian capital) and MCM (Swiss capital) announced a series of production cuts and large-scale redundancy. However, the NFCA (China African Mining Limited) would rather not cut jobs, cut production, or cut wages.The Zambian government's response to the "super profit tax" also revealed this distinction. When copper prices peaked, the Zambian government decided to collect additional "super profit taxes" under strong pressure from the private sector and opposition. Meanwhile KCM and MCM strongly opposed this, senior officials of CNMC (NFCA's parent company) rather expressed support. Subsequently, China's national capital was actively in charge of the construction of the Zambian mining district's multifunctional economic zone, which was the core of Zambia's development strategy to enhance the added value of the copper mining industry. Transnational capital such as KCM and MCM never supported the project because there was no profit to be gained.”The peculiarity of Chinese national capital revealed in Zambian labor politics in Africa 아프리카 잠비아 노동정치에서 드러난 중국 국가자본의 특수성

To sum up the article, ‘unlike other imperialist capital, Chinese capital does not cut production even when the economy gets tough, does not take all of its profits when copper prices soar, returns to the state through excess profit taxes, and takes on projects that do not want to benefit immediately.’

 

African and Latin American Infrastructure Construction

In order to pursue China’s political and economic national interests in Africa and Latin America to avoid imperialist vested interests such as the U.S., the U.K., and France, it was important to please the governments of each colonial country and the local people. So much of the Chinese money earned from the world's factories was spent on the construction of the country's industrial infrastructure, which was not immediately profitable.

“Economic relations between China, Central and South America, and China and Africa have grown rapidly around trade since China joined the WTO in 2001, and many countries in Latin America and Africa have benefited from the surge in Chinese resource imports. From the mid-2000s, China's investment in South America and Africa was activated, and from the late 2000s, development financing and official development assistance distribution began in earnest to these countries. As a result, China has become a major economic cooperation partner for most countries in Latin America and Africa.

Experiencing Western sanctions and isolation, it has expanded diplomatic cooperation with Latin American and African countries as a way to win political support from other continental countries except Western countries. There is a recognition that support from third-world countries such as Latin America and Africa is essential to establish a diplomatic support environment for gradual change in the international order that China aims for.

“China has become Africa's largest trading partner since 2009, with trade volume between China and Africa reaching $170 billion in 2017. China also said it has contributed greatly to the development of African infrastructure, providing investment and loans for 6,200km of railways, 6,500km of roads, 20 ports, 20 bridges, 80 power plants, and 80 stadiums in Africa by 2017.”China's Economic Cooperation and Foreign Economic Policy Research Institute in Central and South America and Africa 중남미와 아프리카에서 중국의 경제협력, December 2021

According to Chinese Foreign Ministry spokesman Wang Wen-bin’s Facebook post (August 6, 2022) and China Daily (August 19, 2022), China has built more than 10,000 kilometers of railways, 100,000 kilometers of roads, nearly 1,000 bridges, nearly 100 ports, 66,000 kilometers of power transmission facilities, and hospitals in Africa.

 

The Formation of China-Friendly Public Opinion

As a result, the BBC (May 7, 2021) reports that the friendship with China in Africa has increased significantly.

“African leaders and China have a common understanding, based on three main areas: Human rights, economic interests and non-interference in internal affairs.Increasingly Africa's largely pro-China position is pitting the continent against the West when it comes to human rights. During a vote in June 2020 at the UN Human Rights Council in Geneva about the controversial Hong Kong national security law, which imposed harsh penalties on political dissent and which effectively ended the territory's autonomy, 25 African countries-the largest grouping from any continent-backed China.their decision to turn to China for infrastructure funding especially in the last 20 years-has transformed the continent's landscape with expansive roads, bridges, railways, ports and an internet infrastructure that has ensured the continent is not a pariah in the digital economy.Some of these projects are part of China's multibillion Belt and Road Initiative which 46 African countries have signed, says Mr Otobo. “Where is the equivalent from the West?” he asks, adding that it would be difficult to match the scale of China's funding. he said, adding that it would be difficult to match the size of China's funds.Western powers know that they cannot compete with China in terms of loans and infrastructure.”Why African countries back China on human rights

 

The Myth of the ‘Chinese Debt Trap’

In the above article, there is also a shy reference to the so-called "debt trap" that some of the so-called "left-wing" who view China as imperialism recognize, saying, "The theory of the trap of debt has collapsed." Sri Lanka Airport is almost an example of the "Chinese debt trap." However, another article by the BBC (January 6, 2022), which does everything with the title alone, explains the Sri Lankan case like this.

“Analysis of the port project by UK-based think tank Chatham House has questioned whether the “debt trap” narrative strictly applies, given that the deal was driven by local political motivations, and that China never took formal ownership of the port.

It points out that a large proportion of Sri Lanka's overall debt was owed to non-Chinese lenders, and that there's no evidence China has taken advantage of its position to gain strategic military advantage from the port.”China: Is it burdening poor countries with unsustainable debt?

Like the BBC above, even major imperialist media accept that the ‘Chinese debt trap theory,’ which has no basis and is rampant with claims, is a fiction created during the Trump administration. The same goes for the February 6, 2021 article by Johns Hopkins University professor Deborah Brottigum and Harvard University professor Megrismeier (The Chinese ‘Debt Trap’ Is a Myth).

Bloomberg’s March 18, 2022 video (The Myth of the Chinese Debt Trap in Africa) dubbed the world’s top three economic news providers, also explains so, summarizing the issue at the beginning of the video as follows.

“Over the past two decades, China has built large infrastructure projects in almost every country in Africa, making Western powers uncomfortable amid wider concerns about Beijing’s investments across the continent. However, a deeper look shows that accusations of so-called debt trap diplomacy turn out to be unfounded.”

 

4) International Comparison of Public Enterprises

In September 2017, the OECD released a report titled The Size and Sectoral Distribution of State-Owned Enterprises in OECD member and partner countries. “Based on data submitted by governments and related organizations of countries that responded to the OECD survey, the report was prepared by further investigating external data on listed companies.”

There are 40 member states and partners who submitted the data, "United States, China, Japan, Germany, UK, India, France, Canada, Italy, Brazil, South Korea, Australia, Spain, Mexico, Saudi Arabia, Netherlands, Switzerland, Poland, Turkey, Sweden, Argentina, Norway, Israel, Ireland, Austria, Denmark, Colombia, Chile, Finland, Czech Republic, Greece, Hungary, Slovakia, Lithuania, Costa Rica, Slovenia, Latvia, Estonia" (Rank by GDP).

The report, which compares the 'number of companies, number of employees, and corporate value' of all public companies owned by 40 countries, compares public companies in all countries except China and China as follows.

Taking China aside for a moment, governments in the sample area are the full or majority owners of 2 467 commercially-oriented enterprises valued at USD 2.4 trillion and employing over 9.2 million people.

In China alone, the central government owns 51 000 SOEs, valued at USD 29.2 trillion and employing approximately 20.2 million people.”

Let's just pick out the corporate value again. “The total value of public enterprises in 39 countries in the sample area excluding China is 2.4 trillion dollars,” and “China is 29.2 trillion dollars.” The total value of Chinese state-owned enterprises is about 12 times more than the total value of state-owned enterprises in 39 countries including the United States, Japan, Germany, the United Kingdom, and France!

China's total population is approximately 1.4 billion, and the total population of the remaining 39 countries is over 3 billion. However, the value of public enterprises is more than 12 times that of all other countries in China.

Can China be put in the same basket as the rest of the 39 capitalist countries?

  *      *     *

Let’s summarize the entire discussion of II-3: China’s ownership relationship: still dominant state ownership system.

In China, all key industries such as electricity, communication roads, railways, ports, air transportation, oil, aerospace, military and banks are owned by state.

More than 99% of Chinese banks are state-owned

China's overseas investment is led by the state and state-owned companies, and unlike imperialism, receiving "super profits" is not the goal. It does not use the method of tyrannizing the local people.

The total value of Chinese public enterprises is more than 12 times that of public enterprises in 39 capitalist countries, including all imperialist countries.

It is unscientific nonsense to define the country with these characteristics as a capitalist. It is a reactionary perception that sells out the achievements of the Russian Revolution in 1917 and the Chinese Revolution in 1949 with poor impressionism, cowardice, and intellectual laziness.

China's vast possession of the state still remains the result of the revolution. China is not a capitalist country. It is not a private ownership, but a ‘worker’s state in transition’ operated mainly by state ownership. The fate of China, a worker’s state, is on the brink. It will be determined by the fierce battle between the working class and the capitalist class at the world level as well as China and its relationship of force. Along with the progress of the global revolution, it may move toward ‘socialism,’ but otherwise, it may face a catastrophic tragedy of returning to capitalism.

As Marxists, we defend China against a capitalist counter-revolution. Defense of China is a deadly bridgehead for the world revolution.

August 31, 2022

Bolshevik Group

(to be continued)


China and the Left

IV. The duties of the Chinese and global working classes

 


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