Category Archives: China

Issue 19

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  1. As Capitalist Rulers Beat on the Unions and Poor: Opposing Racism & “Aussie First” Economic Nationalism Key to Defending Working Class People’s Rights
  2. Tens of Thousands Protest in Australia on the Day of Land Theft & Genocide Rally Attacked by Ruthless Police
  3. A Hard Right, Racist Bigot Enters the White House Capitalist “Democracy” is a Sham Unleash Industrial Action to Demand Jobs for All Only Workers United with All of the Oppressed Can Bring about Real Change
  4. Expand the Union Action in Defence of Public Housing in Sirius: Fight for a Massive Increase in Public Housing throughout the Country! Still a Chance to Prevent the Destruction of Public Housing in Millers Point and The Rocks
  5. Trotskyist Platform May Day (International Workers Day Statement We Need Militant Class Struggle to Win Secure Jobs for All Workers
  6. Workplace Safety Now Better in China Than in Australia Australian Rulers Union Busting Drive against the CFMEU Union
    Threatens Construction Workers Lives
  7. Good News: China’s Arrest of Crown Executives Endangers Packer’s Barangaroo Project James Packer’s Crown Versus Millers Point Public Housing
  8. Free All the Victims of Australia’s Racist Torture! Jail the Cops and Prison Guards Who Killed David Dungay, Ms Dhu, Rebecca Maher, Wayne Morrison, TJ Hickey, Mulrunji & the Many Other Victims of the Racist, Rich People’s State!
  9. Long Live China’s 1949 Anticapitalist Revolution! Protect the Great Benefits for Workers & the Rural Masses Won through the Revolution: Stop Imperialist Funding for Those NGOs that Seek to Overthrow Socialistic Rule in China
  10. Defend the Dominance of Socialistic, State-Ownership in China’s Economy! China: Pro-Worker and Pro-Private Sector Forces Lock Horns
  11. Racist Atrocities in Kalgoorlie
  12. Force Profitable Companies to Increase Hiring – Make Them Wear the Resulting Lower Profits Stop Billionaire Bosses from Retrenching Workers! No to Slave Wage Internships and Work for the Dole! For Fully Paid, Permanent Jobs for All!

China: Pro-Worker and Pro-Private Sector Forces Lock Horns

Defend the Dominance of Socialistic, State-Ownership in China’s Economy!

Above, a common site in China: youth wearing the communist hammer and sickle emblem. Mass support for communism in China has thus far constrained capitalist restorationist tendencies within sections of the ruling bureaucracy. Photo: Trotskyist Platform

2 December 2016 – Last week, Fidel Castro passed away at age 90. Fidel led the 1959 Revolution that would end up overthrowing capitalism in Cuba and bringing terrific improvements to the lives of the Cuban masses. In response to his death, Chinese president, Xi Jinping lauded Fidel’s achievements. Here are some excerpts of Xi Jinping’s message of condolences to Raul Castro, first secretary of the Central Committee of the Communist Party of Cuba:

Fidel Castro, founder of the Communist Party of Cuba and Cuba’s socialist cause, is a great leader of the Cuban people. He has devoted all his life to Cuban people’s great cause of struggling for national liberation, safeguarding state sovereignty and building socialism.

He has made immortal historic contributions to the Cuban people and to the world socialism development.

The Cuban and Latin American people lost an excellent son, and the Chinese people lost a close comrade and sincere friend. His glorious image and great achievements will go down in history.

I believe that under the strong leadership of Comrade Raul Castro, the Communist Party of Cuba, the Cuban government and its people will carry on the unfinished lifework of Comrade Fidel Castro, turn sorrow into strength and keep making new achievements in the cause of socialist construction.

Xinhua, 26 November 2016

President Xi’s fulsome praise for Fidel and Cuba’s socialistic path reflects the fact that China itself is under socialistic rule. While Cuba’s revolution came in 1959 and was the first – and to date – only decisively anti-capitalist revolution in the Western Hemisphere, China’s anti-capitalist revolution came ten years earlier. It brought the long suffering toiling masses to power in the world’s most populous country and freed China from over a hundred years of humiliating, colonial servitude at the hands of Western and Japanese imperial overlords.

However, the Australian media did their best to hide the substance of the Chinese president’s letter of condolence over the death of Fidel. They reported very briefly that Xi had sent his condolences but made sure they did not report on Xi’s praise for Cuba’s socialist system. Why? Because to do so would highlight the continued socialistic character of the Peoples Republic of China. The mainstream Western media don’t want to do this. In fact, they sometimes even try to make you believe that China has simply “gone capitalist.” To admit otherwise poses a very inconvenient fact for the capitalist media: the fact that the country with the world’s fastest growing economy that has managed to lift hundreds of millions of its people out of poverty – i.e. China – has done so while based on a socialistic system. To admit this blows sky high out of the water the main anti-communist argument that people in the capitalist world are taught from the time they go to school and start watching documentaries: socialism may sound like a fair system but it just does not work in practice.

Top, Harlem, U.S.A, 1960: Fidel Castro meets American black revolutionary leader Malcolm X. Fidel led the 1959 Revolution that would end up overthrowing capitalism in Cuba and bring terrific improvements to the lives of the Cuban masses. When he visited New York for a UN meeting the year after the revolution, he was ostracised by the American establishment. However, in an act of solidarity with the oppressed black peoples of the U.S., Castro then chose to stay at a hotel in the black neighbourhood of Harlem reinforcing his hero status with supporters of black liberation and anti-imperialism. When Castro passed away in November 2016, Red China’s leader Xi Jinping hailed Castro’s “immortal historic contributions to the Cuban people and to the world socialism development.” However, Xi did not attend the funeral for Castro, only sending his vice president Li Yuanchao, seen at the Bottom laying a wreath for Castro at the Jose Marti Memorial in Havana, Cuba. Xi’s choice not to attend Castro’s memorial was no doubt an attempt to placate the far-right, U.S. president elect Donald Trump. Fat good that did the Peoples Republic of China! Trump and Co. wasted no time in attacking China. They even broke with decades of diplomatic protocol by provocatively giving legitimacy to the renegade, capitalist Chinese province of Taiwan. The policy of severely downgrading solidarity with the international struggle for socialism in the name of “peaceful co-existence” with imperialism that is practiced by China’s leaders – as was also practiced by the post-1924 leaders of the former Soviet Union and largely by Castro too after the initial period following the Cuban revolution – harms not only the global socialist struggle but socialistic rule in China itself.

Of course, the capitalist media do very often contradict their own, sometimes used, “gone capitalist” narrative about China. They, indeed, start talking about “communist China” whenever they manage to find an area that they can attack the Peoples Republic of China (PRC) over and exaggerate a problem – like pollution – or when they misrepresent events to accuse the PRC of “human rights violations.” The lying capitalists, actually, know very well that the PRC is not a capitalist entity but a socialistic state. That is why the capitalist-owned media look for any opportunity possible to demonise China, why the U.S. and Australian regimes support anti-PRC NGOs and dissidents within China and why investment from PRC state-owned companies are especially scrutinised by Australian government authorities. Most notably, it is why the Australian military is openly being built up to join the U.S.-led crusade against China even though the PRC is this country’s biggest export market and the main reason the Australian economy has not yet fallen into a new, deep recession.

Just like the Cuban Revolution, the 1949 Chinese Revolution led to tremendous improvements for the masses in life expectancy, literacy, health care and the position of women. Socialistic rule has lifted hundreds of millions of Chinese people out of the dire poverty of its pre-1949 days with a speed and depth that is completely unprecedented in human history. However, like in, Cuba these accomplishments are not guaranteed because socialistic rule itself remains fragile in China. It is fragile because at the moment the richest and most powerful countries in the world are under capitalist rule. As the counterrevolutionary destruction of the Soviet Union in 1991-92 showed, even a socialistic state that is a superpower can be destroyed by sustained capitalist military, economic and political pressure.

Furthermore, the ability of the Chinese workers state to withstand external capitalist pressure is weakened by its own bureaucratic deformations – by the fact that the administration of socialistic rule is restricted to a narrow, somewhat privileged bureaucratic layer rather than being run by democratic mass organisations of working class people. This structural deformity arose from the nature of the Chinese Revolution itself. This great revolution was made largely by tens of millions of tenant farmers led by idealistic students, teachers and other intellectuals. Awakened and led by Mao’s Communist Party of China, the tenant famers fought with immense heroism to make the revolution.  However, tenant farmers, while brutally exploited by the landlords, were still infused with the individualistic strivings that one day they would produce enough to free themselves from landlord domination and make a good income from selling their produce on the market – perhaps even becoming landlords themselves. Therefore, unlike wage workers who are united by their collective labour at the workplace and thus – when under revolutionary political guidance – could self-organise through democratically elected workers councils, the individual tenant farmers could only be fully united from above. This requirement and the practicalities of waging a long, guerrilla war meant that the victorious revolutionary forces and the ensuing workers state that they created had a bureaucratic – rather than a workers’ democratic structure.

In the late 1970s, the Chinese leadership, unable to use the driving and motivating influence of workers’ democracy to push forward production, turned to market reforms to further stimulate economic activity. These reforms would come to include the creation of a capitalist, private sector. In the complicated transition from capitalism to genuine socialism it can be useful to allow a limited private sector. This is especially the case given that before the 1949 Revolution, China was an extremely poor and backward country where the capitalism that existed was intermingled with elements of feudalism. However, the introduction of a private sector and market reforms to China necessarily brought with it greater inequality, increased corruption, some degree of unemployment and a reduction in solidarity between people. Moreover, the new class of, at first small, capitalists created by the reforms used their influence and wealth to lobby for greater and greater openings for the private sector. This influence was amplified because many of these new capitalists had family or other personal ties to the administrative/party bureaucracy. Today, the degree of private sector operation in China is much in excess of what is needed or desirable for the Chinese workers state. To be sure, the private sector bosses do not control the key sectors of the economy which remain under socialistic state ownership and they do not hold state power. However, the danger that the capitalists that do exist in China could organise a capitalist counterrevolution is a very real one. We only have to look at what happened in the former USSR. It was there that market reforms in the mid-1980s, dubbed perestroika (restructuring), created a class of petty capitalists and speculators. Then Soviet leader Gorbachev did not initially intend these reforms to actually lead to a capitalist takeover and at first that is not what perestroika meant. However, the layer of capitalists that Gorbachev’s perestroika created, with backing from a section of the middle-class professionals and student intellectuals – who expected that they would be amongst those who would strike it rich if capitalism was restored – became a powerful lobby force for further perestroika. They shoved Gorbachev and Co. further and further to the right. Each new set of perestroika reforms that Gorbachev implemented strengthened the economic weight and political influence of the new capitalists and whetted the appetite of pro-capitalist students and professionals. Eventually, with the crucial backing of Western imperialism, the new capitalists and their middle class allies were strong enough to grab back state power in the ex-USSR. The forces that made this counterrevolution were actually small in number. Most Soviet workers and collective farmers were not sympathetic to the counterrevolutionary course and many were downright suspicious of the pro-capitalists. However, in the absence of decisive levels of actual struggle to defend the Soviet workers state, the counterrevolutionaries triumphed.

Today, in China, the capitalists do not yet feel strong enough to openly call for capitalist restoration. They leave that to a rather small layer of Western-funded dissidents and NGOs. Indeed some of China’s capitalists even, rather disingenuously, sing the praises of the ruling Communist Party of China (CPC). They hope that this will save them from having their businesses shutdown – as has happened to many of their capitalist compatriots. But what these Chinese capitalists do a lot of is to use their wealth and political influence – through bodies like the private sector All China Federation of Industry and Commerce – to push for ever greater openings for the capitalist economic sector. They are assisted in this lobbying by a whole swathe of academics, economists, lawyers and journalists sympathetic to capitalism or at least to a greater role for the capitalist sector. This lobbying is indeed powerful especially when one considers that the relative weight of China’s capitalist class is far in excess of that of the capitalists in the former USSR at the time of the counterrevolution there. Fortunately, however, the resistance of the Chinese working class and staunch subjective communists to pro-capitalist measures – like privatisation – is also far greater than existed in the last period of the USSR. However, it is far from guaranteed that the political consciousness of the working class will always be sufficient to ensure that their resistance can hold back capitalist restorationist forces. The struggle in China between insurgent pro-capitalist forces and those resisting them is a finely balanced battle.

Moscow, August 1991: Western-backed capitalist counterrevolutionaries led by Boris Yeltsin make their grab for power in the former USSR. The social layers driving the counterrevolution were the small-scale capitalists and speculators bred by then Soviet leader Gorbachev’s pro-market, perestroika reforms as well as the pro-capitalist students and professionals whose appetites for making it big time in a future “free market” society were whetted by pro-market reforms. In today’s China, capitalists are bigger than they were in the USSR at the time of counterrevolution there. This shows the danger that socialistic rule in China is under today.

See-Sawing Contest

In the mid and late 2000s, the insurgent pro-capitalist forces in China were pushed back to some extent. China’s political climate in that period was shaped by increased activity of leftist tendencies within the CPC, the manifest weakness of capitalism worldwide as seen in the Great Recession and – most crucially – militant workers struggles for improved wages and conditions and against the few attempts made at privatisation during this period. The period from 2008 to 2011 in particular was the most left-wing period in China in over three decades. This period saw the nationalisation/confiscation of not only many formerly privately owned coal mines but nationalisations across a range of sectors from steel to milk processing to solar cell manufacturing.

However, from about 2012 the political climate in China swung back to the right – at least on economic issues. China’s capitalist class and the host of economists, academics, lawyers and even CPC politicians loyal to them re-asserted themselves. This was reflected in some of the agenda of China’s new number two leader (ranking below president Xi), premier Li Keqiang. Li implemented special measures and tax incentives to help new private businesses. He also pushed for allowing private enterprises access to several areas like oil/gas, infrastructure construction, health care etc which had previously been restricted almost exclusively to publicly owned enterprises. Although the strength of pro-socialist forces is such that no CPC leader openly calls for privatisation of any of China’s major state-owned enterprises, the CPC leadership – including both premier Li and president Xi – have pushed for the sell-off of minority stakes in state-owned enterprises to private investors.

Developments over recent years in China have, of course, not all been in one direction. President Xi Jinping’s anti-corruption campaign has genuinely reduced corruption even though there is a suspicion that it has also been used against Xi’s political rivals – including those from the left of the CPC. Importantly, the anti-corruption campaign has protected the assets of state-owned enterprises from being squandered by corrupt state enterprise managers handing contracts to bribe-paying, private business bosses. In a small number of cases, the CPC’s drive against corruption and privilege in government officials has spilled over into healthy moves against opulence in the broader Chinese society. In early 2014, authorities in major Chinese cities ordered the closure of high-end clubs and expensive restaurants in public parks, scenic spots and cultural sites because these venues could not be accessible and affordable to the masses. Those high-end clubs and restaurants that were not closed were ordered to lower their prices and change their menus to turn them into places affordable by the masses. Meanwhile, formerly members-only clubs that were allowed to stay open were ordered to turn into open access venues. Alongside the anti-corruption, anti-opulence campaign, the ruling Communist Party of China has toughened its membership rules to ensure that all party members believe in the party’s stated ideology. On the one hand, this drive for ideological consistency has been, in part, used to silence leftist critics of pro-market reforms within the party. Nevertheless, it has also had positive effects. It has weeded out some ambitious professionals with little solid sympathy for communism who joined the party for merely career reasons and it has deterred capitalist businessmen from joining the party purely to enhance their connections with government. The most important positive developments in PRC politics in recent years is the continuation – and in some cases the deepening – of some of the progressive policies of the previous Hu Jintao government. This includes the moves back to universal public health care, a massive campaign to build and renovate affordable public housing, an increase in social security and pension payments and the enforcement of the drive to improve workplace safety. Most crucially, the new Xi Jinping government has re-committed to the previous Chinese government’s drive to bring every single resident in China above the national poverty line by 2020; and has moved to achieve this goal with renewed vigour.

Furthermore, many of the right-wing economic measures proposed have not been implemented much. Nevertheless, there has been a change in the political discourse from a few years ago. The suspicion of private business bosses that was sometimes seen from CPC officials and Chinese media during the Hu Jintao period, itself a reflection of healthy hostility to capitalists amongst the Chinese working class, is now more and more replaced with praise of their “innovative” capacities and their “entrepreneurship.” Sensing the mood, in March on live TV, China’s then finance minister, Lou Jiwei, ranted against the PRC’s 2008 labour law for being too pro-worker saying that it was contributing to unreasonable wage rises and making it too hard for bosses to sack workers. Although the strongly pro-worker law was not amended, Lou Jiwei’s attack on it represented a clear drive by the most pro-market wing of the Chinese bureaucracy to curb wage rises and slash employment regulations imposed on bosses.

Rightist elements of the CPC leadership – and the academic/economist circles backing them – are also using moves to cut over-capacity in China’s steel and coal sectors as a way to weaken the influence of socialistic state enterprises – state-owned enterprises being dominant in these sectors. Additionally, they are trying to use these cuts as a way to change the culture of PRC state enterprises. They want to prod these socialistic enterprises to retreat from their previous reluctance to lay-off workers and push them into operating more according to “market principles” (i.e. solely according to the profit motive). There is, indeed, over-capacity in China’s steel and coal sectors – the latter because China is moving intensively away from coal and onto renewable energy sources like hydro, wind and solar. However, not only should these cuts to overall capacity be done in a way that guarantees equivalent paying jobs for all workers moved out of these sectors but it should be done by forcibly closing the, often, poor safety and high polluting private enterprises that are part of these sectors. That would not only ensure that the tens of millions of workers remaining in these sectors have the best possible working conditions but would also make a huge boost to workplace safety in the dangerous coal sector in particular. Yet, thus far, the cuts to overcapacity seem to be roughly in proportion to the relative weights of socialistic and private enterprises in these sectors.

However, these recent pro-market measures have met with mass resistance. In March, thousands upon thousands of coal mine workers employed by state-owned Longmay Group marched through the northeastern Chinese city of Shuangyashan to protest against wage arrears resulting from the provincial government holding back support to the struggling company in order to push it into slashing the size of its workforce. A large number of similar workers’ protests and strikes have taken place throughout China in state enterprises facing similar predicaments. Meanwhile, Chinese people used social media to bitterly attack then finance minister Lou Jiwei’s criticism of China’s pro-worker labour laws. A comment made by Weibo (China’s popular social media platform) user, Se Kong Se Kong, typified the reaction to the ex-finance minister’s tirade:

Have him investigated ….

He’s no good if he’s speaking on behalf of the capitalists!

Financial Times, 10 March 2016.

All this protest and defiance from Chinese workers and leftists has had an impact. For instance, two weeks ago, rightist Lou Jiwei, was unceremoniously dumped as China’s finance minister two years before his term was due to end (he has since been given a much lower-ranking post). This was, no doubt, at least partially related to his anti-working class comments attacking China’s Labour Law and to the spirited mass opposition to his tirade. It was also reportedly connected to his pro-“free market” opposition to large state investment in infrastructure and fixed assets by local governments. Meanwhile, the huge Shuangyashan city protest by Longmay Group workers led the Heilongjiang provincial government to back down within hours of the workers’ action. The provincial government and its Governor, Lu Hao, apologised to the workers and arranged to fund the struggling state-owned company so that it could pay the workers the wages owed to them. More broadly, the PRC government has responded to workers’ concerns by stepping up efforts to ensure that workers laid off from steel and coal enterprises will be re-hired in state infrastructure projects, state-owned farms and state forestry projects immediately after – or in some cases even before – losing their previous jobs. Meanwhile, some state-owned firms cutting capacity in the steel and coal sectors have started up operations – even loss making ones – in often very different industries in order to avoid laying off workers. State owned coal companies in China’s main coal producing province, Shanxi, have set up pharmacies, solar power stations, restaurants, supermarkets and vegetable and fruit planting to move their workers into. One state-owned coal company, Qianhe Coal Industry, that had to cut its capacity, started organising its workers into production of food products – including tofu and potato noodles – in order to pacify its workforce. It is now even going to move its operations entirely from coal producing to the food products industry – even though its new area of operation is not currently profitable (Quartz, 31 March 2016).

Such moves by state-owned enterprises are significant as they undercut the agenda of rightists within the CPC and Chinese and Western “experts” who all hoped that downsizing in China’s state-owned coal and steel enterprises would help wean China’s state-owned enterprises away from their devotion to preserving workers’ jobs and push them onto the profit first path. For his part, premier Li has been forced into a partial back down in two key areas by the workers protest and leftist agitation. Firstly, Li and the rightist advisors and economists influencing him, were pushing for more unprofitable state-owned enterprises – dubbed “zombie industries” – to be forced into bankruptcy and, thus, into retrenching their workers. Although this plan is partially still going ahead, last month the PRC government announced a scheme whereby those holding the debts of enterprises would be able to swap them for equity. In other words, the mainly state-owned banks owed money by indebted companies will end up taking stakes in these companies allowing the companies to wipe out their debts and continue operation. The companies that will mainly benefit are state-owned enterprises as struggling private companies usually simply shut down and retrench all their workers when in financial trouble rather than maintaining major unpayable debts for long periods. For those private companies that are indebted the scheme will facilitate them to be effectively part-nationalised, since state-owned banks will end up owning significant equity stakes in them. Secondly, Li has, in practice, been forced to retreat from his promise to refrain from using large-scale state investment to stimulate the economy. The angry protests by state enterprise employees threatened with unemployment forced premier Li to boost state spending on infrastructure and development projects in order to create jobs for displaced former coal and steel sector workers to be moved into. For example, three months ago, the Chinese government announced an over $A300 billion plan to fund 130 projects in the north-eastern region of China – the part of the country with a disproportionately large concentration of enterprises in the steel and coal sectors.

The PRC government’s return to emphasis on state investment is driven not only by the imperative to respond to workers’ concerns but also, in part, by pure economic reality. The fact is that with the world capitalist economy – and thus demand for Chinese exports – in the doldrums and with profit-driven, Chinese private sector bosses less willing to make productive investments in the real economy because their ability to make profits has been curtailed by rising workers’ wages in China and the 2008 pro-worker Labour Law, the PRC government needs state-owned enterprises to drive growth. To put it simply: capitalism doesn’t work but socialism does and thus the PRC government, regardless of the political leanings of some of its key personnel, must once again rely on the socialistic state sector to shore up the economy. That is why despite all the special tax concessions and other incentives given to private enterprises, Chinese private investment in fixed assets grew by less than 3% in the first ten months of this year while investment by the state sector surged by over 20%.

A similar story can be seen if we look at the issue of administrative measures imposed on the housing market. During the period of Hu Jintao’s presidency from 2002 to 2012, Chinese governments imposed a series of measures to reduce housing speculation in key areas in order to make house prices more affordable to the masses and to ensure that housing construction was geared towards the needs of low and middle income earners. These measures included requirements for developers to meet certain minimum proportions of smaller housing, restrictions on the number of houses that people could own and regulations that made banks charge higher interest rates – and require higher down payments – for those buying second homes as opposed to those buying first ones. As part of these measures many major Chinese cities banned people from owning more than two homes. However, private sector housing developers and pro-“free market” economists, journalists and other “experts” complained bitterly that the measures were “distorting the market” and undermining the “healthy development of housing supply.” These voices obtained a bigger hearing from Chinese leaders in the post-Hu period and as a result in the 2013 to 2015 period some of the administrative restrictions on speculation were relaxed. However, that led to a rebound in speculation and opulent purchases of multiple house by the wealthy. Though this squeezed many lower-income people out of the private housing market, fortunately China has massively built public rental housing to enable lower income people to still get stable accommodation. In the last few months, however, the Chinese government has again returned to anti-market, administrative measures to curtail housing speculation and restrict the wealthy from buying up multiple houses.

The clearest sign that the political winds blowing to the Right in China are starting to recede was seen last month at a high profile meeting of government leaders and state enterprise heads about the direction of state-owned enterprises. The main theme of the meeting was president Xi Jinping’s insistence that it is imperative to: “unswervingly uphold the party’s leadership in state-owned enterprises, and fully play the role of party organs in leadership and political affairs (South China Morning Post, 12 October 2016). Xi insisted that any “weakening, fading, blurring or marginalisation” of party leadership in state firms would not be tolerated.” The meeting vowed to turn around the situation whereby the party’s presence in state-owned enterprises had started to gradually fade into the background over recent decades as these public sector companies became influenced by Western corporations. At the conference, which was notably held when pro-private sector prime minister Li Keqiang was away on an overseas trip, Xi also insisted that China’s state-owned enterprises are an important material and political basis for socialism and called to make these public enterprises stronger, bigger and better (Xinhua, 11 October 2016). This was a clear statement in defence of state-owned enterprises from China’s top leader and a slap in the face to others within and around the CPC trying to weaken them. Furthermore, by insisting on strengthening Communist Party control of state-owned enterprises Xi also contradicted statements by some Chinese leaders – including, to some extent, his own previous statements – calling to turn these state-owned enterprises into more profit-driven corporations. Thus, Xi’s speech at the conference ordered that state-owned enterprises should become important forces to implement decisions of the CPC Central Committee as well as to enhance overall national power, economic and social development and people’s wellbeing. This means that, at least according to the speech, the PRC state-enterprises would re-commit to maximising employment and protecting working conditions as a goal in itself, rebuffing the drive by some within the PRC bureaucracy to push the public sector enterprises into slashing their workforces. Notably, the Xinhua article on the state-owned enterprise work conference reported that Xi stressed the importance of protecting state owned enterprise workers’ rights to know, participate, express and supervise within the enterprises. He added that important matters concerning the immediate interests of workers must be submitted to workers’ congresses for deliberation and the system to ensure workers’ representation as the directors and supervisors of state-owned enterprises should also be improved.

An important positive consequence of this PRC government drive to increase Communist Party control of state-owned enterprises is that it will undercut their own plan to allow private investors to take minority stakes in state-owned enterprises. After all, if Communists are to be running these enterprises and if they are not going to subordinated to the profit motive but also be directed to meet national and social goals – like maximising employment, improving workplace safety, developing poorer parts of the country and spearheading the development of new industries– then what money-grubbing, capitalist investor in their right mind would want to put their money into them! This is especially the case when one considers that the rate of profit return on PRC state-owned enterprises is already only around half that of capitalist enterprises. These public sector enterprises – despite the often monopoly position they hold in Chinese markets – are simply not geared to the blind drive for profits and that is a good thing! Consequently, premier Li Keqiang’s “mixed ownership reform” – to bring private investment into state-owned enterprises – has often not led to the intended consequences. The most touted example of a “mixed-ownership reform” in recent years was Chinese state-owned oil refining giant Sinopec’s decision to sell-off a 30% stake in its distribution and marketing business to “private” investors. However, in the end it was other state-owned companies that bought up nearly two-thirds of this stake. A similar story occurred when China’s main oil producer, state-owned Petrochina, decided to sell-off half of its Central Asian pipelines. The announcement caused considerable excitement amongst Chinese capitalists and pro-“free market” economists and amongst Western “experts” and business journals. Yet, in the end, the entire stake simply went to another PRC state-owned company!

Profile of China’s Pro-Capitalist Advocates

Like the Western-funded NGOs seeking to undermine socialistic rule in China, locally emerged pro-capitalist voices in China shroud their agenda with calls for “democracy.” Billionaire venture capitalist Wang Gongquan (Left) is among China’s best known “pro-democracy” dissidents. He wants a Western-style (i.e. bourgeois) “democracy” so that the wealthy will be able to use their financial resources and connections to dominate the political agenda. A fan of Wang is Chinese property tycoon Ren Zhiqiang (Right), himself a very prominent “pro-democracy” advocate who opposes the Communist Party censoring publications that call for Western-style “democracy.” Ren is also an ardent critic of the PRC government’s administrative measures that restrict the rich from dominating the housing market. Showing his contempt for the poor, Ren once said that commercial residential housing is meant to be for the rich not the poor.

Smash the Political Influence of the Capitalist Class!

Despite what appears to be the first signs of a possible tilt back to the left in China in recent months, as long as there is a capitalist class in the PRC able to wield some political influence then the danger of capitalist counterrevolution is acute. Especially when capitalists within China have family, personal and cultural ties to the ethnic Chinese capitalists who rule Taiwan and Singapore, enjoy economic dominance in Hong Kong and Macao and also form a component of the capitalist ruling classes in places like Malaysia and the Philippines. Moreover, the U.S., British, Japanese, Australian and other imperialist ruling classes are working feverishly to undermine socialistic rule in China.

The response of China’s ruling bureaucracy to the threat of counterrevolution is not to organise for a struggle to outright smash the capitalist threat. Instead, they seek a balance – a truce – between, on the one hand, socialistic rule in China and, on the other, the out of power capitalists within China and the capitalist classes that rule most of the rest of the world. However, such a strategy is in the long run untenable. Socialism and capitalism cannot, ultimately, co-exist. We should remember that from the mid-1920s onwards – when the leadership of the former Soviet workers state started to move away from the truly revolutionary internationalist perspective that guided the 1917 socialist revolution – the USSR’s leaders tried a variant of the policy currently pursued by Beijing. And look what happened there!

The force that has a clear interest in waging a struggle against the capitalists to the end is the Chinese working class. Time and again, as China’s capitalists looked to be set to gain the economic weight, momentum and popular acceptance necessary to make an open bid for power, struggles of the Chinese working class and agitation by leftist elements within the CPC have intervened to push the capitalists back. Today, these forces must resist any sell-offs of minority stakes in state-owned enterprises to private investors. They must breathe life into the workers’ congresses in these enterprises and use them as a force to defend working conditions for workers and to ensure that the state-owned enterprises stay committed to overall social goals and maximising employment rather than to the blind drive to maximise profit. The Chinese working class and leftists must also defend the 2008 Labour Law against any attempt to weaken its pro-worker provisions and must, instead, fight for the strengthening of these laws. They should build workers’ committees – drawing into them staunchly pro-communist officials, police and Peoples Liberation Army soldiers – to investigate enterprises and ensure strict enforcement of the Labour Law’s pro-worker provisions. Such committees would fight for a policy whereby any private business that violates the Labour Law or any safety regulation is immediately confiscated by the PRC state and turned into a publicly owned enterprise. All these struggles should be part of a fight to smash the political influence of the capitalists and restrict the private sector to the level that is actually needed in the transition stage to socialism. Of course, the capitalists, their allies within the upper middle class and their imperialist backers would furiously oppose such a struggle. In the resulting decisive clash between the politically conscious working class and pro-capitalist forces the tightrope balancing act played by the current ruling bureaucracy would be shaken out of existence. The different elements of the bureaucracy would be flung onto two opposing sides. Those types, like pro-capitalist ex-finance minister, Lou Jiwei, who are closest to the capitalists would fall squarely on the capitalist their side. On the other hand, more subjectively communist elements and those closest to the masses would end up on the side of the working class (as would, inevitably, some careerist elements who see the inevitability of a workers’ victory). Thus, a workers struggle to smash the capitalists’ political influence and curb their economic power would not only fortify the PRC workers state but would also lead to the political administration of the PRC passing from the wavering hands of the bureaucracy and on to the control of the councils of workers and their allies that had just organised the defeat of the insurgent capitalists. The genuine communists who would guide such a struggle by the pro-socialist working class would understand that such a victory cannot be truly secure while the capitalists hold state power in nearly all the most powerful countries in the world. That is why they would link the struggle to defeat the insurgent capitalists within China to a perspective of solidarity with the workers and oppressed all around the globe in their struggles against their capitalist rulers.

The biggest impediment to such an outcome is that, currently, the international factors weighing on the class contest in China are almost entirely on the side of the insurgent capitalists. We workers and leftists in the imperialist countries need to change this and change this fast! The workers movement here should oppose political attacks on the PRC workers state from Australia’s capitalist regime (including those made under the pretext of “human rights”) and must oppose the anti-PRC Chinese exile organisations. We must build solidarity actions with progressive actions by the PRC workers state such as the implementation of pro-worker labour laws and the massive increase of public housing. The Australian working class and its allies must also stand against the U.S./Australian capitalist rulers’ military build up against China and must oppose their anti-PRC provocations in the South China Sea as the capitalist powers want all this military pressure to add to the all-round political squeeze that they are subjecting the PRC workers state to.

The incoming Trump regime in the U.S. has promised a still more aggressive posture towards China as well as a massive military build up. Today, as a blatant provocation against Red China, president-elect Trump broke with diplomatic protocol and held a phone call with the president of Taiwan, the part of China that the defeated capitalists seized when they were booted out of power by the 1949 anti-capitalist revolution. This is the first known contact between a U.S. president or president-elect and a leader of the rogue province of Taiwan since the United States broke diplomatic relations with Taiwan 37 years ago. The U.S. backs and massively arms Taiwan but adopted the diplomatic position of not recognising Taiwan as a way to way to maintain diplomatic and, hence, trade relations with the PRC while simultaneously undertaking its anti-PRC machinations. Trump’s phone call with the Taiwanese leader and their discussion about how to boost Taiwan’s military strength – inevitably against the PRC – is a signal that U.S. imperialism is going to unleash a more openly confrontational policy against socialistic China. Genuine communists living in the U.S. and its imperialist allies like Australia have got our work cut out. Let’s get to it!

James Packer’s Crown Versus Millers Point Public Housing

Good News:  China’s Arrest of Crown Executives Endangers Packer’s Barangaroo Project

Above Left, Australia, 2016: Police harass a homeless Aboriginal family in Sydney’s Belmore Park. In Australia, the legal system targets the working class and people on the lowest income. Aboriginal people are hit with severe racist, anti-working class repression with many Aboriginal people being killed in state custody. By contrast, in socialistic China, where the overall rate of imprisonment is much lower than Australia, the system is toughest on rich capitalists and corrupt government officials. Above Right: Xu Ming, one of many billionaires jailed in China. In December 2015, this capitalist exploiter, who was once one of China’s richest people, died in state custody at age 44. James Packer is used to Australia’s system where his exorbitant wealth and economic power buys great political influence. However, his assumption that things would be the same in the Peoples Republic of China have started to bring him a rude shock.

18 November 2016 – Greedy billionaire, James Packer, has been riding high. He was expecting to make an absolute fortune from his Crown Resorts casino and luxury hotel complex which will be built in the Sydney CBD’s, Barangaroo site. However, he was brought back down to earth a bit last month when authorities of the Peoples Republic of China (PRC) detained 18 of his wealthy executives. Among the high-flying Crown executives that the PRC has arrested are at least three Australian ones including Crown’s boss of VIP operations, Jason O’Connor. Those arrested are alleged to have been involved in organising the very activities that Packer’s high rollers’ casino will in good part depend on: luring high rollers from China to gamble at his casinos and other wealthier Chinese to hold their money in overseas casino accounts. Luring Chinese people to do this is illegal under PRC law. Packer and his executives knew all this. But they were so greedy that they could not help themselves and thought they would get away with it anyway. After all, in capitalist Australia, Packer and his ilk always get away with whatever they want! However, China is a very different story. In socialistic China, the “right” of business tycoons and other rich individuals to ride roughshod over everyone else and make a mockery of state laws is severely “repressed.” The PRC, understandably, does not want wealthy individuals depositing money in overseas casino accounts as that could be used to circumvent its strict capital controls which restrict the “rights” of the rich to freely move money about internationally. China also does not want corrupt businessmen and officials to use overseas casinos to launder dirty money or avoid taxes.

If Crown’s efforts to lure Chinese high rollers and wealthy individuals are severely curtailed, it could spell doom for Packer’s Barangaroo complex. Although the proportion of high rollers in China is tiny, China has such a huge population (60 times that of Australia) that these high rollers are, numerically, a big number. Furthermore, since gambling is outright banned in mainland China and PRC authorities have been cracking down on wealthy mainlanders travelling to Macao to gamble, Chinese high rollers now need to travel abroad to gamble. Similarly, other wealthy Chinese individuals need to deal with casinos located overseas in order to secretly move or launder money. That is why Packer was counting on luring Chinese high rollers to Barangaroo as a main income source for his casino.

One of the many positive aspects of the China arrests for working class people in Australia is that it could help the struggle to save public housing in Sydney’s Millers Point area which is right adjacent to the waterside Barangaroo site. Several of the Millers Point tenants who have been staunchest in resisting the NSW government’s drive to sell off public housing in the area are convinced that part of what is driving the government’s moves is Packer’s, very nearby, casino/hotel project. Their suspicions sound more than plausible. Certainly, it is beyond question that mainstream politicians of all stripes and states are servile to Packer. As the The Saturday Paper (12 April 2014) put it when describing the way that Packer received official backing for his Barangaroo plan:

State and federal laws and regulations have flexed or melted away in the project’s path. Ordinary rules don’t seem to apply to James Packer.

Thus, after the cabinet of corrupt then premier Barry O’Farrell openly announced its backing of the Packer plan, it appointed to head the “independent” detailed assessment of the project, David Murray, an ex-banker and a Liberal party supporter who has such close ties to Packer that he attended Packer’s first wedding! This “assessment” ended up being even more farcical than expected. The “independent” panel chose to seek their commercial advice about Crown’s proposal from Deloitte which has had a financial relationship with Crown. Meanwhile, it was uncovered that even before the “independent” panel had made its “assessment,” the NSW Premier’s department prepared it with statements to help it defend the Crown proposal from any negative media questioning! After bowing to a notably low tax rate for the planned casino, the state government then further facilitated Packer’s interests by ramming through a 2013 amendment to the Casino Control Act specifically to support Packer’s Barangaroo project. This special change to the Act had the support of not just the governing conservative Coalition but also the ALP and the Shooters Party. Even Fred Nile, supposedly a vehement opponent of gambling, campaigned strongly in favour of it. These amendments to the Act are so slavish to Packer that they ensure that Crown must be paid compensation if any future regulatory changes – like tax increases – hurt its profits. The Act even stipulates that the Independent Licensing and Gaming Authority (ILGA) cannot make any changes’s to a Barangaroo casino license without approval from Packer’s Crown! Not that the ILGA is prepared to stand up to Packer anyway. When, the following year, this “independent” authority conducted its probity check on Crown’s suitability to hold a casino license, the ILGA took only three months to pass Crown which, in the own words of the ILGA chief Micheil Brodie, “probably rates as one of the fastest assessments of a casino applicant in history”. Meanwhile, not only has Packer’s complex been infamously excluded from Sydney’s controversial lockout laws, it was granted a special exemption from workplace health and safety laws restricting smoking in indoor workplaces. As Australian Institute of Architects NSW president, Shaun Carter, put it after Crown’s casino/luxury hotel complex was granted final planning approval this June:

In Sydney you can end up in the Land and Environment Court over a dormer window. But at Barangaroo, you can double your size and replace a public park with a casino with no trouble at all.
http://architectureau.com/articles/approval-of-crown-barangaroo-tower-disappointing-institute-says/

The Reality of Capitalist “Democracies”

James Packer’s massive, $105 million luxury yacht and his $66 million private jet. Like other capitalist tycoons, Packer uses his immense wealth and economic power to gain political influence. Packer is great mates with former prime minister Tony Abbott [Above Right], current prime minister Malcolm Turnbull and most other top politicians.

 In this capitalist society money buys influence. Filthy rich tycoons are able to swing political and bureaucratic decision making through giving hefty donations to political parties, through buying expensive newspaper advertisements (such as the full page ones that Packer’s Crown made promoting its Barangaroo plans) and by having membership in business lobby groups. It is well known that some of the ultra-rich also openly buy out politicians and government officials through open bribery or through purchasing them other favours – like liaisons with high-priced prostitutes. More common, however, are the softer – and yet more insidious – forms of buying influence that almost all capitalist bigwigs engage in.  These include inviting politicians and bureaucrats to corporate boxes to watch the cricket or inviting them to exclusive parties and cruises on their luxury yachts. The ultra-rich capitalists also buy political influence through more subtle means – for example, through funding the arts. On 12 November 2013, the very eve of the day that the NSW parliament voted on amendments to facilitate his Barangaroo project, Packer ostentatiously announced a $60 million donation to various Sydney arts, theatre, opera and orchestra institutions by both his Crown Group and himself personally. This was intended to put pressure on any politicians who may have been considering voting down the amendment with the prospect of gaining the opprobrium of the arts community. Meanwhile, any politicians concerned that open support for Packer’s unpopular Baranagroo project could damage their image would now be re-assured that Packer’s donation would make him be seen by the public in better light. Furthermore, although $60 million is barely pocket money for a person who has a $5 billion fortune (“earned” by his and famous late father and grandfather’s ripping off of the labour of workers), it represents a lot of money to underfunded arts institutions. Imagine a talented young artist asking to get funding from a head of one these Packer-donated institutions for a project satirising the Banagaroo complex. It’s a sure bet that they won’t get very far!

We cannot, of course, forget the lobbyists – a big factor in modern-day capitalist “democracies.” It is only the super-rich who can afford to hire skilled lobbyists. Packer, for example, employed former ALP heavies Mark Arbib and Karl Bitar to use their connections to ensure that the ALP backed the casino. In general, business bosses like to employ former – and, if they can get away with it, even current – politicians and high-level bureaucrats to be on their boards in order to use the connections of these individuals to gain them extra influence in the machinery of state. Thus, amongst the board of directors of Packer’s Crown is former Minister of Communications in the Howard government, Helen Coonan. For his part, Crown CEO Rowen Craigie was a General Manager for Gaming at the Victorian TAB and held senior economic policy positions in Treasury and the Department of Industry in Victoria. Another Crown director, former Qantas boss, Geoff Dixon, was head of the Australian government’s main tourism authority, Tourism Australia, from 2009-2015: that is, throughout the crucial period when Packer was seeking government backing for his Barangaroo project. Big-time capitalists use a similar method to help ensure media support. Thus, the executive deputy chairman of Crown, John Alexander, is a director of Seven West Media – the owner of Channel 7 and its offshoots as well as Yahoo7. He is also a former editor in chief of both The Sydney Morning Herald and The Australian Financial Review. Even more effective in ensuring media support is simple, direct ownership. Packer, himself, directly owns a $28 million stake in the entity that owns Channel 10. So, don’t expect this broadcaster to run any hard-hitting documentaries against Crown’s Barangaroo project anytime soon! Very helpful, too, for capitalist billionaires are the “mates” connections that they develop with media moguls and media high-fliers. James Packer is very close friends with influential, right-wing 2GB shock-jock, Alan Jones, with the 45% owner of Macquarie Media Limited (which owns both 2GB and 2UE) John Singleton and with Lachlan Murdoch, a director of News Corporation (owner of The Australian and The Daily Telegraph newspapers, a host of regional and interstate papers and 50% of Foxtel) who is, of course, the son of its chairman and controlling shareholder, Rupert Murdoch. Then there are the myriad of connections arising from Packer and his father’s former ownership of Channel 9.

Such “mates” connections also cement ties between capitalist bigwigs and the politicians that administer their state. James Packer, for instance, is such close friends with former Liberal prime minister, John Howard, and ex-treasurer, Peter Costello, that they both, once again, attended his first wedding. Packer also played golf with Stephen Conroy when the latter was Communications Minister in the last ALP federal government. Packer is good mates too with Bob Katter and former Victorian premier, Jeff Kennett. Meanwhile, recent ex-Trade Minister, Andrew Robb, had worked for Packer’s PBL company from 1997-2001. What gives individual big capitalists political clout is not only their personal wealth and connections but their control of large chunks of the economy. Capitalist politicians and high-level bureaucrats are always on the lookout for lucrative positions in the private sector to move into once their careers in government or the public service are over. Thus, big business owners can lure these politicians and bureaucrats into doing their bidding precisely because these schmucks hope that this would open up a future career for them hired either directly as executives of or as consultants for their corporations (the way that former Labor powerbrokers Graham Richardson, Karl Bitar and Mark Arbib and prominent Liberal socialite, Ann Peacock, did in getting positions in Packer companies) or by other companies looking to establish links with these corporations. Even less cynical government politicians who actually believe (wrongly!) that they are to some degree representing the people are pulled into the orbit of those with considerable weight in the economy. For in an economic system dominated by private “enterprise,” they are reliant on these firms for providing jobs and for paying taxes into state coffers. The threat of big corporate bosses to withdraw from a major project can be enough to pull government politicians into line.

For those politicians and bureaucrats that still refuse to bow down to a big capitalist’s interests, the latter have nastier means at their disposal. Just as tycoons can build up a loyal politician’s or bureaucrat’s career, the way that the Pratt family industrial capitalists – who are currently second on Australia’s rich list – were the benefactors ensuring ALP Opposition Leader Bill Shorten’s rise (the late Richard Pratt used to let Shorten use his extravagant mansion for fundraising events when Shorten first campaigned for a parliamentary seat and even made his private jet available for Shorten’s use), they can also leverage their wealth to topple the careers of those who are not loyal enough. Look, for instance, at what happened to former ALP prime minister Kevin Rudd in mid-2010. Now, Rudd was an ardent supporter of the capitalist order and, thus, hardly one to make a strong stand against capitalist bigwigs. However, in 2010 he was planning to implement a Resources Super Profits Tax that would have mildly increased the amounts of tax that big mining bosses pay. That was too much for mining tycoons like Gina Rinehart, Andrew Forrest and Clive Palmer who are not prepared to share even a fraction of their fortunes with anyone. They – and other mining capitalists – went on a massive advertising campaign against the tax that saw them spend $22 million in just six weeks. Meanwhile, their friends in the Murdoch and other media outlets backed the campaign against the new tax. All this contributed to a steep fall in popularity for Rudd and enabled his internal ALP rivals to replace him as prime minister. Dancing completely to the tune of Australia’s mining billionaires, the new Gillard government then immediately watered down the tax to such a great degree that it hardly collected any money at all! Of course, the mining tycoons’ opposition to the Resource Super Profits Tax was not the only reason that Rudd was toppled. Rudd is an arrogant individual and was not liked much by his fellow ALP politicians. However, the decisive factor in his demise then was the slump in his opinion poll numbers caused by the massive advertising and media campaign against the Resources Super Profits Tax – a campaign conducted at the behest of the filthy rich mining bosses. The Packers, too, are well aware of the power that they have to bring down politicians or top-level public servants who, even in the slightest, get in their way. And they’re quite prepared to use it! In 1993 when James Packer and his late father, Kerry, first put in a bid for a Sydney casino, James Packer famously rang a Minister in the then NSW Liberal government and said: “the old man told me to ring… this is the message: If we don’t win the casino, you guys are f_cked”.

The truth is that in capitalist “democracies” the much vaunted principle of “one person, one vote” is a farce. For it is the small number of ultra-rich capitalists who have the wealth, control of the economy and connections to influence decision making and shape mainstream public opinion. James Packer with his $5 billion fortune seems to have more influence than at least half of the 5 million or so registered voters in NSW combined. So $5 billion is equal to at least 2.5 million votes.  On average that means: two billion dollars = one million votes. Now that’s much more like the true equation describing capitalist “democracy.”

To be sure, the capitalist state does not serve one particular bourgeois capitalist. Rather, in the words of the Communist Manifesto:  “the executive of the modern state is but a committee for managing the common affairs of the whole bourgeoisie.” However, the relative weight of a handful of tycoons in Australia is so great that the state almost always backs their particular interests.

Save Millers Point Public Housing!
Defend China’s Crackdown on Packer’s Greedy Executives!

Sydney, 19 March 2016: Opponents of the sell-off of public housing in the inner-city Millers Point area, including members of the MUA, CFMEU and ETU trade unions, march in protest. China’s arrest of 18 wealthy executives of James Packer’s Crown empire, including three Australian high-fliers, could undermine Packer’s Barangaroo Casino plan – thus aiding the campaign to save public housing in the Millers Point and Rocks area.

So Packer certainly had more than enough influence to instigate a sell-off of public housing in Millers Point if he wanted to. Would he want to? Yes would be a very good bet on the right answer to that question. Clearing out Miller’s Point public housing would allow the area to be turned into luxury dwellings that can be used by his casino patrons looking for longer-stay, nearby accommodation outside the hotel and for his executives overseeing the casino/hotel complex. All that would help with Packer’s project. Furthermore, even if a re-developed Millers Point site ends up not being directly used, in its majority, by patrons and executives of Crown’s Barangaroo complex, the planned complex is nevertheless driving wealthy speculators to try and grab hold of this land. Such speculators have no doubt been lobbying the government for the sell-off of public housing in the area too. The boost in property prices driven by Packer’s Barangaroo project also gives the NSW government itself more incentive to sell-off the Millers Point public housing as it means they can get higher prices at auctions than they otherwise would.

However, if the Peoples Republic of China follows through with its crackdown on Crown’s efforts to lure high rollers and other wealthy Chinese to deposit money in Crown casinos then the whole game would change. Packer’s Barangaroo project could be pushed into deep water. And if part of the economic forces that are driving the government’s sell-off of Millers Point public housing are stopped then the government will be more prepared to back down if faced with significant opposition from our side. That is why it is in the interest of the fight for public housing that we stand by the PRC’s crackdown. Furthermore, although we do not favour bans on gambling in Australia, it can only be a good thing more generally if Packer’s Barangaroo project goes splat. The whole philosophy behind the project is offensive to us egalitarians: that is, that scenic, beautiful-looking public space could be turned into a members only, high-rollers casino that only the very wealthy can afford to join and a six-star hotel that only the rich can afford to stay in.

Whether the PRC follows through and prosecutes the rich Crown executives is still a live bet. You can certainly bet that James Packer would be using his economic and political muscle to push the Australian government into pressuring the PRC state as relentlessly as possible.  However, the determination of PRC authorities to crack down on Crown’s activities was shown when the suspects were first detained. They were detained in meticulously planned and coordinated overnight raids in several cities. PRC authorities also carefully waited for a time when Crown’s Australian-based VIP international boss, Jason O’Connor, was on a trip to China to launch the raids. Under China’s legal system, suspects are first detained and questioned and then only after lengthy investigation formally arrested if police believe that there is strong evidence of wrong-doing. The fact that the three Australian crown executives were formally arrested today – five weeks after being initially detained – show that Chinese authorities believe that there is clear evidence that they have committed illegal acts.

In standing by the PRC’s crackdown on Packer’s seemingly illegal actions in China, we should be ready for a barrage of condemnation of the crackdown from the big business-owned Australian media and ruling class politicians. That’s what happened the last time the PRC prosecuted corruption from a major Australia-owned multinational. In 2009, China arrested several high-flying executives from part-Australian owned, mining giant Rio Tinto for corrupt activities. Some of these corrupt activities involved making bribes to get PRC state-owned steel companies to pay higher prices for Rio’s iron ore than they would otherwise have paid. Especially as the trial of the Rio Tinto executives took place, then Australian prime minister Kevin Rudd, National Party heavy and now deputy PM Barnaby Joyce and the mainstream media hysterically denounced the PRC’s legal procedures. It did little good. The PRC ended up handing the senior Rio executives lengthy jail sentences – including ten years for Australian Stern Hu. Rio Tinto like BHP, Packer’s Crown, Gina Rinehart and Andrew Forrest’s Fortescue may be above the law here. However, in Red China, where enterprises under socialistic state ownership play the dominant role in the economy rather than corporations owned by tycoons, the state does not in general kowtow to the demands of capitalist bigwigs.

One of the things that the Australian mainstream media and politicians may throw out to defend Packer’s arrested henchmen is the claim that the arrests are arbitrary and over the top. However, it has now emerged that PRC authorities actually issued a stern warning to Crown last year that it was engaging in illegal activities. Australian Crown bosses then responded by trying to fly under the radar of PRC authorities by making short business trips to China instead of spending long stays there. They also started formally marketing their casinos to Chinese people as trips to “resorts” rather than casinos as a way to try and deceive PRC authorities.

Another bit of propaganda that Australian media and politicians may assert in support of Packer is the notion that Crown and Australians have been unfairly singled out by Chinese authorities. However, the PRC has already targeted other overseas casino operators. Last year, thirteen executives of two South Korean casino operators, Paradise and Grand Korea, were jailed for similar crimes to what the arrested Crown executives are apparently alleged to be involved in. Meanwhile, in a massive raid a few months ago, police in the south east Chinese province of Guangdong arrested almost 800 local people for economic crimes including “organizing illegal gambling activities overseas.” Furthermore, in the actual Crown arrests, alongside the three Australian nationals, one Malaysian national and 14 local Chinese nationals were also arrested. Furthermore, eight other Chinese people not working for Crown, some of them likely high rollers, were also detained in the October raids.

If the Australian mainstream media try to give the impression that only overseas businesses and their employees have been targeted in China that too can be easily re-butted. These Crown arrests are, in fact, part of a massive anti-corruption campaign that has been running in China for over two years. Although in some cases there is suspicion that Chinese president Xi Jinping has used the campaign to undermine factional rivals within the Communist Party of China, the campaign has truly clamped down on corruption. Hundreds of high-ranking politicians and businessmen have been prosecuted. Furthermore, perhaps the best aspect of the anti-corruption campaign is that it has to some, albeit small, degree also drifted into a campaign against the opulence of the rich. Thus, in early 2014, Communist Party of China authorities in major Chinese cities ordered the closure of high-end clubs and expensive restaurants near public parks, scenic spots and cultural sites because these venues could not be accessible and affordable to the masses.  It is worth noting here that Sydney’s Barangaroo area is definitely such a scenic spot. In other words, if PRC law were applied here, there would be no Crown Barangroo project (even without the casino)!  By the way, in the PRC’s anti-opulence drive, those formerly high-end clubs and restaurants located near public spots that were allowed to stay open were ordered to lower their prices and change their menus to turn them into places affordable to the masses. So, if the PRC law were applied here, Packer at best would see his Barangaroo project being turned into a centre with free entry nightclubs serving cheap drinks, affordable buffet restaurants for the masses enjoying the waterside parks and a three-star hotel providing clean and cheap accommodation for working class tourists from Australia, China and other Asian and overseas countries looking for an affordable place to stay in the heart of the city.

Perhaps the most likely argument that the Australian ruling class and its media will use to oppose any PRC prosecution of Packer’s henchmen is to claim that the PRC’s legal system is “cruel” and “harsh.” However, actually, Australia’s rate of imprisonment is nearly 30% higher than China’s. What is true is that the PRC does jail business tycoons at a much higher rate than Australia. So the difference between Australia’s current legal system and the PRC’s is a matter of who is targeted by the state. In Australia, the state jails disproportionately target Aboriginal people, people from Middle Eastern and Asian derived ethnic communities and the poor. In contrast, in the PRC workers state – despite suffering from plenty of bureaucratic deformations and the distortions caused by capitalist intrusion – it is wealthy private sector businessmen and the corrupt politicians and bureaucrats who are bribed by them who are disproportionately jailed. Australia’s capitalist ruling class, of course, finds such a system “harsh” and “cruel.” However, from the point of view of the working classes of both China and Australia such a system is exactly what is needed. We should defend it! And we should defend the crackdown on Packer’s and his executives’ illegal activities in China. Let’s weaken the economic forces driving the push out of public housing tenants from Millers Point! Stop the social cleansing of working class people from Sydney CBD! It is rail workers, bus drivers, ferry drivers and their ground staff, cleaners, warehouse workers, chefs, liquor and hospitality workers, construction workers, maintenance workers, fire brigade employees, ambulance staff, sales assistants, IT support staff and other workers who together make the Sydney CBD run. Yet the overwhelming majority of these workers cannot afford to live in the area. Let’s turn this around! Let’s turn the public space that was seized for Packer’s Barangaroo project into a big public housing block for working class people! Let’s fight for a massive increase in public housing throughout Australia! Fittingly, that is exactly what the PRC is doing – having provided around 40 million new public housing dwellings over the last six years.

China’s crackdown on Crown is not only good for the Millers Point public housing struggle, it is also more broadly in the interests of the working class. James Packer is such a powerful – and in Australia seemingly untouchable – capitalist that many here are resigned to him getting his way on everything. The fact that his executives could be called to account in the Peoples Republic of China should be used to give Australian workers confidence that the filthy rich bosses of this and other corporate giants are not invincible. Every fighter against oppression and every Australian trade union activist worth their salt ought to be seizing on this setback for Packer’s Crown to challenge, right here, the greedy exploitation by all the billionaires and the corporations that they own: including the likes of Crown, BHP, Rio Tinto, Visy, Seven West, Westfarmers, Woolworths and the banks. They should be saying to their proud and strong working class base: China is cracking down on corporate greed and corruption – we need to start to do that here too!

Workplace Safety Now Better in China than in Australia

Australian Rulers’ Union Busting Drive against the CFMEU Union Threatens Construction Workers’ Lives

22 November 2016: Remember the days when hardly a fortnight would go by without the Australian media reporting a major work accident in China that killed dozens of workers? To be sure, China is the world’s most populous country – with about 60 times the population of Australia – so everything both bad and good necessarily happens on a huge scale. Furthermore, the mainstream Western media have always been looking for any means to paint a bad picture of the socialistic Peoples Republic of China (PRC). Nevertheless, it is true that China did have poor workplace safety. The country is industrialising and developing so fast that there was a period when the technological level and safety systems simply did not keep up – leading to dangerous workplace environments. Furthermore, the late 1980s, 1990s and first couple of years of this century was a period when China’s private sector expanded in influence relative to the state-owned sector which, nevertheless, to this day still dominates the pillars of the PRC’s economy. But it is in the private sector where workplace safety is at its worst including in the foreign-invested industries owned by Hong Kong, Taiwanese, American, Singaporean, Japanese and Australian bosses.

Workplace Safety Now Better in China than in Australia
Despite technological improvements that improve workplace safety and despite the shift in employment in Australia from heavy industry and manufacturing to less hazardous jobs in the service and IT/digital sectors, reduction in workplace deaths have been relatively modest here. In contrast, socialistic China has dramatically improved workplace safety over the last fifteen years.

Thankfully, all this is becoming in significant part old news. Through a combination of nationalisation of formerly privately owned mines, the closure of smaller, unsafe private-sector mines, a 2008 pro-worker industrial relations law, increased government emphasis on workplace safety and spirited repression of greedy bosses responsible for workplace accidents, the Peoples Republic of China has dramatically reduced deaths from workplace accidents over the last 15 years. China’s workplace safety issue is still serious and, as a gigantic country with often large-size operations, when China does have work accidents they are often on a huge scale. Yet, the PRC’s achievements in improving workplace safety are so dramatic and the failure of greedy Aussie bosses to provide a safe workplace here so harmful that it is now safer to be a worker in China than it is to be one in Australia.

So what are the hard facts on this comparison of workplace safety in Australia and the PRC. There are some complications in comparing statistics because each country lists workplace deaths in different ways. In particular, in China, a death in a traffic accident has long been listed as a ‘workplace death.’ The inclusion of traffic accidents Continue reading Workplace Safety Now Better in China than in Australia

Long Live China’s 1949 Anticapitalist Revolution!

PROTECT THE GREAT BENEFITS FOR WORKERS & THE RURAL MASSES WON THROUGH THE REVOLUTION:
STOP IMPERIALIST FUNDING FOR THOSE NGOs THAT SEEK TO OVERTHROW SOCIALISTIC RULE IN CHINA

6th September 2016: Determined supporters of socialistic rule in China rallied this evening on the steps at the entrance to Sydney Town Hall. In this demonstration called at short notice, participants hailed the gains of China’s 1949 anticapitalist revolution and opposed the U.S. and Australian-backed anti-communist Chinese exile groups seeking to promote capitalist restoration in China.

The 1949 Chinese Revolution was one of the most momentous events in humanity’s entire history. The long-suffering Chinese masses overthrew their exploiters and took power. Tens of millions of downtrodden people participated in this heroic struggle. They achieved victory after a bitter three year civil war. On one side of the war stood the oppressed tenant farmers, workers, working-class women and idealistic students. They were organized by the Communist Party of China (CPC) which was led by Mao Ze Dong. On the other side were the brutal landlords and capitalists. These oppressor classes were served by the Kuomintang (KMT) government of Chiang Kai-Shek. The KMT was heavily armed, trained and advised by the U.S. regime. But still they lost to the Communist-led revolutionaries.

The 1949 anti-capitalist revolution freed the peasants from the tyranny of the landlords, made headway in liberating workers from capitalist exploitation and freed the Chinese people from humiliating subjugation by imperial powers. The revolution greatly uplifted women’s status from the horrific reality they faced under the previous Kuomintang regime – when many women were subjected to forced marriage and the barbaric practice of Continue reading Long Live China’s 1949 Anticapitalist Revolution!

SMASH THE CUTS TO SERVICES WORKING CLASS PEOPLE NEED THE MOST!

Above: China, May 2013: Prospective tenants visit a new public rental housing complex in Shanghai. In the first nine and a half months of 2015, socialistic China had started construction of almost 7 million public housing units. The Chinese government has planned for 18 million public housing dwellings to be built or rebuilt between 2015 and 2017.

STOP THE SELL-OFF OF PUBLIC HOUSING!
MASSIVELY INCREASE PUBLIC HOUSING JUST LIKE SOCIALISTIC CHINA IS DOING!

On 16 July 2015, a speakout rally was held in the multi-racial working class Sydney suburb of Auburn to oppose the cuts by governments of all stripes to public services. The protest was held under the slogans, Smash the Cuts to Services Working Class People Need the Most! Stop the Sell-Off Public Housing. Massively Increase Public Housing – Just Like China is Doing. No to Abbott’s Squeezing of Public Hospitals and Schools. Rollback the Former ALP Government’s Cut to the Sole Parent Payment.

The demonstration was held because the capitalist big-end of town and the governments that serve them are waging all-sided attacks on the services that working class people need the most. These attacks, alongside bosses’ cuts to workers’ conditions, are making life harder and harder for working class people. Whether we are employed workers, unemployed workers, single mothers, pensioners or students, we are all feeling the pinch.

One of the crucial public services that are under attack is public housing. We need public housing because the greedy private sector developers who determine what is built in the private sector know that they can make a lot more money building expensive homes for the wealthy rather than affordable homes for the masses.

Bulli, 11 October 2014: Members of the Illawara-based Public Housing Union and pro-public housing activists from Sydney – including Millers Point residents and Trotskyist Platform supporters – protest the sell-off of yet another public housing dwelling as yuppy real estate agents conducting the sale look on.
Bulli, 11 October 2014: Members of the Illawara-based Public Housing Union and pro-public housing activists from Sydney – including Millers Point residents and Trotskyist Platform supporters – protest the sell-off of yet another public housing dwelling as yuppy real estate agents conducting the sale look on.

So we need low-rent public housing to alleviate this situation. But what are governments doing? The very opposite! From Millers Point and the Rocks in the inner city to Auburn, Bonyrigg and Claymore in western and south-western Sydney to Bellambi and Wollongong in the Illawara, the authorities are selling off or demolishing public Continue reading SMASH THE CUTS TO SERVICES WORKING CLASS PEOPLE NEED THE MOST!

Defend Socialistic China Against Military Intimidation By Capitalist Powers

Down with Capitalist Australia’s Military Build Up!
U.S., Australian Militaries: Stay Out of the South China Sea!

26 February 2016 – In October 2015, the U.S. warship, the USS Lassen destroyer (pictured above) sailed through waters, not far from mainland China, that are claimed by the Peoples Republic of China (PRC) as its territorial waters. This provocative action in the South China Sea was fully backed by the right-wing Australian government and the ALP Opposition. Moreover, yesterday’s Defence White Paper released by the Turnbull government announced a massive military buildup for the Australian Defence Forces (ADF) which the White Paper could not hide was squarely targeted at China. The government “defence” plan announced that the ADF would have its troop numbers boosted to 62,400 in five years. That means that the Australian military as a percentage of the population will be over 60% larger than the PRC’s military which, in contrast, is in the process of reducing troop numbers by 15%.

The White Paper also announced the ADF’s massive expansion of military hardware including the acquisition of 12 new submarines, 9 warships, 12 patrol vessels, 75 joint strike fighters, two fleets of drones and additional helicopters for special forces troops. Excited by this announcement, racist former defence minister in the Abbott government, Kevin Andrews called for Australia to join the U.S. in sending warships into China’s claimed territorial waters in the South China Sea. Yet it is not only hardline right-wingers like Kevin Andrews who are demanding such aggressive actions. Months earlier, Labor shadow defence minister Stephen Conroy started demanding the same thing(5). Meanwhile, Liberal defence minister, Marise Payne yesterday refused to rule out the possibility that the Australian Navy may take such incendiary action in the future. Continue reading Defend Socialistic China Against Military Intimidation By Capitalist Powers

CHINA AND CUBA

CHINA AND CUBA

Chris Slee’s pamphlet is effectively a sequel to the former DSP’s previous pamphlet on China – The Class Nature of the People’s Republic of China.(1) That was largely written by the late DSP leader Doug Lorimer who in 2008 split from the former DSP to help found the former Revolutionary Socialist Party (RSP). As Doug Lorimer was no longer part of the former DSP or the Socialist Alliance, the task of reaffirming SA’s line on China fell to Chris Slee. Despite the splits, both the former RSP (which has now merged into Socialist Alternative) and the Socialist Alliance agree on what they claim is the class nature of the PRC – a “capitalist state”. One might think that socialists in the Asia Pacific region, of which Australia is a part, would have an obligation to politically support and defend a country which, led by a Communist Party, overturned capitalism via a socialist revolution and established a workers’ state. Indeed, this should be elementary for socialists. The only way to wriggle out of such an obligation would be to concoct a theory which posits the supposition that the socialistic state has been transformed into a capitalist one. And this is precisely what they did do. The former DSP invented the theory of capitalist restoration in China and this was formally adopted by them in 1999. The Socialist Alliance, travelling along a similar political trajectory, still adheres to this theory – hence Chris Slee’s pamphlet, released in 2010.

Back and front cover of the DSP’s 1999 document which marked the adoption by this group of their ‘restoration of capitalism in China’ position. This effectively set the line which later the Socialist Alliance & Chris Slee’s pamphlet would follow. The blurb on the back cover states: “...socialists can no longer call for a radical democratic reform of the state but should rather call for its destruction and the creation of a new state, genuinely based on the Chinese workers and poor peasants.” Without leaving a trace of any kind of ambiguity, this is a stark and open call for counterrevolution and the destruction of the PRC!
Back and front cover of the DSP’s 1999 document which marked the adoption by this group of their ‘restoration of capitalism in China’ position. This effectively set the line which later the Socialist Alliance & Chris Slee’s pamphlet would follow. The blurb on the back cover states: “…socialists can no longer call for a radical democratic reform of the state but should rather call for its destruction and the creation of a new state, genuinely based on the Chinese workers and poor peasants.” Without leaving a trace of any kind of ambiguity, this is a stark and open call for counterrevolution and the destruction of the PRC!

 

The DSP has historically not been politically opposed to all workers’ states. Indeed, it was famous for its position of political support for the Cuban revolution and the workers’ state of Cuba. But if leftists politically support a small workers’ state then why not a large one? It is a huge call for Marxists in Australia to call for the overthrow and destruction of the People’s Republic of China when there is no serious analysis that can show that the state of the PRC, which was established by one of the most significant anti-capitalist revolutions in world history, has reverted to a capitalist state. The PRC is a state representing 1.3 billion people, the largest nation on earth. It is threatened militarily on all sides by US imperialism, via South Korea, and recently, via Taiwan, the Philippines and Japan, ostensibly over islands in the South and East China seas. The capitalist Australian government actively builds an anti-PRC campaign as well and has recently approved the installation of a US military base in Darwin which will house 2500 armed US troops – a base clearly set up to intimidate the PRC, if not actually prepare for a “first strike” against it. At all costs, socialists in Australia must avoid dovetailing with the US political and military manoeuvres against Red China. Moreover, Marxists in Australia such as Chris Slee should also explain why the Cuban and Venezuelan governments, to which the Socialist Alliance extend a great deal of political support (although in recent years much more for Venezuela than Cuba) themselves regard the PRC as a socialist state and seek to build political alliances with the PRC on that basis.

Back to index of SOCIALISTIC RULE AND WORKERS’ STRUGGLE IN CHINA

SOCIALISTIC RULE AND WORKERS’ STRUGGLE IN CHINA

SOCIALISTIC RULE AND WORKERS’ STRUGGLE IN CHINA

PDF: Socialistic Rule and Workers Struggle in China 3 MB

Cover: Pupils at Yuanqian Primary School on June 30, 2011 in Lianyungang, Jiangsu Province taking part in celebrations marking the 90th anniversary of the founding of the Communist Party of China.

Cover2

TROTSKYIST PLATFORM ISSN 2201-358X

section headings index
Introduction
China and Cuba
“Bureaucratic Deformations”
Tiananmen Square 1989
The “Overthrow” of the Socialist State
Health Care
Foreign Direct Investment
The Capitalist Drive to War
The State Sector of the PRC
The State Advances, The Private Sector Retreats
The “Commanding Heights”
Percentages, Percentages
Industrial Relations in the PRC
Poverty Reduction
Workers’ Struggle in China
Trade Unions in China
The Foreign Policy of the PRC
The Real Threat of Capitalist Counterrevolution
The Task Ahead
Appendix: Comparison Table between Socialistic China & Capitalist India
References

OCTOBER 1 ANNIVERSARY OF CHINA’S GREAT 1949 REVOLUTION

17 August pro-PRC rally in Hong Kong was attended by over 110,000 people.
17 August pro-PRC rally in Hong Kong was attended by over 110,000 people.

GREETINGS FOR THE OCTOBER 1 ANNIVERSARY OF CHINA’S GREAT 1949 REVOLUTION DOWN WITH YUPPY, ANTI-COMMUNIST HONG KONG PROTESTS

1 October 2014: Today in Hong Kong, the Western media are playing up the anti-PRC, anti-communist protests. The protests are indeed large but the Western media ignored a huge pro-PRC rally in Hong Kong just weeks ago. The main trade union federation, the Hong Kong Federation of Trade Unions, is pro-PRC. The parliamentary party with the biggest vote in Hong Kong is the pro-PRC, Democratic Alliance for the Betterment of Hong Kong. It was formed by pro-communist people and leaders of the Hong Kong Federation of Trade Unions.

Hong Kong was stolen from China by the British in the 1840s as part of the Treaty of Nanking. That followed China’s defeat in the Opium War. The humiliating treaty for China allowed Westerners in China to have “extraterritoriality” meaning that they were not subject to Chinese laws.

Under British rule, Hong Kong people had no democracy whatsoever. They were simply subjects of Britain ruled by the Continue reading OCTOBER 1 ANNIVERSARY OF CHINA’S GREAT 1949 REVOLUTION