Category Archives: China

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

Rally: Just Like What China is Doing, Massively Increase Public Housing

Rents are rising. Wages are too low. And bosses are sacking workers. With rents so high, millions are struggling to make ends meet. The working poor and especially their children are suffering! People try to get lower rents by joining the public housing waiting list. But governments are selling off public housing! People are driven into ruin paying high rents while waiting up to twenty years on the public housing list! And it’s gotten so hard now to even get on this list that even full-time workers on the minimum wage aren’t eligible for it.

Yet while all this is happening, governments are letting big business owners like Gina Rinehart, Andrew Forrest, Frank Lowy and Richard Pratt get away with making billions by doing nothing other than exploiting other people’s labour. We need to fight to ensure that the wealth of this country is used to fund the public housing that we so badly need (and for properly funded public hospitals and schools). So we must rally to demand:

JUST LIKE WHAT CHINA IS DOING
MASSIVELY INCREASE
PUBLIC HOUSING
3:30PM SATURDAY MAY 4
Corner of Rawson St and Northumberland Rd, Auburn
(Near the Northern Exit of Auburn Railway Station) Continue reading Rally: Just Like What China is Doing, Massively Increase Public Housing

MASSIVELY INCREASE PUBLIC HOUSING! SOCIALISTIC CHINA IS DOING THAT SO LET’S FIGHT FOR THE SAME HERE!

One of China’s many new public housing complexes. Last year China started construction of over ten million new public housing dwellings.

MASSIVELY INCREASE PUBLIC HOUSING!
SOCIALISTIC CHINA IS DOING THAT
SO LET’S FIGHT FOR THE SAME HERE!

5 June 2012 – More and more of Australia’s poor are skipping meals because they can’t afford to pay for the food. In an annual survey by the Salvation Army of those who have sought its help, more than half the respondents admitted to skipping meals in order to pay for other necessities (ABC News Website, 16 May.) Other startling findings were that a third of those surveyed could not afford heating and a third could not afford medicine prescribed by their doctor.

Charities are reporting that an increasing number of people are seeking their help. Low-income people are being crippled by punishing rents and utility charges. And job slashing by business bosses are hitting working class people hard. The official spin about the supposedly low unemployment rate masks the reality that about 600,000 people are officially unemployed in this country. However, perhaps an even greater number of people are not recorded in official unemployment figures only because long-term lack of success in finding a job has discouraged them from looking for work or because they are a single parent unable to find affordable childcare. Meanwhile, one and a half million people are not able to get as many hours of work as they want to. They are not counted in the deceitful, official unemployment figures as those figures will not classify a person as unemployed if they obtain as little as one hour of work in a week. The drive of the business owners to maximize profits is forcing more and more workers into tenuous, low-wage casual jobs. That is why charities are reporting that an increasing proportion of those seeking help are not unemployed people but the working poor. These are typically people with young children who just can’t get enough hours in part-time jobs to get by or can’t make ends meet on the paltry minimum wage. Continue reading MASSIVELY INCREASE PUBLIC HOUSING! SOCIALISTIC CHINA IS DOING THAT SO LET’S FIGHT FOR THE SAME HERE!

What Attitude Should Marxists Take to Proposals for Chinese Investment in Australia?

Part of a massive oil refinery complex in Kwinana, Western Australia. The refinery is owned by a foreign corporation.  Chinese owned? Wrong! The refinery is owned by British-based BP. Latest available figures show that Britain’s total stock of foreign investment in Australia is more than 25 times that from Mainland China.
Part of a massive oil refinery complex in Kwinana, Western Australia. The refinery is owned by a foreign corporation. Chinese owned? Wrong! The refinery is owned by British-based BP. Latest available figures show that Britain’s total stock of foreign investment in Australia is more than 25 times that from Mainland China.

What Attitude Should Marxists Take to Proposals for Chinese Investment in Australia?

Takeovers, mergers and acquisitions of minority stakes are all normal parts of the corporate scene in capitalist Australia. Except, that is, when the companies investing happen to be state-owned enterprises from the Peoples Republic of China – in which case all hell breaks out. Proposals by PRC state firms to invest in Australian companies have caused a furore. Right-wing politicians, media commentators and some sections of the corporate elite have rabidly opposed such moves. As a result some major PRC investment plans have been stymied. Continue reading What Attitude Should Marxists Take to Proposals for Chinese Investment in Australia?

Warmongering Bigot Spearheads Falun Gong Anti-Communist Crusade

February 2008: During last September’s APEC summit, thousands of anti-war youth and leftists participated in demonstrations. The actions centred on opposition to the invasion of Iraq and, to a much lesser extent, Afghanistan. The protesters were a diverse bunch but many saw themselves as anti-capitalist. But while these actions were occurring there were also other rallies taking place in Sydney with a quite different purpose. Right-wing forces had seized on the APEC visits of the leaders of China and Vietnam to hold a series of anti-communist events.

These anti-communist actions mainly consisted of people from the right-wing portions of the Chinese and Vietnamese communities. They held a rally at Sydney’s Belmore Park on September 8 around the same time that the anti-war APEC protest was marching from Town Hall to Hyde Park. The main Vietnamese group involved is called the Vietnamese Community of Australia. This organisation is dominated by those who were directly involved in, or supported, the blood-soaked former U.S. puppet regime of South Vietnam and who fled when the Vietnamese masses liberated the country from imperialism and capitalism. They long to reverse the result of the Vietnamese Revolution and campaign here in Australia to have the defunct flag of the former South Vietnamese regime flown at official events. Similarly, the Chinese groups involved in the anti-communist actions represent the interests of those descendants of the pre-1949 Chinese exploiting classes that still want to be able to rule China like their ancestors once did. Also central to the whole project are privileged elements within the Chinese community that have ties to the big business ruling elites in the likes of Taiwan, Hong Kong and Singapore. These forces know that, while Beijing has allowed capitalism to make significant inroads into China, capitalists do not have a free hand there as they are constrained by a workers state that is based on the still existing communal ownership of the majority of China’s key industries, banks, infrastructure and land.

The Chinese political groups that have been orchestrating the local campaign against the Peoples Republic of China (PRC) include “Free China,” Falun Gong and the Federation of Democratic China. These organizations are despised by the pro-Peoples Republic and working class sections of the Australian Chinese community. Particularly hated is the Falun Gong, the most active anti-China, anti-communist force. “All bullshit,” angrily says a Chinese man passing a Falun Gong poster. Indeed! Falun Gong specialize in making lurid claims that their members are being killed in China to “harvest organs.”

So what is this Falun Gong. They pose as a spiritual group that is supposedly being persecuted in the PRC because of its harmless religious views. But they are no more a simple religious group than are the actively right-wing Christian political forces in America. To get a sense of what these and other anti-PRC organizations are about you only need to look at who their backers are in the West. One of the most active supporters of the “rights” of Falun Gong is one David Kilgour. Kilgour is a right-wing ex-member of the Canadian parliament and the former Canadian Secretary for the Asia-Pacific. He is the co-author of the “Report into allegations of organ harvesting of Falun Gong practitioners in China,” a work which follows in the long tradition of “disinformation” practiced by North American imperialism.

Kilgour was the featured “honourable” speaker at the anti-PRC, anti-Vietnam events that were held in Sydney by Falun Gong and co. during APEC week. Let’s take a look more closely at who this David Kilgour is. One of Kilgour’s main agendas is to promote the imperialist intervention in Afghanistan in the face of widespread opposition to it in Canada. “Canada Should Stay in Afghanistan, Despite the Costs,” was the headline of an article he wrote in the Embassy Magazine (Ottawa) on July 4 last year. He is also a staunch opponent of the rights of gay and lesbian people. Indeed, Kilgour even left the Canadian Liberal party in 2005 because he was too bigoted to stomach a bill that they introduced giving certain rights to same-sex couples. In his explanation “Why I Left the Party” (National Post, 19 April 2005), Kilgour concludes that “the government’s same-sex marriage bill (C-38) represents a clear departure from the Liberal’s successful tradition of moderate liberalism …. “

Kilgour’s political positions bring him into a natural alliance with Falun Gong. From its main book of “law,” Zhuan Falun, onwards Falun Gong too promotes bigoted “values.” The group raves that the Communist Party government in China has been soft on homosexuality. In the Zhuan Falun Fajie (1997), Falun Gong founder and leader Li Hongzhi who the group claims has supernatural powers writes that: “All varieties of messed up and depraved things are taking place in China and abroad: homosexuality, ‘sexual liberation,’ drugs, gangs – everything.” Li Hongzhi also advocates inflammatory ideas on racial “purity.” He describes children born of mixed-race relationships as “defective persons” and when he toured Australia in 1996 he even claimed in a speech in Sydney that heaven itself is segregated: “the yellow people, the white people, and the black people have the corresponding races in heaven. Anybody who does not belong to his race will not be cared for. This is the truth, and it is not that I’m making up something here. What I am telling everyone are heavenly secrets.”

Like Kilgour, Falun Gong also champions the invasion of Afghanistan. For example, when Australian troops departed for Afghanistan’s Oruzgan Province last March, the Falun Gong newspaper Epoch Times reverberated the lying imperialist pronouncements that the military’s role would be to “aid in rebuilding war-torn settlements.” It declared that “Australian soldiers have been part of an international coalition against terrorism in Afghanistan since October 2001” (Epoch Timeswebsite, 6 March 2007, by Epoch Times Sydney staff). Similarly, the editorial line of Falun Gong publications has been to support the U.S.-led occupation forces in Iraq. Following the second anniversary of the Iraq takeover, a featured Special to the Epoch Times (website, 4 May 2005) piece titled, “Taking Stock Two Years After Iraq’s Liberation” [!] expressed the hope that the occupation forces “will finally win the central front of the global war against the terrorists.”

Not surprisingly, then, Falun Gong has won solidarity from the U.S. Congress and from none other than the chief imperialist “human rights” advocate himself, George Bush. The group is also known to get support from U.S. intelligence agencies. The organisation is certainly well supplied financially – putting out free newspapers and masses of glossy colour posters, hosting flashy entertainment shows and even sponsoring major Chinese New Year events in Sydney.

It is not, however, simply the ultra-conservative social “values” of Falun Gong that attract support from U.S. and Canadian ruling class politicians. Mostly, it is the fact that the group is politically committed to the destruction of Communist power, in any form, in China. For the purposes of fostering capitalist counterrevolution in the likes of China and Cuba the Western powers utilize a range of forces. Earlier, in order to undermine the USSR and the (deformed) workers states in Eastern Europe, the imperialists had supported a range of “dissident” forces in those countries from monarchists and fascists to liberal “democrats” to bogus “labour rights” advocates and social democrats. Today, Washington and co. do not seriously think that right-wing crackpots like Falun Gong could take power in China. But they do know that the campaigns that this group wages can injure the Peoples Republic. Falun Gong’s incessant slanders against the PRC gives those Western middle class elements looking for a rationale to hate Red China some “valid reasons” for doing so and furthermore deters would-be leftist supporters of the PRC from following through on their political impulses.

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The U.S. and its allies hope that the weight of anti-PRC sentiments in the West will have a bearing on the outcome of factional struggles within China itself where the situation is precariously balanced between forces seeking to maintain the PRC’s socialist-type foundations and elements pushing towards capitalist restoration. Backing anti-Red China groups is, of course, just one aspect of a multi-faceted strategy that the imperialist ruling classes are using to try and weaken Chinese pro-socialist forces. So what are some of the other aspects? Well, for one there is the constant demand by U.S. government officials and visiting businessmen for the PRC to “liberalise” and privatise its majority state-owned banking system. Then there is the behind-the-scenes support that Western capitalist politicians are giving to campaigns to boycott the Beijing Olympics. And then there are the brazen efforts (mostly unsuccessful) by Western corporate organisations like the American Chamber of Commerce in Shanghai to scuttle China’s new pro-worker labour law, a law that cracks down on abuses of workers rights, especially in the private sector.Don’t Buy the Bush/Cheney/Falun Gong Right-Wing Agenda Against Red China!It is hardly just U.S. and Canadian conservative forces that are supporting the anti-communist crusade against the PRC. Australian politicians like former Victorian Liberal Party parliamentarian Victor Perton have also been very active in supporting the likes of Falun Gong. But it is not just right-wing politicians who are involved. Some Labor Party figures, the Democrats and the Greens Kerry Nettle and Bob Brown are also hard-core supporters of anti-communist Chinese exile groups. The China policies of the latter group of politicians reflect the prejudices of pseudo-progressive layers of the Aussie middle class. They are comfortable layers living in a feel-good environment where people are at pains to flaunt how broad-minded they are but in practice are reluctant to challenge the essential features of the current Australian political system. The people in these social strata hate China because they hate to acknowledge that workers states actually exist. No, to accept that would rob these “socially conscious” people of their favourite excuse for refusing to break out of their cosy political habitat:  that “there is no other choice” but to “very grudgingly” accept Australia’s capitalist order.

Regrettably, some of the far-left here have also lined up behind the anti-PRC, anti-communist agenda. The Solidarity and Socialist Alternative groups in particular were supportive of the anti-PRC campaigns during APEC and tried to meld them in with the main, leftist anti-war APEC protests. Why did they do this? Why would leftists who have been building demonstrations against the Iraq and Afghanistan invasions and who are actively against homophobia and racism end up being staunch defenders of a group like Falun Gong that supports the imperialist occupations, that equates homosexuality with murder and whose leader advocates racial segregation? Of course, these anti-PRC leftists would claim that they are merely standing up for “human rights” and “democracy.” But these same socialist groups correctly expose imperialist-backed “pro-democracy” forces in Iraq and Afghanistan so why line up behind such forces in China – especially when these Chinese pro-Western organisations have an agenda so heavily focussed against communism? The unfortunate answer to that question is that “socialist” hostility to the PRC is a form of capitulation to middle class, small-l liberal views. You see, socialists who are overly worried that their less radical friends and potential recruits think them too left-wing can say: “Look, we are not only against capitalism here but we are against the Communist Party dictatorship in China too.”

The all too convenient “theoretical justification” that some leftists use for an anti-PRC stance is that China is simply “another capitalist country.” One of the harmful effects of this false analysis is that it paints a very demoralising picture of the world to anti-capitalist activists. It makes out that in no country in the world have the toiling masses been sufficiently effective to retain state power. All the leaders of the APEC countries are the same, capitalism is all powerful. Now, if that were actually true then of course we would have to face that reality squarely. But why write off 20% of the world’s population (ie. in China) as being under capitalist rule when the imperialists themselves realise that this is a major part of the world that they do not actually have under their thumb? Indeed, the fact that China is not part of the imperialist fold gives the oppressed of the world a breathing space in which to organise resistance. It is, for example, a key reason why, to date, Iran has not been massively bombed. For in contrast to other powers like Britain, Germany, Japan and Canada, China has to some degree obstructed the U.S. and Israel’s war drive against Iran. Indeed, one of the demands that U.S. officials were making around APEC is that the PRC be more aggressive towards Iran (Associated Press, 6 September 2007.)

In fact, if you look behind all the diplomatic niceties of the APEC conference, you will see that the events actually showed that APEC is not simply one seamless bloc of 21 leaders with all the same agenda. Right on the very Saturday morning of APEC, Bush, Japanese Prime Minister Shinzo Abe and former Australian PM John Howard made a swipe against China. The three government heads held a meeting to strengthen their countries’ trilateral security arrangements – arrangements that are widely known to be directed against the PRC and North Korea. The Australian government’s participation in that provocative trilateral summit showed its true agenda with respect to the PRC. Aware that China’s massive mineral purchases are holding up this country’s economy, Canberra is careful to maintain the appearance of friendly relations with Beijing. But the Murdoch media and some members of the Australian foreign policy bureaucracy have been pushing to adopt a more openly hard line against the PRC. So has the U.S. government. When Dick Cheney visited Australia last February his main aim was not only to reconfirm Howard’s support for the Iraq occupation but to also strengthen U.S./Australia cooperation against China. Washington’s policy continued through APEC as well. On the Wednesday before APEC, Bush arrogantly berated the PRC over its financial policy and over “dissidents.” Washington was determined to pursue this anti-PRC agenda no matter how much the Chinese leadership adhered to its (ultimately futile) policy of building friendly relations with capitalist governments. Bush continued with his anti-PRC attacks on the Thursday before APEC when he held a Sydney meeting with Chinese leader Hu Jintao. The Commander in Chief of the killing of tens of thousands of Iraqis – and of the Guantanamo Bay concentration camp – criticised the PRC over “human rights.”  

Those who oppose imperialism ought to stand against the imperialists’ hounding of the Chinese workers state – no matter how far China may currently be from a “model socialist” society. Fortunately, there are already sections of the Australian left that do in some way stand against the anti-PRC, anti-communist crusade. For example, in an article written soon after APEC by its General Secretary, Peter Symon, the Communist Party of Australia (CPA) correctly stated that:

“Many [Australian people] have been brought up on the White Australia policy and respond to the anti-China media campaigns and the policy of excluding refugees which clearly has a racist basis. 
Some of the left echo the media hype and keep on stoking the campaigns of Tibetan and Taiwanese independence. These are already lost causes and have no basis in historical fact. Then there is the religious Falun Gong campaign which is quite active in Australia. It is promoted by the political right-wing in a number of countries and is nothing more than an anti-communist campaign parading in a religious garb. 
There are quite a few on the left who are also caught up in the media campaign  which asserts that China is ‘going back to capitalism’. They don’t even ask themselves the question: why should the media object to China going back to capitalism if that were really true?”

Guardian, 12 September 2007

At the big September 8 anti-war APEC rally itself, Trotskyist Platform (TP) carried a placard that appealed: “Fellow Anti-Capitalists: Do NOT buy the Dick Cheney/Bush/Falun Gong Right-Wing Agenda Against Red China – Defend the World’s Largest Workers State!”

Of course, among the groups that do oppose anti-communist attacks against the PRC there are many differences in viewpoint. For example, TP does not subscribe to the CPA’s beliefs that it is possible that the foreign policies in the world could ever be guided by the classless doctrine of “non-interference in the affairs of another country.” The reality in this globalised world is that all countries necessarily affect what happens in other countries. The actual question is not interference or “non interference” but this: will the imperialist countries be able to get away with subjugating poorer countries and fostering counterrevolution in the non-capitalist states or will it be the workers movements of different countries and the workers states that are able to gain the supremacy in the global class struggle by effectively giving solidarity to the toilers’ struggles in other lands. In other words, the question is not “interference” or “non-interference” but capitalism or socialism.

Nevertheless, despite these different stances amongst the communist left, there exists a basis here for building a united-front campaign to solidarise with China against capitalist threats. Such a campaign should include the CPA, Trotskyist Platform and pro-communist immigrant groups and would seek to broaden out to win a section of the Cuba solidarity movement as well as Marxist activists within the union movement. To build the movement will take much patient and persistent work. But the need for such a campaign is critical. As a TP leaflet distributed at the APEC anti-war protests stressed: “We must never allow the allies of imperialism to destroy the anti-capitalist revolutions in China and Vietnam! ♦

Greedy Privatisation Bid Smashed in China

Private Equity Executives Walk Away Empty Handed

Greedy Privatisation Bid Smashed in China

August 7, 2008: Zero. Absolute zilch. That’s what big time private equity group Carlyle ended up getting when they attempted to take over a state-owned Chinese manufacturer. The final defeat for the U.S.-based Carlyle Group was announced on July 23. Carlyle and Chinese state-owned Xugong Construction Machinery announced that the original takeover deal signed in October 2005 had now expired. China’s Communist Party regulators had rejected the sell-off.

The three-year Carlyle-Xugong saga was a hot issue in the Peoples Republic of China (PRC.) Xugong is China’s biggest manufacturer of construction machinery although by the standards of the PRC’s state-owned enterprises it is not big: it is not one of the 160 or so giants controlled directly by the Beijing national government but is owned by the local government of Xuzhou city in Jiangsu province. But had Carlyle succeeded in its grab for Xugong it would have been the biggest foreign takeover of an existing Chinese state-owned enterprise (most of the foreign investment into China has gone into new factories or into joint ventures with state firms.) So when it was announced that Carlyle were to takeover 85% of Xugong it unleashed a storm of opposition. The opposition to the sell-off was led by left-wing academics, staunch elements within the Communist Party of China (CPC) and Chinese state media. They protested that too many state-owned firms were being sold off.

Before long what had seemed like a formality became tied up with regulatory authorities. The fate of Xugong became an issue far, far larger than the enterprise itself. Opposition to its sell-off became a symbol of resistance to erosion of the socialistic state-owned core of the PRC’s economy. But the capitalist side mobilized too. The finance pages of Western mainstream media sneered at the delay in approving Carlyle’s bid. The U.S. government blatantly interfered and demanded that the privatization go ahead. Then in July 2006, Carlyle, working with the American Chamber of Commerce in Shanghai (which later became notorious for trying to scuttle China’s new pro-worker Labour Law), hosted a visit and advocacy speech by Colin Powell. However, as we noted last year in Trotskyist Platform Issue #8, “Powell would ultimately find that getting PRC authorities to approve the imperialist takeover of state-owned Xugong was not as easy as getting the United Nations to endorse the ‘weapons of mass destruction’ pretext for the imperialist takeover of Iraq!”

There was animated debate within the PRC authorities themselves over Xugong. Reports circulated of deadlock within the Ministry of Commerce over what to do about the issue. In 2006, senior PRC officials held an unprecedented meeting just to deal with the question. The Xugong dispute reflected a broader political struggle occurring within the PRC. On the one side stand those who want to strengthen the PRC’s foundations of socialist-type state ownership of key economic sectors. On the opposite side are rightist elements who want to facilitate greater – and some secretly even wanting total – capitalist economic penetration. In the middle of these opposites are various political shadings that represent the stance of the current PRC leadership. This official path has as its final declared destination socialism and seeks to maintain state control of key economic sectors but at the same time continues with the post-1978 “reform and opening up” policies that have led to a degree of capitalist encroachment and inequality. The problem with this current course is that in the long term it is not sustainable. To be realistic there are in the end only two ways that China can go. In one variant, the still tenuously riding layer of capitalists spawned by post-1978 reforms will, with the backing of Western and Taiwanese capitalists and in alliance with right-wing sections of the officialdom, manipulate mass grievances to smash pro-communist rule and grab political power for themselves. In the other variant, the Chinese toilers, emboldened by the successes of their socialistic development but enraged by the inequalities caused by pro-market reforms, move to complete their class struggle victory gained in the 1949 Revolution. They defeat capitalist restorationist forces within China and proudly advocate socialist triumphs internationally. The workers of the world need this second variant to emerge. But if this is to occur then it will require the international working classes to do all in their power to stop the Western and other capitalists from fomenting capitalist counterrevolution in China.

On 13 November 2006 there was an act of solidarity in Sydney with the pro-communist opposition to the Xugong privatization. A small group of protesters rallied outside Carlyle’s Australian headquarters under the slogans “Stop the Carlyle Group Profiteers from Grabbing Control of Chinese State-Owned Firm Xugong Machinery! Defend State Ownership of Major Industry and Banks in Red China.” The call for the demonstration which was distributed by Trotskyist Platform supporters insisted that: “It took the Heroic 1949 Revolution to Achieve Nationalisation of Chinese Industry – Let’s Protect this Anti-Capitalist Triumph! Keep Carlyle and Other Capitalist Exploiters Out! …. The capitalist parasites should get nothing.”

One Country in The World Where The Carlyle Group Can’t Run Roughshod

In October 2006 it became public that Chinese regulators had quashed Carlyle’s full-scale takeover bid. A new scheme had emerged for 50-50 ownership. On the eve of a trip to China by U.S. Commerce Secretary Carlos Gutierrez in November 2006 Chinese media announced that the new arrangement had been approved by China’s state assets watchdog. But two days later the same media reported that the state assets body was still scrutinizing even the revised Carlyle 50% bid. Then in January 2007, with the Carlyle-Xugong issue in mind, the Chinese government released a circular prescribing that the state should maintain its absolute control over enterprises in key industries. A couple of months later PRC authorities knocked back Carlyle’s revised bid and the private equity capitalists settled for a minority 45% stake. The U.S. capitalist rulers were furious that the full-scale privatisation had failed. In a March 29 speech in Beijing U.S. Commerce Undersecretary Frank Lavin arrogantly ranted that “China needs a hundred Carlyles to come in and buy a hundred Xugongs.” His heavy-handed behaviour was to no avail. By July of this year Carlyle went from losing on points to being totally knocked out. The 85% that had turned to 50% and then 45% went to … a big fat 0 %.

It turns out that Xugong was not the only Chinese state company that Carlyle could not get its hands on. The PRC’s Communist Party authorities have knocked back Carlyle from claiming even minority holdings in other state firms. In early July Carlyle failed to grab a stake in state-owned chemical producer Shandong Haihua. The private equity high-riders have also been locked out of investments in two state-owned banks, Guangdong Development Bank and Chonqing City Commercial Bank. By contrast, Carlyle and other similar companies have been allowed to grab many stakes in Chinese privately owned firms. That is not so bad. If an enterprise is to be run by capitalists it is a secondary consideration which lot of profiteers run them; and in any case foreign-owned ones like Carlyle may be easier to squeeze out in the future than domestic Chinese ones.

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Xugong Victory: A Good Step Forward But A Long March Ahead

The defeat of the Xugong privatization attempt was certainly a victory for China’s masses. It is the continued public ownership of key economic sectors in China (including major banks, all agricultural land, communications, steel, oil, aluminium, automotive, aircraft manufacturing, shipbuilding and transportation) that has enabled the PRC to pull hundreds of millions of its people out of poverty in the last 59 years. In the PRC the socialistic state-owned industries not only grant their employees higher wages and better conditions than do China’s privately-owned firms but they are able to be steered to meet broader social goals – goals that in a private company would clash with the capitalist imperative of higher profit at all cost. So PRC public firms are often directed towards meeting targets in hiring of disabled people, development of poorer regions, relieving of unemployment and opening up of opportunities for women to reach high positions. In response to the devastating May 12 earthquake in Sichuan, PRC state-owned enterprises were at the forefront of relief and reconstruction efforts. Major state-owned steelmakers like Boasteel and Angang Steel stepped up production to ensure that there would be adequate steel supply to build 1 million movable houses for those left homeless by the quake. Of course, to constrain PRC public firms to act as truly socialistic enterprises is a political struggle in itself. Chinese state enterprise managers are often tempted to want to act like their counterparts in capitalist firms. Mass participation by elected worker representatives both from within and from outside a particular enterprise must be asserted to ensure the success of anti-corruption drives, to increase equality within the firm and to ensure that employees genuinely understand that the workers state’s enterprise really does belong to them.

Beijing to Tianjin Intercity service. This, the world’s fastest passenger service, uses trains built by a Chinese state-owned enterprise, CNR Tangshan Railway Vehicle Co.

Despite the Xugong victory, the danger of erosion of state ownership over the Chinese economy has not been averted. It is unclear whether the relative weight of the public ownership in the Chinese economy has increased or decreased in the last few years. Certainly, the speed of privatization that was cranked up in the late 1990s has slowed down. Furthermore, in the last three or four years the biggest state-owned enterprises have grown rapidly. Indeed, in some sectors there has even been a defacto partial renationalization. For example, in the last three years many, terribly unsafe, privately-owned coal mines have been closed while government funding for the safer, big state-owned mines has increased. But at the same there has been some whittling away of state ownership in a range of big state-owned enterprises through sell-offs of minority stakes to private holders. And it is planned that a minority (some 20%) of the Agricultural Bank of China – one of China’s “Big Four” state banks – will be privatized. The presence of private part-owners, motivated as they are by personal profit, are a pressure on state companies to veer away from their social goals. For example, could you imagine what the minority capitalist stakeholders (which include some big foreign banks) in Chinese state banks were saying when they heard that the banks would be cancelling the requirement to repay loans of those affected by the Sichuan earthquake: they would have been screaming!

The mooted partial sell-off of the Agricultural Bank of China and other part-privatisations must be stopped. The defeat of Carlyle’s takeover of state-owned Xugong should be used to embolden the fight to extend the PRC public sector. One factor influencing this struggle will be the fact that while Red China’s economy continues to boom, similarly populous countries that are capitalist like Indonesia and India are having their masses hit with unbearable rice and grain price increases and the U.S. is verging on recession. That makes it even less palatable when U.S. capitalist officials lecture that “China needs a hundred Carlyles to come in and buy a hundred Xugongs.” Another factor is that owners of private companies in China (which are concentrated in the light manufacturing export sector) are being squeezed by the PRC’s new pro-worker, Labour Law. With the help of this law and more aggressive state support for trade unions, workers in the private sector have recently been able to achieve rapid wage rises. Many sweatshop private firms are as a result closing down. It has been estimated that by the end of this year, up to 7,000 factories owned by Hong Kong capitalists in mainland China will have been closed. The state should take over these closing plants, retool them and consolidate them into larger more efficient operations. Existing public firms should in the meantime increase hiring to make up for lost jobs.

We should never forget that the struggle over ownership systems of the economy cannot be separated from the question of power: from the question of which class rules. To maintain the pre-eminence of collectivised ownership of key sectors requires maintaining the PRC workers state. On the other hand those who want to bring back capitalism to all of China will have to smash the existing political regime along the way. Capitalist forces in China certainly understand this. They are preparing their future open bid for power by pushing now for greater representation for capitalists in political bodies. They do this by playing victim and having a big sob about how private bosses are “unfairly” despised in PRC society. These capitalist restorationists, some of whom are in right-wing factions of the CPC and some outside the party, often promote their goals with calls for greater political “pluralism” in China. They advocate more influence for the All China Federation of Industry and Commerce (an officially welcomed body of private bosses.) They also “advise” that there should be more leading posts granted to the smaller non-communist parties that are part of the CPC-led governing coalition in China. Within some of these non-communist parties, capitalist elements have a proportionately much greater representation than they do in the CPC.

All these counterrevolutionary methods are of a piece with the Western imperialists’ demands for “human rights” in China. These demands have reached a crescendo in the lead up to the Beijing Olympics. But the imperialist concerns for the “human rights” of anti-communist forces in China can be compared to a capitalist boss’s concern for the “rights” of scabs that are firmly stopped by striking workers. Workers in the West should reply with a concern for the PRC that is equivalent to the solidarity that proud unionists show for a strike by their fellow workers. The 1949 creation of a state in China that is based on a public economy is a great strike for all the workers of the world. State ownership of an enterprise in a workers state means the collective ownership of that enterprise by all the people in that country. It is the basis on which a more humane, egalitarian future can be won. It is a future worth fighting for. Let us be inspired by the political defeat of the private equity bid for state-owned Xugong.

Why White, Middle Class Soft-Lefts Don’t Like Red China

The following is an excerpt from the 3 August 2007 article titled, “China: Struggle Between Pro-Communist and Capitalist Forces Heats Up,” that appeared in Issue 8 of Trotskyist Platform.

The article provides important analysis as to why left-liberals and social-democrats in imperialist countries like Australia can be rabidly hostile to the socialistic Peoples Republic of China.

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Why White, Middle Class Soft-Lefts Don’t Like Red China

… it is important to point out that people’s attitude to Red China varies according to where in the world they live. In many Third World countries, especially in Africa, there is quite some sympathy for the PRC. China is looked up to as a country that has freed itself from the subjugation by colonial powers that people in these countries still suffer under. And the PRC is respected as a state that has lifted hundreds of millions of people out of terrible poverty. But in imperialist Australia, it is true that public opinion can be quite anti-China. Such feelings are of course not uniform. Many Australians who are able to afford to travel to China, find that despite all the prejudices that they went with, the real China does not quite match the negative picture painted by the mainstream media. And local tertiary students who have friends that are overseas Chinese students find that their Chinese friends do not at all act like they are ground down victims of the supposedly bleak, totalitarian society that Falun Gong would have you believe exists in the PRC. However, attitudes to China in Australia are haunted by that big evil spirit that hangs over this country: White Australia fears of big Asian countries. Sometimes these fears are openly racist. At other times they take on a “nice”, liberal-version of white supremacy under which the non-white Asian masses are to be loved … as long as they are not organised in a powerful and successful country like the PRC, in which case they are a threat to Australian values. In this worldview, it is the mission of Australian “democracy” (which is really only a democracy for the capitalists) to save the Asian masses from the morally inferior regimes in their own countries.

Workers in Australia are of course influenced by the anti-PRC stance of the current pro-ALP leadership of the workers movement. The strongest anti-PRC views in this country however come from embittered descendants of expatriate Chinese capitalists/landlords, from right-wing conservatives and also from the left-liberal sections of the middle class. It is worth examining in greater detail here the latter category of people. Typically, they are well educated, potentially upwardly mobile, of Anglo-Celtic background and are Greens or Democrats voting. To understand where these people are coming from in their anti-China, anti-communist hostility, one needs to understand the nature of the middle class in wealthy imperialist Australia. The middle class or as Marxists define it, the petit bourgeoisie are a very broad layer (including the self-employed and non-boss professionals) who are neither exploiters of labour nor people whose labour is directly exploited by capitalists. The left-leaning layers of the middle class are people rightly angered by the injustices and irrationality of capitalism. But the problem with this section of the population is that because they do not directly experience exploitation of their labour by business owners in the way that workers do, they tend to downplay the centrality of the question of which class owns the means of production and the question of which class rules. Instead, they become obsessed with questions of form; like questions of constitution, legal rights and the issue of how democratic the organisation of the state is. Those questions are of course important. But they are subordinate to the question of which class the laws and any “democracy” serves. That is lost on the middle class. They see a big train whizzing close past and that scares them. They keenly observe the shape of the locomotive but forget to notice what the train is actually carrying … or which direction it is headed in. When the liberal petit bourgeois looks at the PRC they see only the suppression of “rights,” unable to distinguish between harmful bureaucratism on the one hand and the necessary suppression of capitalist “free” holding of property “rights.” They are not able to understand that the PRC state, in a rather deformed way to be sure, still defends an ownership system that favours working class people.

The above explanation actually puts the best possible face on Aussie middle class hostility to Red China. But there is another very different side to it. Many in the Australian middle class dream of making it into the upper class, if not as direct capitalist owners, then as henchmen for the capitalists, like managers and high-level bureaucrats. And many a middle-class leftist who has not sufficiently gone over to the side of the working class, quietly prepares a Plan B course to becoming a ruling class high flier. While at a leftist demonstration they sneak a quick peek at their watch and wonder if they should have been spending all that time they were at the rally instead pursuing their own capitalist ambitions. At the same time, more affluent middle class people sometimes have a relative or friend who is part of the capitalist class. For all these reasons, the liberal petit bourgeois don’t like it when a workers state (even a healthy one) takes measures to suppress the capitalists’ freedom to operate. In the case of China, they scream with indignation, for example at the PRC’s attempts to squeeze capitalist Taiwan, that base for counterrevolution that was created when the former exploiting class took over the island after being kicked out of power in the rest of China in 1949.

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The middle class liberal is also prejudiced against the PRC because he or she is in general skeptical that communism is possible. In part this is a wilful cynicism. Someone who wants to become an exploiter likes to soothe their conscience with the thought that there can be no other system but capitalism. But sometimes middle class doubts about communism are genuinely felt. Someone who has not known anything but the cutthroat arena of small-business competition and the back stabbing world of ladder-climbing professionals is of course skeptical about a system that seeks to unite people’s labour in service for the common good. But working-class people, especially those who are part of a well-unionised workplace, have a different experience. When workers sacrifice their own career prospects to collectively defend from the boss a victimised worker or when they risk the sack to go on strike for the common good of workers they are in a way unwittingly rehearsing for the future grand act of communism. To be sure, workers today are themselves influenced by the prejudices of the middle class and by the overall values of capitalist society. But their own experiences make them open to being eventually won to supporting the struggle for a communist future. And of course, unlike the better-off sections of the middle class in imperialist Australia, workers ultimately have no choice but to fight for socialism. That is why the main base in the fight for communism and the main foundation of support in the West for the Chinese and Cuban workers states must be built within the working class. And when the working class acts as a powerful pro-socialist force they will draw behind it not only the other sections of the oppressed but a chunk of the middle classes as well.