The Gains and Legacy of Maoism and the State Role in the Chinese Economy Today

TRASH: Central Planning has done no favors for the Chinese economy and that is why everyone was making The Great Leap Forward to British Hong Kong or eating their children during the famine. Mao was both an idiot and a sadistic tyrant.

True enough that China has found a form of government binding Soviet-blood Manchurian Eurasians, Uighur Turks and Tibet people into a large infrastructure.

Han Chinese seem to have born the brunt of their leaders incompetent Central Planning, Great Leaps Forward, intellectual purges during the Blue Kite horrors etc.

Do you have any idea what China was like before Mao took over? Believe me, it was way, way, way worse that it was under Mao.

Really? Mao set a world record by doubling life expectancy in in the shortest period of time. Life expectancy was doubled from 32 in 1949 to 65 in 1980. A world record! Think how many lives Mao saved! Sure he killed some people, but he saved so many other lives. This is why so many people who lived under Mao revere him to this very day, though it is admitted that he made mistakes.

Industrial production grew at about 10% per year under Mao. Agricultural production exploded under Mao. Medical care was dramatically expanded to where it served the whole population. There were vast expansions in education and after Mao, every Chinese could go to school. There was a massive expansion in housing under Mao and few Chinese lived in slums anymore. Life in countryside improved dramatically under Mao.

The state still plays a huge role in the economy and to some extent the economic progress of the nation is indeed planned or guided by the state. But the same is done in Japan and South Korea.

You realize that all land in China is owned by the state?

Do you have any idea how much money the Chinese state spends at various levels on public projects of all kinds?

Do you realize that the #2 maker of TV’s in the world is a Chinese state firm?

You realize that all Chinese publically owned firms are officially owned by their workers. This was something that Mao put in and the “reformers” have not been able to get rid of it. The more money the firm makes, the larger the workers’ paycheks are.

You realize that 45% of the economy is still publicly owned, right? The difference is now much of that is owned by municipalities and those cities actually compete against each other. Also state firms are run to make a profit, but the profit goes to the state where it is plowed right back to the people in all sorts of ways.

Even the market is under pretty serious control of the state. Private firms need to go along with the project or risk being shut down and confiscated. Much of the massive Chinese development in China is done by state firms. Many Chinese state firms now compete globally against capitalist enterprises, so it’s sink or swim. Many pro-capitalist rightwingers in the US have been complaining about having to compete with Chinese state firms because they are shored up by the Chinese state so therefore this is somehow unfair competition.

31 Comments

Filed under Agricutlure, Asia, Asian, Capitalism, China, Chinese, Economics, Education, Government, Health, History, Labor, Left, Maoism, Marxism, Regional, Socialism, Sociology

31 responses to “The Gains and Legacy of Maoism and the State Role in the Chinese Economy Today

  1. The ancient Chinese dynasties were hostile towards capita and not until very recently, Chinese scholars who had been brainwashed by white man economist full understood the reasons — even though Marx had fore warned.

    During past 20 years or so, many western educated scholars returned from USA argued the enmity towards business is what made China stagnate. Since 2008, there was a massive rethink on capitalism and re-interpretation of historical facts.

    Now a theory gaining prominence that Chinese states realized long time ago that private capita accumulation will weaken central states control. The sinister thing with it is private capita will be powerful enough to capture imperial power, privatize gain, and socialize lost.

    There was a revision on the collapse of Ming dynasty while not that mainstream though. Scholars pointed out that Ming got conquered by Manchus at the epitome of commerce development and ponder how can economic prosperity and military weakness go hand in hand?

    An explanation was put forth that the capitalist who made so much are too powerful and they are able to duck taxes, dumping it to peasants, triggering wide spread revolt, meanwhile imperial army lack of funding turn to loot, or desert.

    Chinese state learn the lesson.

  2. The reason why China can have massive infrastructure project and USA cant is because the states still control key production asset.

    When Chinese states ordered banks to loan and factories to produce, no one say NO.

    In USA, no government can infringe private property. Even when due tax are used to build infrastructure for public good, the rich, realize that ultimately much of these spending will come from the pocket refused. These rich fund NGO, often using environmental reason as pretext to oppose growth.

    The Chinese states also realize the downside of control, that is stagnation. So for Chinese, it is a weighing of how much control and how much to let go.

    But USA is still arguing we must allow social darwinism. Few years back, I read that someone advocate California shoot be allow to dry up if God decide, because doing someone else is anti capitalism.

    The further diversion of Sacramento River goes no where.

    China will just divert water.

  3. Chinese Capitalism is the reason Filipinos and Indonesians are willing to sell their bodies on Arab streets or work in Japanese canneries.

    Given a choice, they will come to America and flip burgers.

    No Filipino benefits more from living in Fuji half-breed syndicate like Philippines as they do if they manage to immigrate to California.

    As for your Central Planning, it led to famine but of course Russians are basically white so the argument against Communism is universal.

  4. James Schipper

    Dear Robert

    All of what you wrote is true, but his record looks less impressive if we compare China with Taiwan. In 1975, the year before Mao’s death, Taiwan was more prosperous than China, and it did not go through such upheavals as The Great Leap Forward and The Cultural Revolution. I wonder how life expectancy evolved in Taiwan between 1949 and 1980.

    Of course, Taiwan was also authoritarian, and its economic policies weren’t inspired by Friedrich Hayek. However, in Taiwan there was also room for free enterprise. There is a middle-ground between total economic statism and laissez-faire. The best economic policy is guided capitalism.

    Mao had 2 precious assets: full sovereignty and peace. For decades before WWII, China wasn’t really a sovereign country. The Japanese kicked out the white imperialists from China, and then the Americans kicked out the Japanese imperialists. The biggest favor that the US did for Asians was to terminate Japanese imperialism.

    Regards. James

    • CPC vs KMT, is not simple as current economic metric is able to portray. For example the land reform of Taiwan was spurred by the defeat of KMT in mainland and without it, Taiwan would have never progress.

      And Mao support of Ho Chi Minh liberate peasants from 1% of landlord who controlled 90% of land. Similarly without CPC ascending S Korea Synmann Lee and elites would not have pursue land reform.

      CPC is a catalyst would accelerate the development of East Asia from feudal to modern society. How about an East Asia the size of HK, never going through land reform.

      HK is an anormally which develop due to her status as China windows, when the whole world embargo China. Without this historical context, HK is a shit hole. And given HK wealth today, her citizen still live in cage.

      And Taiwan development will not be possible without transfer of technology and market access of USA, that Mao did not enjoy. When USA start to grant market access and far more restricted technological transfer to China after 1979, China picks up.

      But can we use after-1979 to counter the achievement of Mao 1949-1976? My points as below.

      The greatest achievement of Mao is he create a strong centralized unitary state, able to provide security for her citizen, something unseen since 1840.

      During 1945, China was a sick man of East Asia, ravage by Japanese, split by warlords, not unlike Syria today. After Mao, China defeated USA in Korea.

      And with KMT, China will still be fragmented because KMT being a elites controlled power, did not conduct land reform and never able to mobilize the people.

      And the embargo of USA against China has a side effect which eventually pave way for a formidabble China, challenging USA in every domain.

      China has learn from bitter lesson that she need to be self sufficient in every aspect of production, even after 1979. That leads to creating every industrial champion, against USA giants, for example passenger jet, B2B portal, telecommunications. Meanwhile, all other states in the world reduced herself to USA supply chain, and never able to break free from USA control.

      If USA embargo Taiwan, she is finish.

      But if USA embargo China, China is able to be self-sufficient, and USA is finished, as Walmart import most goods from China.

      In short, the Mao create a nation that can face USA. Withtout Mao, and with all western educated compatrador like those in HK or Taiwan, China will sink into USA economics colonization.

      You wont see that in economics textbook.

      Mao’s generate suffer the short term pain, while in the long run, creating an even stronger China, able to stand up to USA. China will be the beacon of mankind, giving human race a direction against capitalism,

    • Yee

      The main reason for Taiwan’s rapid economy development is the huge amount of capital they took with them when they fled.
      When Deng Xiaopeng started the reform first in southern China, money flooded in from oversea Chinese, you can see the same rapid development there. Same story everywhere.

  5. CREADERS

    USA can put its factories in New Guinea, Philippines or Bangladesh for HALF THE PRICE which is why things previously “Made in Japan” became “Made in Taiwan” and only since 1990 has it been “Made in China”.

    East Coastline of China is already Economically Colonized but IF Western corporations and companies decide to shift to Bangladesh…You’re screwed in the Interior where all the labor comes from (Cantonese city people will be fine).

    Chinese-Indonesians and Chinese-Filipinos are CAPITALIST EXPLOITATION EMBODIED.

    Why else would Filipinos want to immigrate to the U.S. or be raped in the Middle East.

    Let’s face it, Fuji Chinese have Economically Raped Southeast Asia (Except Thailand and Burma and Singapore where Indians offset them).

    I’m sorry to dwell on this point, but you contradict yourself.

    • Then Western corporation should leave and best, they should have not came to China.

      And you are as if China really spread her legs to white man corporation. White man has been complaining of red tape, non tarriff barrier and demand China streamline her approval process.

      One is naive to think all these are due to inefficient Chinese bureaucracy In reality China did not welcome many of western entreprise, and select what she want to bring in.

  6. I’d say China gladly welcomed Western companies: it was raised the living standards of workers who migrate East from the country faster than 50 years of Great Leaps Forward.

    Tariffs and Red Tape are so Ministers can steal some amount of bribe money as an extortion tax. Your Bureaucracy is not incompetent, it is corrupt.

    Corruption is also how Chinese operate in Philippines, Indonesia or wherever they themselves go for business.

    Chinese are still immigrating to Singapore, Philippines or anywhere else they can work on the labor market.

    • They dont spread their legs, and have a purpose to getting technology. Best white man companies use China ODM/OEM like foxconn.

      Apple did it, surrendering all her trade secret to China.

      For others like Google or Facebook when Indian brag so much when these folks set up shop in India, China dont even give them a damn and show them the door.

      Basically China prefer domestic champion rather than selling out to white man companies. And all Chinese talent work for Chinese champion instead of prostituting for USA big tech, like what Hindus are proud off.

      Google Facebook get lost.

      And you think China still yearn so much for who else?

  7. Yee

    Central planning is still going on today. It’s a 5-year plan to direct investment in certain sectors. State capital follows the plan, and smart private ones pay close attentaintion to the plan to find some opportunities.
    Works quite well.

  8. Yee

    Hey, there’s no need to fight.
    US’s way is fine, China could learn from them, just need a few adjustments—capital mustn’t be controlled entirely by private hands, because capital cares only about profit not the workers. Marx said this clear enough.
    Now, China’s economy is orchestrated by a bunch of economists who has a bachelor degree in China and a Phd in US, so they understand both China and US. l’m sure these guys are smart enough to find a way that suits us. Afterall, we’re very flexible, One-country-two-systems is nothing new.

  9. I’m not “fighting” with Creaders, he simply does not agree with the Western in Asia’s point of view (Bearing in mind I’ve lived all over Asia for 20 years).

    I’m sure Mao studied Marx, by the way. But Confucius warps Communists in China into believing society is a family instead of a socio-economic state.

    This is a white point of view: take it at face value.

    Chinese-Filipinos are the worst in terms of the effect they have had as an overseas merchant class (though the riots occurred in Indonesia).

    The rest of the world, as well as Malays, suffer for it because Filipinos who would otherwise have to work for nothing for Chinese family cartels then travel overseas surviving of street prostitution (Ugly to see a Filipino male in drag on Dubai streets), pittance labor, or scams.

    • Chinese in Malaysia are leaving because Malay are confiscating Chinese wealth using Islam. Without Chinese capitalist for exploitation, Malay dont even have any shit. They steal Chinese wealth and run everything to shit and bankruptcy. While they have some crumps when Chinese are there.

      Best thing is put Malaysia or Pinoy under Chinese as happened in Singapore. Chinese has raised these Australesian to unprecedented civilization and virtue.

      • CREADERS Virtue??? Chinese meth manufacturers seem to have made turning every Filipino into an Ice Junkie their purpose in life. Duterte, a stupid ugly policeman, has had to shoot thousands of them on the street.

        What virtues did Chinese bring to the poor dumb sex-loving Malays? Shabu? Gambling? Backbreaking labor for a pittance?

      • Duerterte is a Chinese and he is bring law and order.

        Chinese bring vice to Malay? You check basic fact.

        • Chinese drug kingpins created the lawlessness of the Philippines but Malay Filipinos were happy to bribe policemen to sell their heroin and Ice in the streets so Chinoys cannot be blamed for everything.

          Dueterte MIGHT BE 1/8 Chinese. He’s more of a Malay-ugly bad skin, big wide nose, tiny little eyes-than any other race. He might have 1/50 Spanish in him because of his name.

          No matter. He’s a Malay.

    • Yee

      US colonized Philippines for a hundred years and then kept her as a pet dog for decades, followed your lead, copied your system, any problem she has, you created them, not the Chinese under your rule. Just like India, there’s no Chinese there, but same shit happened there.

      • YEE Spanish owned Philippines for 400 years and America only possessed the place for 50…if you want to blame whites for something, they’d have to be the Spanish who created a Mestizo land-owning class that more or less runs the Philippines right up to this minute.

        Chinese-Filipinos are so disinterested in anything but cheap labor that although some are billionaires the reality is that America has to keep subsidizing the Philippines.

        Chinese CREATED the drug problem because making Ice Amphetamine is too complex for unschooled Filipinos. Marcos stamped out heroin in the 70’s which of course Chinese were also behind.

        America never had a thing to do with India. It was owned by Great Britain.

        • Yee

          It’s funny when a communist state failed, it’s the fault of the system; but when a western style system failed, it’s the fault of the pople.

  10. Malaysia and Philippines would really miss the drug labs, underground casinos, Chinese gambling junkies, corruption and bribery.

    Do Southeast Asians have a lower standard of civilization than Koreans or even Cantonese? They sit around eating bananas all day, of course they do.

    Have Fuji peasants of the worst sort made Philippines and Indonesia better places to live? Not really.

  11. Spanish had already been in the Philippines for 200 years before Chinese Fuji peasants showed up so the Filipinos were somewhat civilized. Indians were in Cambodia, Malaysia, Thailand lonnnng before the Chinese.

    Those would be Austronesian people like New Guinean people who are EVEN MORE unintelligent and unambitious than Malays, some of whom can be cunning (Filipinos are good liars, scam artists, thieves, prostitutes, street drug dealers, burglars).

  12. CREADERS Fuji peasants stopped Filipinos from eating one another?

    Crazy.

    • Places like Formosa/Taiwan still headhunting in 1900. Chinese areas are civilized.

      Everywhere Chinese go there are law and order.

      • You shot all the Taiwanese people like Cowboys shot Native Americans and the few that remain live in the mountains quietly drinking themselves to death.

        Chinese law and order? Triads in Vancouver killing one another over heroin and Tongs in New York. Sure, CREADERS.

        Chinese-Filipino drug kings were the ones who created the situation in the Philippines by introducing Ice and before that heroin (Which Marcos stamped out doing the same thing Dueterte is doing).

        Pinoys did their own part of course by selling the “Shabu” on the road and paying police off.

  13. Gay State Girl

    OMG I read that as “The gains and legacy of Masochism>”

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