The presence of private property does not mean China is capitalist, just like the presence of public property does not mean the US Empire is socialist. What matters is which aspect is principle, and the class character of the state. In China, the large firms and key industries are overwhelmingly publicly owned, and the state is run by the working classes. No mode of production has ever truly been “pure,” and thus treating socialism like some magical, special mode of production is absurd.
Over 90% of Chinese citizens support their system, yes. It isn’t “deception,” and you keep trying to paint China as especially duplicitous and evil, which is borderline chauvanism. In China, capitalists are regularly persecuted, executed, and otherwise kept in control by the socialist state.
I think it’s important to mention that it’s not just the proportion of state owned industries in China. The finance sector is state controlled, which in a capitalist society is how the highest level decisions are made. Anyone who’s read Imperialism will recognize China as a socialist state.
Yep, agreed! That’s why I said principle aspect, not majority, and referenced the large firms and key industries, ie the commanding heights. Having a state-run bank alone isn’t socialism either, it’s important to recognize all of it, and which direction it’s going. Though, thanks for adding, if it was unclear for you then doubtless it was unclear for others!
That china is a socialist state is not in question.
We’re talking about its economic system, and I believe “state capitalism” is the right description.
That most of its major industries are state controlled and the biggest firms are SOEs doesn’t change this.
As a side note: There is still a lot of private capital slushing around in China, and many USD-millionaires. There’s still significant inequality. They still have work to do, but that doesn’t detract from what they have achieved.
The term “state capitalism” confounds more than it illuminates.
The capitalist mode of production is founded on the M-C-M’ circuit. The state, by contrast, is not, because as the sovereign, it is the issuer of money. It doesn’t need to make a profit from its commodities or services because it creates money by fiat[1]. Therefore the capitalist mode of production is exclusive to the private sector.
I think you’re getting hung up on an artificial separation of politics and economics, you should look up a critique of this or investigate why political economy is a useful framework for analysis.
The goal of socialism is not equalitarianism, but to improve the lives of the working classes and work towards collectivizing all production and distribution to satisfy the needs of all. Further, state capitalism is a better descriptor for the US Empire, Singapore, ROK, etc, not for a socialist market economy like China.
Markets are the coordination mechanism, while the ownership structure is clearly capitalist in nature, because a huge amount of capital in China is privately owned. And yes, I am aware many prefer to call their brand of state capitalism “socialist market economy” instead.
That the state owns significant amounts (and the majority in key sectors) is a good thing.
Not a goal? Economic equality does seem to be a goal of China’s socialism… Common prosperity, with a reduction of extreme inequality as one of the key tenets.
I did. The fact that private capital exists in China does not make it capitalist. Capitalism, as a mode of production, refers to a broad system, not private ownership in general. Public ownership is the principle aspect of the economy, you cannot slice out private ownership as a static, disconnected thing and call it capitalism, it must be judged within the context of its existence. It isn’t just that the state owns a significant amount, but that the state owns the commanding heights of industry, the large firms and key industries, finance sector, and more, with the working class in control of said state.
State capitalism refers to capitalist states, run by capitalists with private ownership as the principle aspect, but with large degrees of state control. Nazi Germany is another good example of state capitalism, a strong bourgeois state is not the same as a socialist market economy.
Marx railed against equalitarians. Equality isn’t the goal, but reducing disparity while focusing on improving the lives of the working classes. If that means billionaires existing as a tactical contradiction, then this isn’t a mark against socialism, but instead a contradiction that requires solving down the line. As China remains integrated into the world market, billionaires do exist, but they hold no political power.
Capitalism can and does exist outside of capitalist states (China being an example of this)…this is obviously a matter of differing definitions. That’s OK, but I’d suggest some links to formal definitions. Perhaps there’s a wiki somewhere?
edit: I think nazi germany’s economy fits the term command capitalism better than state capitalism.
You’re fundamentally treating capitalism differently from socialism, which is your error. Socialism isn’t when the government does stuff, just like capitalism isn’t when private property. As for definitions, here’s Prolewiki on State Capitalism and on Socialist Market Economy.
The presence of private property does not mean China is capitalist, just like the presence of public property does not mean the US Empire is socialist. What matters is which aspect is principle, and the class character of the state. In China, the large firms and key industries are overwhelmingly publicly owned, and the state is run by the working classes. No mode of production has ever truly been “pure,” and thus treating socialism like some magical, special mode of production is absurd.
Over 90% of Chinese citizens support their system, yes. It isn’t “deception,” and you keep trying to paint China as especially duplicitous and evil, which is borderline chauvanism. In China, capitalists are regularly persecuted, executed, and otherwise kept in control by the socialist state.
I think it’s important to mention that it’s not just the proportion of state owned industries in China. The finance sector is state controlled, which in a capitalist society is how the highest level decisions are made. Anyone who’s read Imperialism will recognize China as a socialist state.
Yep, agreed! That’s why I said principle aspect, not majority, and referenced the large firms and key industries, ie the commanding heights. Having a state-run bank alone isn’t socialism either, it’s important to recognize all of it, and which direction it’s going. Though, thanks for adding, if it was unclear for you then doubtless it was unclear for others!
That china is a socialist state is not in question.
We’re talking about its economic system, and I believe “state capitalism” is the right description.
That most of its major industries are state controlled and the biggest firms are SOEs doesn’t change this.
As a side note: There is still a lot of private capital slushing around in China, and many USD-millionaires. There’s still significant inequality. They still have work to do, but that doesn’t detract from what they have achieved.
The term “state capitalism” confounds more than it illuminates.
The capitalist mode of production is founded on the M-C-M’ circuit. The state, by contrast, is not, because as the sovereign, it is the issuer of money. It doesn’t need to make a profit from its commodities or services because it creates money by fiat[1]. Therefore the capitalist mode of production is exclusive to the private sector.
I think you’re getting hung up on an artificial separation of politics and economics, you should look up a critique of this or investigate why political economy is a useful framework for analysis.
Thanks. I find it quite fascinating, despite the open hostility of some here.
The goal of socialism is not equalitarianism, but to improve the lives of the working classes and work towards collectivizing all production and distribution to satisfy the needs of all. Further, state capitalism is a better descriptor for the US Empire, Singapore, ROK, etc, not for a socialist market economy like China.
You might have to provide your definitions…
Markets are the coordination mechanism, while the ownership structure is clearly capitalist in nature, because a huge amount of capital in China is privately owned. And yes, I am aware many prefer to call their brand of state capitalism “socialist market economy” instead.
That the state owns significant amounts (and the majority in key sectors) is a good thing.
Not a goal? Economic equality does seem to be a goal of China’s socialism… Common prosperity, with a reduction of extreme inequality as one of the key tenets.
I did. The fact that private capital exists in China does not make it capitalist. Capitalism, as a mode of production, refers to a broad system, not private ownership in general. Public ownership is the principle aspect of the economy, you cannot slice out private ownership as a static, disconnected thing and call it capitalism, it must be judged within the context of its existence. It isn’t just that the state owns a significant amount, but that the state owns the commanding heights of industry, the large firms and key industries, finance sector, and more, with the working class in control of said state.
State capitalism refers to capitalist states, run by capitalists with private ownership as the principle aspect, but with large degrees of state control. Nazi Germany is another good example of state capitalism, a strong bourgeois state is not the same as a socialist market economy.
Marx railed against equalitarians. Equality isn’t the goal, but reducing disparity while focusing on improving the lives of the working classes. If that means billionaires existing as a tactical contradiction, then this isn’t a mark against socialism, but instead a contradiction that requires solving down the line. As China remains integrated into the world market, billionaires do exist, but they hold no political power.
Capitalism can and does exist outside of capitalist states (China being an example of this)…this is obviously a matter of differing definitions. That’s OK, but I’d suggest some links to formal definitions. Perhaps there’s a wiki somewhere?
edit: I think nazi germany’s economy fits the term command capitalism better than state capitalism.
You’re fundamentally treating capitalism differently from socialism, which is your error. Socialism isn’t when the government does stuff, just like capitalism isn’t when private property. As for definitions, here’s Prolewiki on State Capitalism and on Socialist Market Economy.
https://www.britannica.com/topic/state-capitalism is the traditional definition, which I think fits pretty well.