Because as capitalism monopolizes, it is compelled to expand outward in order to fight falling rates of profit by raising absolute profits. The merging of bank and industrial capital into finance capital leads to export of capital, ie outsourcing. This process allows super-exploitation for super-profits, and is known as imperialism.
In the People’s Republic of China, under Mao and later the Gang of Four, growth was overall positive but was unstable. The centrally planned economy had brought great benefits in many areas, but because the productive forces themselved were underdeveloped, economic growth wasn’t steady. There began to be discussion and division in the party, until Deng Xiapoing’s faction pushing for Reform and Opening Up won out.
Deng’s plan was to introduce market reforms, localized around Special Economic Zones, while maintaining full control over the principle aspects of the economy. Limited private capital would be introduced, along with market reforms. This was a gamble, but unlike what happened to the USSR, this was done in a controlled manner that ended up not undermining the socialist system overall.
China’s rapidly improving productive forces and cheap labor ended up being an irresistable match for US financial capital, even though the CPC maintained full sovereignty. This is in stark contrast to how the Global North traditionally acts imperialistically, because it relies on financial and millitant dominance of the Global South. This is why there is a “love/hate” relationship between the US Empire and PRC.
Fast-forward to today, and the benefits of the CPC’s gamble are paying off. The US Empire is de-industrializing, while China is a productive super-power. The CPC has managed to maintain full control, and while there are neoliberals in China pushing for more liberalization now, the path to exerting more socialization is also open, and the economy is still socialist. It is the job of the CPC to continue building up the productive forces, while gradually winning back more of the benefits the working class enjoyed under the previous era, developing to higher and higher stages of socialism.
Because as capitalism monopolizes, it is compelled to expand outward in order to fight falling rates of profit by raising absolute profits. The merging of bank and industrial capital into finance capital leads to export of capital, ie outsourcing. This process allows super-exploitation for super-profits, and is known as imperialism.
In the People’s Republic of China, under Mao and later the Gang of Four, growth was overall positive but was unstable. The centrally planned economy had brought great benefits in many areas, but because the productive forces themselved were underdeveloped, economic growth wasn’t steady. There began to be discussion and division in the party, until Deng Xiapoing’s faction pushing for Reform and Opening Up won out.
Deng’s plan was to introduce market reforms, localized around Special Economic Zones, while maintaining full control over the principle aspects of the economy. Limited private capital would be introduced, along with market reforms. This was a gamble, but unlike what happened to the USSR, this was done in a controlled manner that ended up not undermining the socialist system overall.
China’s rapidly improving productive forces and cheap labor ended up being an irresistable match for US financial capital, even though the CPC maintained full sovereignty. This is in stark contrast to how the Global North traditionally acts imperialistically, because it relies on financial and millitant dominance of the Global South. This is why there is a “love/hate” relationship between the US Empire and PRC.
Fast-forward to today, and the benefits of the CPC’s gamble are paying off. The US Empire is de-industrializing, while China is a productive super-power. The CPC has managed to maintain full control, and while there are neoliberals in China pushing for more liberalization now, the path to exerting more socialization is also open, and the economy is still socialist. It is the job of the CPC to continue building up the productive forces, while gradually winning back more of the benefits the working class enjoyed under the previous era, developing to higher and higher stages of socialism.
For further reading:
Qiao Collective’s Introductory Socialism with Chinese Characteristics Study Guide
Socialism with Chinese Characteristics ProleWiki page
Socialist Market Economy ProleWiki Page
People’s Republic of China ProleWiki Page
My “Read Theory, Darn It!” Introductory Marxist-Leninist Reading Guide
Has China Turned to Capitalism? Reflections on the Transition from Capitalism to Socialism by Domenico Losurdo
China Has Billionaires by Roderic Day
The Long Game and its Contradictions
Imperialism, The Highest Stage of Capitalism by Vladimir Lenin
Was not expecting a Billy Woods quote
It fits!