Socialist China or Capitalist China? It’s All the Same to the Country’s Communist Rulers

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Why China Is Not Socialist

Colonial politics and imperialism are not healthy, curable deviations of capitalism…they are the inevitable consequence of the very foundations of capitalism. Competition among individual entrepreneurs either to become ruined, or to ruin others; competition between individual countries places before each of them the alternative of their remaining behind, running the risk of [falling behind], or ruining and conquering other countries, thus elbowing their way to a place among the great powers. – V.I. Lenin, “Imperialism and Socialism in Italy”

May 12, 2022

By Stephen Gowans

From The Wall Street Journal we learn that China’s President Xi Jinping has hammered home the need for tighter party control over the economy with a wider role for state enterprises. Under Xi, China’s Communist Party has tried to transition from ‘economics in command’ to ‘politics in command.’

But now “China’s economy is struggling, and its financial markets are suffering. Some economists expect growth to contract this quarter. Millions of graduates are struggling to find jobs.”

Premier Li Keqiang is “helping press Xi to dial back some measures that have contributed to China’s economic slowdown.”

“As a young man, Li pursued a doctorate in economics under a prominent Chinese economist known for advocating Deng Xiaoping’s market-reform agenda and privatizing state firms.”

“Under Mr. Li’s influence, Beijing recently eased a regulatory crackdown on private technology firms, loosened lending to property developers and home buyers, and acted to help some manufacturers”, including Tesla, controlled by Elon Musk, the world’s richest person, “resume production when much of China has been forced into lockdowns by Mr. Xi’s zero-Covid approach.”

As the Marxist sociologist Albert Szymanski once pointed out, communists, like Xi, who choose to operate within the capitalist system soon discover that state policy is structured by capitalism, not by their policy preferences. Decision-makers who defy capitalism’s imperatives find their actions precipitate crises. Humbled, they quickly back peddle.

In a Chinese idiom, economics, i.e., capitalism, is in charge.

I explore this issue in my new book The Killer’s Henchman: Capitalism and the Covid-19 Disaster.

“The political orientations of the people who hold high-level positions in the capitalist state are largely irrelevant. The logic of capitalism structures the policy boundaries within which policy- and decision-makers operate, forcing conservatives, liberals, social democrats, and even communists who elect to work within the capitalist system, to operate within the same narrow pro-capitalist policy space. The prosperity and stability of a capitalist society depends on the private owners of capital accumulating sufficient profits. If they cannot generate enough profit, they cease to invest, and economic activity grinds to a halt. To maintain stability, governments must pursue policies to support the profit-making activities of their business communities. If they choose not to, their only option is to mobilize popular support to bring the economy under public ownership and control, so that investment decisions can be transferred from private hands to the public sphere, from profit-making as its goal to satisfying public needs as its end. There is no middle ground, where working-class interests can be robustly and continually expanded within a capitalist framework at the expense of the capitalist class.”

Capitalism structures state policy, not only in the realm of domestic matters, but in foreign relations, as well. Communists who elect to operate within the capitalist system are constrained to compete with other capitalist states for markets, raw materials, spheres of investment, and strategic territory, vital to their investors and profit-accumulating enterprises. If they are to play the capitalist game, states can no more absent themselves from rivalry with other states— with potential to escalate to war—than a private firm can absent itself from rivalry with its competition.

As two Bolsheviks wrote in their ABC of Communism, each “producer wants to entice away the others’ customers, to corner the market. This struggle assumes various forms: it begins with the competition between two factory owners; it ends in the world, wherein capitalist States wrestle with one another for the world market.” And in the struggle of capitalist states for the world market—in arms, oil and natural gas, rare earths, vaccines, robotics, supercomputers, AI, autonomous vehicles, 5G, and other commodities—lies the potential for war.

There is no doubt that Beijing has chosen to play the capitalist game. It is the centerpiece of its  development project. There is, therefore, no option for China to excuse itself from imperialism. If it is to develop along capitalist lines, it must behave as a capitalist state, including by vying with other states for capitalist advantage around the world and indulging billionaires like Elon Musk and Apple’s Tim Cook, capitalists who have grown immensely wealthy by exploiting cheap Chinese labor.

That China’s capitalist development project is under the command of communists, neither negates the reality that the project is one of integration into a world capitalist system based on exploitation, or that, as Xi is finding out, politics in command can be checked by capitalism in command.

As political science professor Minxin Pei told The Wall Street Journal, Xi may be a “leftist deep down, but he has to make tactical compromises over the economy.” That is, the world capitalist economy.

In sum, despite the Communist Party being nominally in charge, and the president being a leftist “deep-down,” China is integrated into the world capitalist economy as a major, if not the major player, by the choice of China’s Communist Party rulers. State policies are not structured by communists seeking to end the exploitation of one human by another, but by the imperatives of the capitalist system Chinese communists have consciously embraced.

The idea that China is socialist is as far-fetched as the idea the moon is made of cheese.

Capitalism and the Covid-19 Disaster

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Pandemics Are Not Inevitable, and China’s Covid-19 Experience Proves It

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Why Carlos Martinez’s and the Multipolaristas’ View of Imperialism is Too Simple

By Stephen Gowans

May 6, 2022

Carlos Martinez, a friend of what he believes to be a socialist China, but is in reality a very capitalist China, has a very simple view of imperialism, or, to be more precise, a view that clashes with what I consider to be more complex.

According to Martinez, “’the imperialist system’” is expressed as “’an imperialist alliance led by the U.S. (and incorporating Canada, Western Europe, Australia and Japan) which engages precisely in a global ‘process of domination guided by economic interests.’ This takes the form of a network of 800 military bases; unilateral sanctions against dozens of countries; wars of regime change; proxy wars; destabilisation campaigns; structural adjustment programs; nuclear threats; and more.” In other words, imperialism is a specifically US alliance of domination based on military and economic power.

My view of imperialism follows along the lines of those developed by Hilferding in Finance Capital, Bukharin in Imperialism and World Economy, and Lenin in Imperialism, the Highest State of Capitalism.

In the era of advanced capitalism, imperialism is a world economic system of rivalry among states for access to markets, raw materials, investment opportunities and strategic territory on behalf of their capital accumulating enterprises. Importantly, in this view, imperialism is defined as a system of rivalry, in which all major capitalist powers are compelled to take part by the system’s imperatives.

Carlos views the United States as a capitalist behemoth that has taken an aggressive attitude toward China, which it seeks to contain. I agree with this assessment. Where I disagree with Carlos is in this: He sees China’s defense against US predation as anti-imperialism, rather than as an expression of the antagonism that is inevitable between two large capitalist powers competing in a global capitalist system. The rivalry touches competition for markets, raw materials, investment opportunities, and strategic territory (including maritime routes.) China’s actions may be defensive, and those of the US and its satellites aggressive, but China’s actions, defensive though they may be, are nonetheless competitive actions, part of the capitalist-driven rivalry between the two powers.

As a major, and by some accounts the major, actor in the global capitalist system, China has no option but to compete against other capitalist powers for profit-accumulating opportunities around the world. Its compulsion to engage in capitalist competition on a global scale is all the stronger for the Chinese Communist Party pursuing a model of raising China and recovering its greatness through capitalist, and specifically Listian, methods.

While China may face fierce and aggressive competition from the United States (and other major capitalist powers) it is not outside of that competition. Carlos has essentially defined imperialism as highly aggressive competition led by the United States based on military and economic power. In excluding economic antagonism and focusing exclusively on the strength of the US and its satellites (and excluding two major actors in the world economic system, China and Russia), Carlos’s view is at odds with the model developed by the three Marxists cited above. Curiously, he defines this model as “pseudo-Marxism.”

One embarrassing implication of Carlos’ definition is that it excludes the Axis powers as imperialists. 1930s Germany, Italy, and Japan complained bitterly that the major imperialist powers of the day, Britain, France, and the United States, sought to contain the trio’s development and deny them their place in the sun. In other words, they argued for greater multipolarity. To be sure, in the capitalist competition for profit-making opportunities around the world, the Axis’ powers fared poorly by the standards of their more powerful rivals. Their bristling against US, British, and French encroachments on what they viewed as their neighborhoods and spheres of influence were seen in Axis’ capitals as imperialist predations. By Carlos’s definition, the efforts of the Axis’ powers to recalcitrate against the stronger powers (to defend themselves, they said) and redivide the world, was anti-imperialism, not the expression of antagonism between one set of weaker capitalist powers against another set of stronger ones.

Carlos’s definition of imperialism emerges from a view that the world would be a better place were the overwhelming power of the United States checked by the emergence of peer competitors. This is, in a way, a simple inversion of Washington’s view. Washington sees the re-emergence of great power rivalry as a threat. In the view of the multipolar advocates, whatever is a threat to the United States must be a blessing for the people whom the dominant power tyrannizes.  

The problem with this view is that it fails to take the context of a world capitalist economy into account. If three yahoos engage in fisticuffs in a small room in which tens of people are entrapped, and one yahoo is very strong and the other two are weaker, and as they fight, they trample and fall upon those who can’t escape, then building the strength of the weaker two at the expense of the stronger isn’t going to make the people in the room any safer. The only way to bring calm and safety to the room is to bring the fighting to an end. In less metaphorical language, that means ending capitalism and its ineluctable antagonisms among classes and states, not seeking a more equal development among capitalist powers to continue their war of capitalist rivalry.

Far from being a step forward, a midpoint on the road to revolution, as some seem to think, a multipolar world is in fact a return to conditions that brought us the industrial exterminations of two world wars. It is a regression, a worsening of existing conditions. The answer is not a return to a more intense antagonism among equally balanced capitalist states, a more perilous world even than the one in which we’re already mired, but an end to classes and states altogether.

A nonpolar world in which imperialism has been transcended, in contradistinction to a multipolarity of roughly equally balanced capitalist powers, is not, pace Carlos, a pseudo-Marxist aspiration. It is the very essence of Marxism.

Eva Bartlett and the Pleasures and Displeasures of “Independent Journalism”

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In the War in Ukraine, Which Side Are You On?

By Stephen Gowans

May 1, 2022

What’s more important? Addressing the climate emergency or entangling Russia in an exhausting war? For Washington—which plans to invest more in keeping the war in Ukraine going than in arresting the threat to humanity of climate change—the answer is the latter.

To avert a war in Ukraine, the US could have accepted Russia’s reasonable proposals for a new security architecture in Europe. It declined. Now that war has broken out, it could be working on a negotiated peace in Ukraine. (Even the IMF urges it to do so.) Washington prefers not to.

Instead, the US is investing heavily in keeping the war going as long as possible, in order, it says, to weaken Russia. The US lured Russia into the trap of war. Moscow stupidly took the bait. Now, much of the world, arms manufacturers excepted, suffer.

In what does the contest between the US and Russia originate?

It originates in a struggle over the questions of whether:

  • The profit-making opportunities of Ukraine will belong to the EU or a customs union with Russia.
  • Europe will depend for its energy on US-controlled suppliers or Russia.

Which side do you want to be on?

  • The side seeking Ukraine’s integration into the EU and Europe’s energy dependence on US-controlled suppliers?
  • The side seeking Ukraine’s integration into a customs union with Russia and Europe’s continued energy dependence on Russia?

In other words, whose billionaires are more important to you? The US’s or Russia’s?

Or are billionaires, and their contests for profits on a world scale, the problem? And is choosing sides in their contests, rather than eliminating them altogether, a grave error?

The war in Ukraine offers no benefit to ordinary people that I can think of.

But it does present multiple harms:

  • Higher energy and food costs.
  • A migrant crisis.
  • Supply chain disruptions.
  • A significantly heightened risk of nuclear war.
  • Higher government expenditures on arms at the expense of spending on health care, education, housing, and addressing the climate emergency.

Ordinary Ukrainians face the threats of death, injury, homelessness, and economic harm. The standard of living of ordinary Russians is declining, and will decline further. There is nothing good in this war for ordinary people, anywhere.

What’s more, based on the way the war is unfolding, it appears that the United States and NATO will emerge stronger. Anyone who thinks this war will be a blow to US primacy is sorely mistaken.

Who could possibly support this war?  The answer is:

  • Investors in arms and energy companies.
  • Investors in businesses that stand to gain from securing new profit-making opportunities in Ukraine.
  • Operatives of any of the belligerent states.

Alongside these bourgeois supporters of the war, stand a few proletarian supporters. Among them are:

  • The ignorant.
  • The confused.
  • Class traitors.
  • People who pose as socialists, peace-activists, or “independent journalists,” but are in reality propagandists of the belligerent governments.

The only wars worth supporting are wars against oppression. The struggle between Washington and Moscow for control of Ukraine and the supply of energy to Europe does not fall into this category.  Ukrainians are not oppressing Russians.

Choosing sides in a contest between national groups of billionaires vying for business opportunities in Ukraine and Europe is, for ordinary people, an exercise in self-harm. If we’re going to chose a side in a war, let it be the side of you and me, not the side of billionaires.

And let the war be a battle against the menaces of climate change, precarious work, unaffordable housing, exploitation, racial oppression, and pandemics, not a contest over whether US billionaires or Russian billionaires will dominate Ukraine’s profit-making opportunities and the European energy market.

Imperialism and the Solomon Islands

By Stephen Gowans

April 21, 2022

In Lenin’s view, imperialism is immanent in capitalism as a global system. Inasmuch as China is one of the most significant players in this system, if not the most significant, the implication of Lenin’s view is that imperialism is also immanent in China.

A number of people who claim to be anti-imperialists and to understand the concept thoroughly, to the point of holding workshops, participating in panels, and writing articles to instruct others on what it means, have, despite their professed knowledge, defined the concept in a manner that departs significantly from the way in which imperialism has been understood historically. Until Russia invaded Ukraine, there was little mystery about what imperialism is. Now, it has become altogether different from what it has always been understood to mean. And while many of these same people claim at least a passing knowledge of Lenin’s view of imperialism, the Bolshevik leader would have been baffled by their understanding.

In opposition to commonly accepted definitions and the Leninist tradition, the anti-imperialist docents have developed a view of imperialism that resonates less with Lenin and more with a view developed by Shintoist Japan in the 1930s. According to this view, imperialism is North American and Western European domination of the world. Anti-imperialism is the effort of a rising power to liberate its neighbors from this domination by folding nearby states into its own (declared or undeclared) regional empire (the Greater East Asian Co-Prosperity Sphere in Japan’s case.)

Hence, Russia’s efforts to “liberate” Ukraine from the United States and Europe, and to incorporate parts or all of it into a palingenetic Russian empire, is viewed as anti-imperialist. Likewise, China’s new security agreement with the Solomon Islands is seen as anti-imperialist—a weakening of US and Australian domination of the islands. While it certainly is this, it is also an effort to define a security architecture that allows Beijing to protect Chinese investments abroad and to safeguard shipping routes that are vital to the unimpeded access of Chinese billionaires to foreign markets and sources of raw materials.

The Leninist view of imperialism as inherent in a globalized capitalism can be used as a lens to parse the New York Times’ reporting on the recent China-Solomon Islands security agreement. According to a leaked draft of the accord, Beijing is empowered to dispatch police, troops, and warships to the islands to protect Chinese investments and Chinese citizens, an agreement that resonates with multiple similar accords struck between Washington and countries in Latin America and beyond.

The Times, tacitly defining US ruling class interests as humanity’s interests, presents the accord as a danger to the world. “China’s leader, Xi Jinping, and his army now have a foothold in an island chain that played a decisive role in World War II and could be used to block vital shipping lanes,” the newspaper warns. What isn’t mentioned is that the United States and its satellites control the shipping lanes. The deal allows China to challenge US control of the maritime routes on which it depends—or more precisely, on which its capitalist economy depends—for access to foreign markets and sources of raw materials. The deal doesn’t threaten humanity so much as it threatens US leverage over a capitalist rival.

The Times continues its diatribe against the accord by noting the pact’s imperialist features, all the while avoiding any mention of the similar accords Washington, London, Paris, and other imperialist capitals have signed with numberless governments around the world for centuries, sometimes at the point of a gun.

“To start,” the accord “provides a broad mandate for China to potentially intervene when its foreign investments and diaspora are under threat, as it stretches its projection of military power.”

The newspaper quotes Richard Herr, a law professor at the University of Tasmania, who observes that “With the pact, China is essentially trying to establish a principle of using military force to protect its economic presence in places where it claims the government does not have the capacity.” In this, China acts no differently than the United States.

“What the Solomons’ deal tells the world, at the very least,” he adds, “is that China believes that if its major projects are threatened, it wants a right to protect them.” Again, this is standard US procedure, or, to put it another way, standard procedure for major capitalist powers. Consider also France’s intervention in Africa to protect access to and investments in uranium mines, vital to an important form of French energy.

“The lesson for the rest of the world is that China is looking to rebalance the global order in its favor,” Herr continues. “And whether that means opening trade routes, establishing a military facility or signing a security agreement, Beijing will act to benefit its own interests.” Herr goes on to say that Beijing will do so at the expense of “democracy and an open and free world”, euphemisms for the US empire.  In other words, the expansion of a Chinese empire comes at the expense of a US empire.

What the Times’ article shows, albeit in a clearly chauvinist way, is that large capitalist powers and blocs—the United States and its satellites, Europe (to the extent it acts independently of the United States), China, and Russia—seek to fashion the world order in their favor.  They seek to bring as much of the world economy as possible under their own control. This means security arrangements and treaties to protect their investments abroad, and to safeguard their access to foreign markets, sources of raw materials, strategic territory, and investment opportunities. To be sure, the United States is by far the strongest of the rivals, but that doesn’t mean that Russia and China are not driven by capitalist compulsions to dominate the planet every much as strong as those that drive US expansion—a compulsion to settle everywhere, to nestle everywhere, to establish connections everywhere.

With multiple capitalist power centers existing within the framework of a globalized economy, rivalry for profit-making opportunities is inevitable. The rise of one power center at the expense of another may appear to be anti-imperialist, but only so far as the declining power is erroneously viewed as the sole imperialist, i.e., as the lone capitalist power in search of investment opportunities, markets, and raw materials. The decline of US and Western European influence in East Asia with the rise of Japan beginning in the 1930s may have appeared to the naïve as an anti-imperialist victory—this was certainly the illusion Tokyo aimed to create—but it was an illusion all the same. So too is China’s rise an illusory anti-imperialist victory. It may be a victory against China’s domination by the United States, as the rise of the United States was a victory against US domination by Britain, or Germany’s rise was a challenge to British hegemony, but it is in no way a victory over the persistence of capitalist rivalry for markets, raw materials, investment opportunities, and strategic territory. It is simply a continuation of this process.

Imperialism within a globalized capitalist economy can be envisaged along two axes. One axis concerns the process of large countries exploiting profit-making opportunities in smaller countries. The anti-imperialist docents err in thinking of imperialism in these terms alone. The other axis concerns the rivalry among large countries for profit-making opportunities within the borders of the countries its rivals dominate and within the borders of its rivals themselves. The first axis is one of large countries dominating weaker ones. The second is of large countries competing among themselves to monopolize the sum total of the world’s profit-making opportunities—to shape the global order in their favor, to use terminology favored by the New York Times.  

The security pact between China and the Solomon Islands is a manifestation of imperialism, in three acts:

  • In China seeking to create a security architecture to protect its tycoons’ investments beyond China’s borders.
  • In Beijing’s efforts to counter US domination of shipping lanes important to China’s capitalist economy.
  • In the opposition of the United States (and its sub-imperialist partner, Australia) to China’s challenge to US-led control of maritime routes.

Capitalism need not be invoked to define China and Russia, along with the United States, France, and Great Britain—the permanent members of the UN Security Council—as imperialist states. As victors of WWII, these self-defined “model” nations have assigned to themselves rights and privileges senior to those of all other nations. Russia, for example, can test a new ballistic missile with impunity, by virtue of its permanent membership on the council and access to veto powers, while participating, along with China, in the imposition of international sanctions on a small country, North Korea, for doing precisely the same.

Large countries, including the largest of all, China, have historically dominated their weaker neighbors, even if some of them, China not excepted, were dominated themselves. A fortiori, we would expect large capitalist countries, driven by an expansionary capitalist logic, to continue in this manner. China shows no evidence that it is an anomaly or a departure from expectation.

Cheering the Rise of Yet Another Capitalist Empire Hurts You and Me

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The Mental Illness of Anachronistic Radical Socialism

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