Capitalism With Chinese Characteristics: Why the Communist Party Has Abandoned Marxism in Deeds But Not In Words

China’s communist party has managed to survive by holding the banner of Marxism while enriching officials through ‘red’ capitalism.
Capitalism With Chinese Characteristics: Why the Communist Party Has Abandoned Marxism in Deeds But Not In Words
A general view of buildings in the abandoned Qingquan Steel plant which closed in 2014 and became one of several so-called 'zombie factories' in Tangshan on Jan. 26, 2016. Kevin Frayer/Getty Images
Cheng Xiaonong
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This is the final of a four part series. Parts one, two, and three were published previously.

Since Marx created his communist theory, China’s has become the first capitalist economic system under communist party rule. The Chinese Communist Party (CCP) started its reign by eliminating capitalism—transforming private ownership into state ownership—but was unable to create a successful socialist economic system. It finally had to switch back to a capitalist system to extend its rule.

During the reform to private ownership, CCP officials at all levels, and their families, became entrepreneurs, large property owners, and huge financial asset owners. Their process of wealth accumulation has been one of darkness and crime. They thus needed the red regime to protect their property and lives, and they also needed government monopolies to continue amassing more wealth. Therefore, these people are the strong supporters of China’s current system, rather than facilitators of democratization.

Unlawful Misappropriation

How did the CCP’s red elite go from owning nothing to becoming super wealthy in a short period of 20 to 30 years? This is the communist-capitalists’ secret and the guide to understanding the communist capitalist system and the future political direction of the CCP interest groups. Basically, they achieved it through unlawful misappropriation of public assets, maintaining monopolies of important industries, and by manipulating policies to gain benefits and maintain their authoritarian rule.

Cheng Xiaonong (NTD)
Cheng Xiaonong NTD
Cheng Xiaonong
Cheng Xiaonong
Contributor
Dr. Cheng Xiaonong is a scholar of China’s politics and economy based in New Jersey. Cheng was a policy researcher and aide to the former Party leader Zhao Ziyang, when Zhao was premier. He also served as chief editor of the journal Modern China Studies.
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