The Divided China Xi Jinping Inherited from Hu Jintao


In my previous post, I mentioned that Khrushchev had established his powerbase but not strong enough to avoid being forced to resign. That powerbase refers to the powerbase that enables him to remain in his position instead of that enables him to carry out the revolutionary reform that harmed strong vested interests.

Emperor Jiaqing of Qing Dynasty had sound powerbase established by his predecessors and supported by prevailing Confucianism. He was able to punish his father Emperor Qianlong’s favorite high official He Shen and confiscate all He’s assets. However, he was unable to overcome powerful official group’s resistance to his efforts to overcome rampant official corruption given rise by He Shen’s corrupt leadership. Nor could the two succeeding emperors Daoguang and Xianfeng

That was more than 150 years ago. What about CCP top leaders in the People’s Republic of China that Deng Xiaoping regarded as cores of CCP collective leadership?

Deng chose Jiang Zemin as his successor. He regarded Jiang as the core of the third generation of CCP collective leadership, but after Deng died in February 1997 Jiang’s position as the core was challenged by Politburo Standing Committee members Li Peng and Qiao Shi in mid 1997 before the 15th CCP National Congress. Jiang’s position as the core was ensured by powerful elder Bo Yibo. Jiang further strengthened his powerbase later with the development of the most powerful Shanghai faction in CCP. As a result, he was able to have written into CCP constitution his Three Represents that justify China’s development of private sector that was fiercely opposed as capitalism by lots of CCP dogmatists.

Jiang’s successor Hu Jintao set up and developed a large and powerful CYL (Communist Youth League) faction in his 10 years in power. Hu had filled CCP Central Committee and its Politburo with lots of his faction members and appointed them high official posts. However, he was unable to conduct the further reform and opening-up for the transformation from export- and investment-geared economic growth to innovation-, creation and consumption-led growth.

In spite of his top position and powerful faction, Hu was challenged by the conservative faction led by Bo Xilai. There was heated debate between reformists’ idea of further reform and conservatives’ Maoism. Hu had found Bo’s crime of corruption and taken Bo in custody to deprive conservatives of their leader but was unable to punish Bo. As a result, in September 2012, two months before the 18th CCP National Congress, Jiang Zemin had to come out from his retired home in Shanghai to Beijing to personally preside over an expanded Politburo meeting to make the decision to punish Bo severely.

Xi inherited a divided China from Hu Jintao. He would certainly be unable fight rampant corruption and rectify CCP to prevent it from collapse if China remained divided. How could Xi unite China and find some strong force to help him attain his goals?

Article by Chan Kai Yee

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Jiang Zemin, 86, Remained the Core Able to Punish Bo Xilai


China’s Core System (5) (Parts (1), (2), (3) and (4) are “The Conundrum of China’s Collective Leadership” dated January 28, “No 2nd Generation of CCP Collective Leadership in China” on January 29 “Fight for the Position of the Core when There Was No Core” on February 22 and “Jiang Zemin Has Maintained China’s Centralized Core System on February 24)

Sometimes, something obvious becomes unclear as it is something rare.

That is the case of Jiang Zemin remaining the core of the CCP Dynasty.

In my book “Tiananmen’s Tremendous Achievements”, I point out that the political system in China now is the CCP Dynasty. The dynasty is characterized by having a core with the power similar to an emperor.

Deng Xiaoping said Mao was the core of the first generation of collective leadership. As pointed out in Chapter 60 “The Conundrum of China’s Collective Leadership”, Mao typically acted as an emperor with absolute power. There was no collective leadership at all

Deng called himself the core of the second generation of collective leadership, but was regarded as the paramount leader by people outside China.

How paramount is Deng the leader? He alone was able to decide to send troops to suppress democracy fighters at Tiananmen. Though retired, he alone was able to save his reform and opening up by his Southern Tour when conservatives prevailed.

How paramount is Jiang, the core of the third generation? People seem to have no idea about that. They invented the story that Jiang was beaten by Hu Jintao in power struggle when Chen Liangyu fell into disgrace for corruption. Certainly, there were quite a few other stories invented by people who know neither the China at present nor Chinese history.

I point out in my book “Tiananmen’s Tremendous Achievements”, Jiang had a majority through his protégés in the Politburo Standing Committee (PSC) when he retired in 2002. In 2007, though Hu Jintao succeeded in promoting his protégé Li Keqiang into the PSC, Jiang promoted his Xi Jinping into the PSC as the successor to Hu Jintao and maintained a majority through his protégés.

That did not seem convincing enough.

Now before the major reshuffle at the 18th Party Congress, Jiang has done something absolutely convincing in the Bo Xilai saga.

Like the time before Deng’s Southern Tour, the conservatives are strong again this time. Bo Xilai as the leader of the conservative faction even dared to set a Maoist Chongqing Model to challenge the reformists in China’s power center.

It was only with the help of powerful elders headed by retired heavyweight, the reformists were able to put Bo under house arrest. However, they were not strong enough to punish Bo harshly to prevent his return to power later.

Through investigation, they found Bo’s and his wife’s crimes of taking huge bribes, abusing power, etc., but they were not strong enough to punish Bo for such crimes.

As a result, Bo’s wife was not accused of taking bribes when she was prosecuted.

In the trial of Bo’s former protégé Wang Lijun, Bo was clearly involved but the prosecutor and court refrained to mention Bo by name. Bo still seemed untouchable.

Soon afterwards, at the weekend of the week from September 16 to 22, Jiang Zemin made a rare public appearance in Beijing before quite a few high officials.

In its report on September 25, SCMP said that Jiang attempted to demonstrate his “lingering” influence.

Surprise! The timing of Jiang’s appearance demonstrated his dominant instead of “lingering” influence in deciding to punish Bo harshly.

SCMP finally realized that in its report later titled “Former China president Jiang Zemin played key role in punishing Bo Xilai, say analysts”.

However, it is hard for people to believe how a leader who has retired for 8 years, can maintain his dominant power.

That is precisely something with special Chinese characteristics.

We have now got used to China’s socialism with Chinese characteristics that in fact is capitalism. Why can’t we understand that a collective leadership with a core means the leadership of a core with the power of an emperor?

Even after the 1911 Revolution that put an end to China’s traditional hereditary dynasties, China has still been ruled by one dynasty after another.

Yuen Shikai ruled China with the power of an emperor. True, there was a democratic parliamentary election, but Yuen assassinated the majority leader soon after the election and maintained his dominance.

When Yuen died, no one succeeded him as the dominant emperor. China was in chaos of wars between various warlords.

Then another dynasty, Chiang Kai-shek Dynasty emerged but failed to be thoroughly dominant and lost to the Communists in the civil war.

Mao Zedong came to power and promised to establish democracy for the people and dictatorship against the enemy. He even wrote an article to tell people that they are allowed to disagree, but he turned out to be an absolute emperor who cruelly crushed whatever dissent.

However, he was certainly marvelously great! In spite of the millions of death due to the famine caused by him and in spite of “Great Cultural Revolution” in which he persecuted lots of innocent people and reduced China to a nation without culture and knowledge, he remained worshiped by lots of China’s Maoists and quite a few people outside China including US well-known politician Henry Kissinger.

Therefore, people have got the wrong idea that Mao era had put an end to China’s history of dynasties.

However, the fact remained that Mao era was itself Mao Dynasty with Mao as its dominant Emperor though it was not a hereditary one.

The Chiang Kai-shek Dynasty, though fled to Taiwan, remained a hereditary one. Chiang was succeeded by his son Chiang Ching-kuo, who should be credited for Taiwan’s democratic transformation.

Deng Xiaoping created the CCP Dynasty by his idea of a collective leadership with a core. As described in my book, it is not a hereditary one that belongs to a family but a dynasty that belongs to a party.

It is certainly good for the CCP if there is a core like an emperor to govern the country, but the core shall be wise and competent to maintain his dominance. If so, he will satisfactorily maintain stability.

Jiang has turned CCP a party of the whole people by the second of his Three Represents. Hu Jintao has written into CCP constitution his Scientific Outlook on Development centered on putting the people first. Xi Jinping Thought regards the principal contradiction facing Chinese society as that between the people’s ever-growing needs for a better life and unbalanced and inadequate development and wants the Party to strive to resolve that contradiction. CCP has thus made clear that it is a party that belongs to the people and strives for the people’s interests and benefits.

Therefore the government of CCP is a government of the people and for the people though not by the people yet.

The above nature and goal of the dynasty make the core a very hard job. The core can never really retire. At the age of 86, Jiang as the core has to leave his home in Shanghai for Beijing to deal a crushing blow on the conservatives.

You may still wonder how a core can maintain his dominance all his life.

That is again something with special Chinese characteristics. You perhaps do not believe that, but it is something real for decades.

Mao maintained his dominance until his death. So did Deng Xiaoping and Jiang maintain their dominance even after their retirement.

You may wonder why even Mao was in a coma before his death, no one dare to challenge him. It was not until one month after Mao’s death powerful generals dared to arrest Mao’s protégés the Gang of Four.

That is again something with Chinese characteristics. In order to maintain his dominance all his life, the core has to skillfully apply China’s traditional art for being an emperor.

Mao applied the art taught in China’s classic “Han Fei Tze” to rule China with awe, tricks and intrigues. Jiang, however, has applied the more advanced art for being an emperor developed in the 2,000 years after Han Fei Tze’s art proved unsuccessful when Emperor Qin Shihuang applied it and caused the collapse of his Qin Dynasty.

That is a long topic, but I have given some description of the art in my book “Tiananmen’s Tremendous Achievements”.

Article by Chan Kai Yee


The Conundrum of Xi Jinping’s Power


Some China watcher believes that Chinese President Xi Jinping is nearly as powerful as Mao. In fact, they do not know how powerful Xi is compared with Mao.

How Mao Gradually Lost Most of His Power
Mao has absolute power before he made the mistake of the Great Leap Forward. In fact, if he was not so powerful, he simply could not launch the stupid campaign for unrealistic fast economic growth as most of the officials in charge of economic development in China advocated a moderate balanced economic growth. Before Mao’s Great Leap Forward, they achieved a growth rate of more than 10% p.a., quite fast in the world.

As those officials were led by powerful veterans Zhou Enlai and Chen Yun, Mao denounced Zhou severely as a conservative and scared Chen Yun. He had thus finally obtained consensus in CCP for his Great Leap Forward. Unfortunately, Mao’s Great Leap Forward was a disastrous blunder.

Due to the blunder, he gradually lost power to his chosen successor Liu Shaoqi and had to start the Cultural Revolution to grab power back from Liu. As most communist veterans supported Liu, Mao used first Red Guards and then Rebels to deprive veterans of their power.

To ensure success in his power struggle against Liu and Liu’s supporters, Mao needed the support of the troops so that he replaced Liu with the then Defense Minister Marshal Lin Biao as his successor and gave Lin the control of Chinese troops. When he found that Lin had grown as powerful as him, he brought down Lin. Then he had doubt about the loyalty of his powerbase Chinese troops in the face of Soviet attack.

Mao was wise to ally with the US to counter the Soviet Union. However, in fighting CCP civilian and military officials, he had used up his political capital and became unable to control the rebels. As a result, he was no able to put an end to the chaos caused by his Cultural Revolution.

Mao said that Cultural Revolution had to be carried out about every 8 years. He started his Cultural revolution in 1966 but by 1976 when he died, he was still unable to finish his Cultural Revolution. Disruption of production continued in most areas of China. As a result, there were nothing to shop except aluminum pots and enamel ware even in Hangzhou, a prosperous city before the Cultural Revolution well-known in the saying “There is paradise above in heaven while there are Suzhou and Hangzhou below”.

By that time, Mao’s power was quite limited. Xi would have been unable to achieve anything if he had had as limited power as Mao. As powerful as Mao? Nonsense.

Deng Xiaoping was powerful to order conservatives to obey him, but he did not have conservatives’ support for his reform and opening-up.

Jiang Zemin had established very strong powerbase to be the core of CCP’s third generation of leadership, but like Deng he could only silence conservatives’ opposition to his reform but had not won over their support.

In his reign for a decade, Hu Jintao had promoted lots of the members of his CYL (Communist Youth League, Hu’s powerbase) to high official posts, but he was challenged by Bo Xilai, head of the powerful conservative faction. Hu lacked the power to punish Bo when Bo’s crime of serious corruption was discovered. It was Jiang Zemin, the core of the third generation of CCP leadership, who was able to make the decision to punish Bo severely.

In spite of the decade of his rule, Hu had not become the core of CCP leadership, but Xi obtained the position as the core of CCP leadership in five years.

How has Xi succeeded in obtaining the power?

First, as soon as Xi took over the reign, he had gained the support of both reformists and conservatives by his China dream.

A couple of weeks after he took office as CCP General Secretary, Xi gained popularity by his surprise closure of all the black jails local officials set up in Beijing to imprison petitioners.. By so doing he dealt a heavy blow on powerful local officials.

He then announced that he would scrap the unpopular reeducation through labor system. Though the system was officially abolished about one and half years later, it had ceased operation soon after his announcement on abolishing it. Due to the system, police had the excessive power to imprison people in reeducation labor camp for as long as four years without any legal procedures. Before Xi’s surprise attacks at local officials and removal of the excessive power of the police, the police used the excessive power to protect corrupt officials and persecute those who dare to expose officials’ crimes of corruption. By abolishing the system and removal of police’s excessive power, Xi had dealt a heavy blow on Chinese police and laid foundation for his fight against corruption.

You may ask why Xi was able to deal heavy blows on the powerful vested interests of local officials and the police when he had just taken over the reign and had not yet set up his powerbase.

In September 2012 before Xi succeeded Hu Jintao, Xi disappeared mysteriously for two weeks. In that period, he visited all the powerful elders to gain their support for his fight against corruption and tightening of party discipline. In spite of their differences, all the elders supported Xi as they had the consensus that the rampant corruption would cause CCP to collapse. They had the experience that in spite of its larger military and US support the KMT lost the civil war to CCP due to its serious corruption.

Due to powerful elders’ support, Xi had real power as soon as he took over to enable him to deal heavy blows on local officials and the police. However, his sound powerbase was built in the five years since he took office through his successful fight against corruption, enforcement of party discipline and reorganization of Chinese military.

As a result, Xi has now become the most powerful leader in CCP history, much more powerful than Mao when Mao launched the Cultural Revolution but perhaps as powerful as the Mao before Mao made the mistake of the Great Leap Forward.

The most important battle Xi has won in obtaining absolute power is his fight against rampant corruption. As corruption has been an evil in China for centuries, it is too long a topic to discuss here.

You may wonder what about China’s collective leadership. It will be discussed in my next post “The Conundrum of China’s Collective Leadership”.

Article by Chan Kai Yee


Zhao Ziyang Called China’s Capitalism Socialism with Chinese Characteristics


On page 205 of the English translation of Zhao Ziyang’s secret memoir “Prisoner of the State”, Zhao says that the reform is the rejection and correction of the planned economy and the exclusivity of public ownership. That shows that he know well the capitalist nature of reform. However, how shall that be explained to those who were intent on observing orthodox socialism?

He says:

One possible explanation was that socialism had been implemented too early and that we needed to retrench and reinitiate democracy. Another was that China had implemented socialism without having first experienced capitalism, and so a dose of capitalism needed to be reintroduced.

Neither argument was entirely unreasonable, but they had the potential of sparking major theoretical debates, which could have led to confusion. And arguments of this kind could never have won political approval. In the worst-case scenario, they could even have caused reform to be killed in its infancy.

On page 229, he says:

I came to believe that the expression “initial stage of socialism” was the best approach, and not only because it accepted and cast our decades-long implementation of socialism in a positive light; at the same time, because we were purportedly defined as being in an “initial stage,” we were totally freed from the restriction of orthodox socialism principles. Therefore, we could step back from our previous position and implement reform policies more appropriate to China.

In the memoir, he said he got Deng’s approval for that idea. Therefore, he gave his report to the 13th Congress the title of “Advance along the Road of Socialism with Chinese Characteristics” and stated in the report that the socialism with Chinese characteristics for China meant that Chinese socialism was special as it was at the initial stage of socialism.

As Zhao has fallen into disgrace, his initial stage of socialism and socialism with Chinese characteristics were not mentioned for some time but the terms’ popularity soon recovered and now socialism with Chinese characteristics is the major part of Xi Jinping Thought on Socialism with Chinese Characteristics on a New Era. It proves Zhao’s vision and wisdom.

Jiang Zeming Further Justified Capitalism with His Three Represents
China is lucky that Zhao was replaced by another leader with vision and wisdom Jiang Zemin. Jiang further justified the pursuit of capitalism with the first of his Three Represents. For that he applies the most fundamental Marxist doctrine of production relations must be commensurate to the requirement of the development of production force. With his second Represent, he has turned the Chinese Communist Party (CCP) into a party of the whole people so that even capitalists can join CCP.

Conservatives have been entirely silenced as they are unable to negate the most fundamental doctrine of Marxism.

However, they still have their stronghold Maoism. Since they have been defeated by Jiang’s Three Represents, they have changed their strategy. They used Maoism to fight against reform and opening-up. As a result, fierce power struggle emerged between conservatives led by Bo Xilai and reformists represented by Hu Jintao.

Xi Jiping has wisely used China dream to put an end to the power struggle and rallied both leftists and reformists around him.

Some Western China watchers are of the opinion that through the 19th Congress, Xi has become as powerful as Mao. It shows their ignorance of Chinese history and politics. That is a long topic that I have to elaborate later.

Article by Chan Kai Yee


The Conundrum of Xi Jinping’s Chinese Dream


Colonel Liu Mingfu’s Arrogant China Dream of China Replacing the US as World Leader.
In 2010, Colonel Liu Mingfu published his leftist best seller “China Dream: Great Power Thinking and Strategic Posture in the Post American Era” advocating China replacing the US as world leader. He first assumed the fall of the United States and believed that China would surpass the US in economy. In fact, in 2010, China has quite a few problems in maintaining its economic growth while the US, though failed to achieve much economic growth, still had an economy much larger and advanced than China. It was indeed too early for Liu to predict the fall of the US and the rise of China to replace the US as world leader. To replace the US as world leader, China has to be stronger not only economically but also militarily than the US; therefore, Liu advocates China’s military instead of peaceful rise in his book.

Lots of Chinese people, especially leftists, are very fond of Liu’s ideas. They vied with one another to buy his books and soon all the one million printed copies were sold out. However, like his predecessors Deng Xiaoping and Jiang Zemin, the then CCP general secretary Hu Jintao upheld China’s peaceful rise and did not like Liu’s idea of China’s military rise. Hu did not allow any reprint of Liu’s book.

Xi Jinping Uses China Dream to Unite a Deeply Split China
In order to overcome conservatives resistance to reform and especially to eliminate rampant corruption, Xi Jinping disappeared for two weeks to win support from powerful elders. Soon after Xi Jinping’s reappearance after his mysterious absence in September 2012, Jiang came to Beijing from Shanghai. On September 27, 2012, he presided over an expanded meeting of CCP Politburo and adopted a resolution to punish Bo severely.

However, Jiang only deprived the powerful conservative faction of its leader Bo Xilai but the debate between the conservatives and reformists over evaluation of Mao remained unresolved. The conservative faction remained large and powerful and Maoism remained popular among quite a few people. China remained a deeply split nation over the evaluation of Mao. In Xi Jinping’s further thorough economic reform, He had to overcome not only the resistance from vested interests, especially the powerful group of corrupt officials, but also the fierce opposition from the powerful conservative faction.

For example, not long before the 18th CCP Congress, Li Peng, the arc conservative, published a new book to stress government control of market. Li’s book obviously aims at opposing in theory the reformists’ reform of further economic liberalization. Hu Jintao and Wen Jiabao certainly opposed Li’s ideas. However, two weeks after publication on July 12, 2012, CCP’s mouthpiece People’s Daily carried a full-page article to promote Li’s book and denounce mainstream Western economic ideas that advocate free market. That showed conservatives’ strength in CCP’s media. China’s further reform was encountering serious resistance from the conservatives.

The combined strong resistance from vested interests and the conservatives made the reformists unable to move even a step forward in their further reform. That was why Hu Jintao and Wen Jiabao had made no significant progress in the further reform they advocated in Hu’s Scientific Outlook on Development.

Xi was fully aware that he and the reformists behind him were not strong enough to surmount the obstacles to reform set by both the vested interests and the conservative faction. He had to adopt the strategy to split his enemies so that he might destroy them one by one as he was stronger than each of the split sections of his enemies.

Moreover, Xi believes that his most important task is to win over those who opposed the reform and make them support the reform as the success of his fight against corruption and for reform depends on popular support. Through analysis, he found that most of the conservatives shared reformists’ dream to make China rich and strong. The conservatives differed from reformists in the ways to realize the dream. They believe the communist way of public ownership and planned economy is the correct way while the reformists advocated a capitalist way to expand private sector and remove state-owned sector’s monopoly of Chinese economy.

Xi was impressed by the success of PLA senior colonel Liu Mingfu’s leftist book “China Dream: Great Power Thinking and Strategic Posture in the Post American Era”, a book that rejects reformists’ idea of China’s peaceful rise and advocates, instead, China’s “military rise”. Liu wants China to intensify its military modernization in order to replace the US as world greatest military power. The book became instant bestseller with 1 million copies sold out as soon as it was published. However, the reformists under Hu Jintao banned reprinting of the book due to its leftist ambition that pursues China’s military instead of economic rise. The success of the book proves that most conservatives are patriots that Xi may win over.

With that in mind Xi Jinping invented a way to exploit conservatives’ patriotism to win their support for his reform and fight against corruption by turning Liu Mingfu’s China dream into a dream for the great rejuvenation of the Chinese nation.

Soon after he became CCP general secretary, he brought all the Politburo Standing Committee (PSC) members to visit “The Road Toward Renewal” exhibition in Beijing. There, he said that the realization of the great rejuvenation of the Chinese nation was the greatest Chinese dream for the Chinese nation now and called on people to strive to realize the dream.

At one stroke, Xi Jinping had rallied around him both the reformists who advocate turning China into a great economic power and the conservatives who advocate turning China into a great military power. Moreover, the vested interests that opposed further reform due to their interests may also think that they may be benefited when China becomes powerful. Xi’s Chinese dream had also reduced their opposition.

In order to win over the conservatives, Xi allowed reprinting of Liu Mingfu’s bestseller. In addition, when Xi Jiping visited Chinese navy on April 11, 2013, he talked about the dream for a militarily powerful China to emphasize that his Chinese dream for a powerful China includes that for a militarily powerful China.
Xi Jinping used his Chinese dream to immediately turn China into a united nation from a nation deeply split between reformists and conservatives over the evaluation of Mao. Some people wondered how Xi was able to punish very powerful generals and officials who though retired, still controlled China’s military and armed police. They did not know that Xi’s Chinese dream has enabled him to have the support of lots of powerful conservatives in the Party who helped Xi eliminate corruption as they shared Xi’s dream to make China rich and strong and hated corruption that hinder the realization of the China dream.

Article by Chan Kai Yee


Fierce Power Struggle before Xi Jinping Took Over the Reign


I have mentioned in my previous posts the fierce debates between conservatives and reformists over the capitalist and socialist nature of China’s reform and opening-up. The conflicts between conservatives and reformists continued until Chinese President took over the reign. How did the debates end in the first place?

How Jiang Zemin Put an End to the Debates
Since Deng Xiaoping began his reform and opening up capitalist in nature, there had been fierce debates between reformists and conservatives about the nature of the reform and opening up. Conservatives denounced the reform for its capitalist nature, but Deng and the reformists under him could not deny. Deng knew well as Marxism-Leninism and Mao Zedong Thought were the dominant ideology at that time, there was no hope for him to defend his pursuit of capitalism against Marxism and Mao Zedong Thought. He resorted to a stalling strategy and told conservatives to wait and see the results of the reform and opening up.

After Tiananmen Protests, conservatism prevailed. Deng had to apply his power as paramount leader (“core of collective leadership” according to his term of expression) to force officials to carry on the reform. His successor Jiang Zemin had to play every trick to overcome conservatives’ opposition in order to carry on Deng’s reform while establishing his power base.

However, when Jiang Zemin and Zhu Rongji had achieved obvious successes in conducting reform and opening up, the facts of successes silenced opposition. However, Jiang and the reformist theorists knew that ideology was very important in China. Feudal dynasties could each survive for two to three centuries due to the ideological dominance of Confucianism. Jiang had to justify the reform and opening up with Marxism, the dominant ideology in China, to ensure the continuance of reform and CCP’s rule in China. To do so, he used the most fundamental Marxist doctrine that production relations shall suit the requirements of the development of advanced production force.

According to Marx, at first capitalist production relation the private ownership of means of production (enterprises) suited the requirements of the development of advanced productive force so that it replaced the feudal one and brought about prosperity. However, there is the basic contradiction of capitalism that the production is for the society but the means of production (the enterprises) are owned privately by capitalist entrepreneurs, who often make decisions on production for their own profits in disregard of the needs of the society, resulting in overproduction and overcapacity that gave rise to cyclical economic crisis. Marx believed that by that time, the capitalist production relation no longer suited the requirements of the development of advanced production force and should be replaced by communist production relations of public ownership and planned economy.

Marx instructed communists that they should represent the requirements of the development of the advanced productive force and carry out a revolution necessary to put all means of production (enterprises) under public ownership as required by the development of the advanced productive force so that the state can plan the production in accordance with the needs of the society. A planned economy will be the most efficient, Marx believed. Then as the production relations suit the requirements of the development of the advanced productive force, the economy will take off. There will be abundance of all kinds of products to meet the needs of all the people. Everyone including former capitalists whose assets have been confiscated will be benefited. So, Marx said that the proletariat (the working class) would emancipate the entire human race.

However, Marx was not able to foresee that public ownership and planned economy were good in theory, but have been proved inefficient by practice everywhere in the world.

The first of Jiang’s Three Represents goes deeper in Marxist theory for the communists to represent the requirements of the development of advanced productive force. It sums up the lessons of the failures of public ownership and planned economy and the successful experience of China’s capitalist reform and opening up to prove that capitalism instead of communist public ownership and planned economy suits the requirements of the development of advanced productive force in China now. That was why China remained poor and backward for three decades when it had monolithic public ownership and planned economy, but has become rich and prosperous in three decades since it began to carry out its reform and opening up capitalist in nature.

Jiang has thus justifies with Marxist theory Chinese communists’ pursuit of reform and opening up capitalist in nature. However, the Three Represents have not dealt with Mao Zedong Thought, which lots of people still regard as the doctrines China has to observe.

Jiang can say his reform and opening up conform to Marxism, but cannot say that they conform to Mao Zedong Thought that advocate public ownership and planned economy as CCP’s dogma before the reform. Jiang should have negated Mao Zedong Thought but could not as Mao was too popular to negate among lots of Chinese people.

However, Marxist theory is quite abstruse to learn even for secondary school graduates. The fundamental Marxist economic theory, useless in modern economic environment is not taught even in most tertiary schools. As a result, lots of Chinese, even CCP members, know nothing about such theory. They still hold Mao in high esteem as they regard Mao as the symbol of the great Chinese nation perhaps due to Mao’s victory over the strongest nation the US in Korean War though Mao’s doctrines of monolithic public ownership and planned economy were refuted by Jiang’s Three Represents.

Fierce Struggle between Reformists and Conservatives
In his 2010 New Year’s message on New Year’s Eve, Hu Jintao, the then Chinese Communist Party (CCP) General Secretary, said: “In the upcoming new year, we will unswervingly uphold the great banner of socialism with Chinese characteristics, further implement the Scientific Outlook on Development under the guidance of Deng Xiaoping Theory and the important thought of Three Represents,…”

Hu put forth his Scientific Outlook on Development as China had to blaze new trail to replace its old way of pursuing export- and investment-geared growth. China’s export market was shrinking due to world economic recession and quite a few local governments and SOEs might become insolvent as they had borrowed too much for investment-geared growth. Their blind investment had given rise to excessive production capacity in some industries, especially steel and building material industries.

For sustainable economic growth, Hu had to uphold reform and opening up and overcome conservatives’ resistance to further reform and opening up based on Maxism-Leninist theories on public ownership and planned economy, especially Mao Zedong’s extreme leftist thoughts that absolutely ban private business operations of even family private farming or individual hawker’s business.

In CCP’s and China’s constitutions, the guiding ideologies at that time were Marxism-Leninism, Mao Zedong Thought, Deng Xiaoping Theory and the important thought of Three Represents, but Marxism-Leninism and Mao Zedong Thought were conspicuously missing in Hu’s New Year’s Eve message.

Hu’s above-mentioned words became CCP jargon and were frequently repeated by him and other Chinese leaders and in CCP documents in the last couple of years when Hu was in charge. The then premier Wen Jiabao repeated the exact wording in his speech in celebration of the 61st anniversary of the founding of the People’s Republic of China in 2010.

Hu’s omission was necessary not only for further reform but also for preserving what China had already achieved through reform and opening up. Hu was very clear that opponents to China’s reform may use Mao Zedong’s socialist doctrines of public ownership and collective farming to denounce the reform that not only allows but encourages private enterprises and farming.

Conservatives were much upset by the omission as they still held Mao in high esteem and quite a few of them remained Mao worshipers.

According to a survey in 40 cities including large cities such as Beijing, Shanghai, Guangzhou and Wuhan in 2008, 11.5% of the total number of families there had Mao’s statutes or portraits for worship. Those who had statues or portraits of Buddha, God of Wealth or local god of the land for worship accounted for much smaller percentages. Worship of Mao remained hot among common Chinese people. It was especially so when corruption was rampant at that time. Even those who did not worship Mao had nostalgia of Mao era when egalitarianism prevailed and there were no rich-poor gap or the uncertainty caused by the reform and opening-up in people’s lives.

In 2009, the year of the 60th anniversary of the establishment of the People’s Republic of China (PRC), there was “Mao Zedong Craze” as Mao was PRC founder. Mao’s homeland Shaoshan became a hot red travel spot with thousands of visitors every day. Such enthusiasm remained hot even in late 2012 three years after the 60th anniversary.

Bo Xilai exploited Hu’s omission to rally around him the conservatives who worshiped Mao or held Mao in high esteem in addition to true conservatives who oppose Jiang’s theory. He launched a nation-wide sing-red campaign to advocate Mao’s values and even sent quotation of Mao’s works to all the mobile phones in Chongqing. He had thus become the head of the large and powerful conservative faction in China and launched a fierce power struggle with Hu’s reformists over the evaluation of Mao. Hu and his reformist faction, though in power in China at that time lacked the strength to defeat Bo’s strong conservative faction. They were even unable to punish Bo in spite of the discovery of Bo’s crimes of corruption.

However, if Bo and his faction had remained powerful, Xi Jinping would not have had the power to conduct his anti-corruption campaign or deepen China’s reform. He went to Jiang to request the removal of Bo. Jiang owes Bo’s father Bo Yibo, a deceased powerful CCP elder, for his help in establishing Jiang’s position as the core of CCP leadership when he was alive, but Jiang could not allow Bo to use Maoism to oppose his Three Represents, reform an opening up. He decided to punish Bo severely so as to remove a major obstacle to Xi’s fight against corruption and for further reform.

In September 2012, Jiang came to Beijing to preside over an expanded meeting of CCP Politburo and made the decision to punish Bo severely, but he had not resolve the power struggle between conservatives and reformists. He left the tricky job to Xi his chosen successor to him as the core of CCP leadership.

Article by Chan Kai Yee.


The Conundrum of Xi Jinping’s Chinese Dream


Liu Mingfu, conservative author of leftist book “Chinese Dream”, the term Xi Jinping has used to unite reformists and conservatives

I promised in my post “The Conundrum of Jiang Zemin Justifying Pursuit of Capitalism with Marxism” on March 30 that I will describe how Chinese president Xi Jinping put an end to the fierce struggle between conservatives and reformists.

In that post I describe how Jiang Zemin applied the fundamental Marxist theory to justify China’s reform and opening up capitalist in nature with his Three Presents. However, Jiang “cannot say that they conform to Mao Zedong Thought that advocate public ownership and planned economy, which was CCP’s dogma before the reform. Jiang should have negated Mao Zedong Thought but could not as Mao was too popular to negate among lots of Chinese people.

“Marxist theory is quite abstruse to learn even for secondary school graduates. The fundamental Marxist economic theory is not taught even in most tertiary schools as it is useless in modern economic environment. As a result, lots of Chinese, even CCP members, know nothing about such theory. They still hold Mao in high esteem as they regard Mao as the symbol of the great Chinese nation perhaps due to Mao’s victory over the strongest nation the US in Korean War though Mao’s doctrines of monolithic public ownership and planned economy were refuted by Jiang’s Three Represents.

Fierce Struggle between Reformists and Conservatives
In his 2010 New Year’s message on New Year’s Eve, Hu Jintao, the then Chinese Communist Party (CCP) General Secretary, said: “In the upcoming new year, we will unswervingly uphold the great banner of socialism with Chinese characteristics, further implement the Scientific Outlook on Development under the guidance of Deng Xiaoping Theory and the important thought of Three Represents,…”

Hu put forth his Scientific Outlook on Development as China had to blaze new trail to replace its old way of pursuing export- and investment-geared growth. China’s export market was shrinking due to world economic recession and quite a few local governments and SOEs might become insolvent as they had borrowed too much for investment-geared growth. Their blind investment had given rise to excessive production capacity in some industries, especially steel and building material industries.

For sustainable economic growth, Hu had to uphold reform and opening up and overcome conservatives’ resistance to further reform and opening up based on Maxism-Leninist theories on public ownership and planned economy, especially Mao Zedong’s extreme leftist thoughts that absolutely ban private business operations of even family private farming or individual hawker’s business.

In CCP’s and China’s constitutions, the guiding ideologies at that time were Marxism-Leninism, Mao Zedong Thought, Deng Xiaoping Theory and the important thought of Three Represents, but Marxism-Leninism and Mao Zedong Thought were conspicuously missing in Hu’s New Year’s Eve message.

Hu’s above-mentioned words became CCP jargon and were frequently repeated by him and other Chinese leaders and in CCP documents in the last couple of years when Hu was in charge. The then premier Wen Jiabao repeated the exact wording in his speech in celebration of the 61st anniversary of the founding of the People’s Republic of China in 2010.

Hu’s omission was necessary not only for further reform but also for preserving what China had already achieved through reform and opening up. Hu was very clear that opponents to China’s reform may use Mao Zedong’s socialist doctrines of public ownership and collective farming to denounce the reform that not only allows but encourages private enterprises and farming.

Conservatives were much upset by the omission as they still held Mao in high esteem and quite a few of them remained Mao worshipers.

According to a survey in 40 cities including large cities such as Beijing, Shanghai, Guangzhou and Wuhan in 2008, 11.5% of the total number of families there had Mao’s statutes or portraits for worship. Those who had statues or portraits of Buddha, God of Wealth or local god of the land for worship accounted for much smaller percentages. Worship of Mao remained hot among common Chinese people. It was especially so when corruption was rampant at that time. Even those who did not worship Mao had nostalgia of Mao era when egalitarianism prevailed and there were no rich-poor gap or the uncertainty caused by the reform and opening-up in people’s lives
.
In 2009, the year of the 60th anniversary of the establishment of the People’s Republic of China (PRC), there was “Mao Zedong Craze” as Mao was PRC founder. Mao’s homeland Shaoshan became a hot red travel spot with thousands of visitors every day. Such enthusiasm remained hot even in late 2012 three years after the 60th anniversary.

Bo Xilai exploited Hu’s omission to rally around him the conservatives who worshiped Mao or held Mao in high esteem in addition to true conservatives who oppose Jiang’s theory. He launched a nation-wide sing-red campaign to advocate Mao’s values and even sent quotation of Mao’s works to all the mobile phones in Chongqing. He had thus become the head of the large and powerful conservative faction in China and thus launched a fierce power struggle with Hu’s reformists over the evaluation of Mao. Hu and his reformist faction, though in power in China at that time lacked the strength to defeat Bo’s strong conservative faction. They were even unable to punish Bo in spite of the discovery of Bo’s crimes of corruption.

However, if Bo and his faction had remained powerful, Xi Jinping would not have had the power to conduct his anti-corruption campaign or deepen China’s reform. He went to Jiang to request the removal of Bo. Jiang owes Bo’s father Bo Yibo, a deceased powerful CCP elder, for his help in establishing Jiang’s position as the core of CCP leadership when he was alive, but Jiang could not allow Bo to use Maoism to oppose his Three Represents, reform an opening up. He decided to punish Bo severely so as to remove a major obstacle to Xi’s fight against corruption and for further reform.

Xi Jinping Uses Chinese Dream to Unite a Deeply Split China
Soon after Xi Jinping’s reappearance after his mysterious absence in September 2012 (a conundrum to be bared later), Jiang came to Beijing from Shanghai. On September 27, 2012, he presided over an expanded meeting of CCP Politburo and adopted a resolution to punish Bo severely.

However, Jiang only deprived the powerful conservative faction of its leader Bo Xilai but the debate between the conservatives and reformists over evaluation of Mao remained unresolved. The conservative faction remained large and powerful and Maoism remained popular among quite a few people. China remained a deeply split nation over the evaluation of Mao. In Xi Jinping’s further thorough economic reform, He had to overcome not only the resistance from vested interests, especially the powerful group of corrupt officials, but also the fierce opposition from the powerful conservative faction.

For example, not long before the 18th CCP Congress, Li Peng, the arc conservative, published a new book to stress government control of market. Li’s book obviously aims at opposing in theory the reformists’ reform of further economic liberalization. Hu Jintao and Wen Jiabao certainly opposed Li’s ideas. However, two weeks after publication on July 12, 2012, CCP’s mouthpiece People’s Daily carried a full-page article to promote Li’s book and denounce mainstream Western economic ideas that advocate free market. That showed conservatives’ strength in CCP’s media. China’s further reform was encountering serious resistance from the conservatives.

The combined strong resistance from vested interests and the conservatives made the reformists unable to move even a step forward in their further reform. That was why Hu Jintao and Wen Jiabao had made no significant progress in the further reform they advocated in Hu’s Scientific Outlook on Development.

Xi was fully aware that he and the reformists behind him were not strong enough to surmount the obstacles to reform set by both the vested interests and the conservative faction. He had to adopt the strategy to split his enemies so that he might destroy them one by one as he was stronger than each of the split sections of his enemies.

Moreover, Xi believes that his most important task is to win over those who opposed the reform and make them support the reform as the success of his fight against corruption and for reform depends on popular support. Through analysis, he found that most of the conservatives shared reformists’ dream to make China rich and strong. The conservatives differed from reformists in the ways to realize the dream. They believe the communist way of public ownership and planned economy is the correct way while the reformists advocated a capitalist way to expand private sector and remove state-owned sector’s monopoly of Chinese economy.

Xi was impressed by the success of PLA senior colonel Liu Mingfu’s leftist book “China Dream: Great Power Thinking and Strategic Posture in the Post American Era”, a book that rejects reformists’ idea of China’s peaceful rise and advocates, instead, China’s “military rise”. Liu wants China to intensify its military modernization in order to replace the US as world greatest military power. The book became instant bestseller with 1 million copies sold out as soon as it was published. However, the reformists under Hu Jintao banned reprinting of the book due to its leftist ambition that pursues China’s military instead of economic rise. The success of the book proves that most conservatives are patriots that Xi may win over.

With that in mind Xi Jinping invented a way to exploit conservatives’ patriotism to win their support for his reform. He expands Liu Mingfu’s China dream into a dream for the great rejuvenation of the Chinese nation.

Soon after he became CCP general secretary, he brought all the Politburo Standing Committee (PSC) members to visit “The Road Toward Renewal” exhibition in Beijing. There, he said that the realization of the great rejuvenation of the Chinese nation was the greatest Chinese dream for the Chinese nation now and called on people to strive to realize the dream.

At one stroke, Xi Jinping had rallied around him both the reformists who advocate turning China into a great economic power and the conservatives who advocate turning China into a great military power. Moreover, the vested interests that opposed further reform due to their interests may also think that they may be benefited when China becomes powerful. Xi’s Chinese dream had also reduced their opposition.

In order to win over the conservatives, Xi allowed reprinting of Liu Mingfu’s bestseller. In addition, when Xi Jiping visited Chinese navy on April 11, 2013, he talked about the dream for a militarily powerful China to emphasize that his Chinese dream for a powerful China includes that for a militarily powerful China.

Xi Jinping used his Chinese dream to immediately turn China into a united nation from a nation deeply split between reformists and conservatives over the evaluation of Mao. Some people wondered how Xi was able to punish very powerful generals and officials who though retired, still controlled China’s military and armed police. They did not know that Xi’s Chinese dream has enabled him to have the support of lots of powerful conservatives in the Party who helped Xi eliminate corruption as they shared Xi’s dream to make China rich and strong and hated corruption that hinder the realization of the Chinese dream.

Article by Chan Kai Yee