[Marxism] Anthony Brain on snapshot which Keith Brasher article gives of main dynamics within China!

MARIAN BRAIN marian.brain at btinternet.com
Fri Nov 19 16:34:24 MST 2010

The Chinese Bureaucracy has gained the most from trade with Imperialism.  There 
is still room for them to benefit with continuing trade but they are telling 
American Imperialism in particular they will not give up their privileges which 
Bradsher reports.    They are in a position to do enormous damage to American 
Imperialism if the U.S. protectionists win out.  It is due to the superiority of 
a planned economy which explains why China is leading such an export growth in 
Asia; Africa; Middle East; Latin America; and even whole parts of Europe.    
China also has an advantage of what Trotskyist Ernest Mandel called the 
Bourgeois norms of distribution in terms of world trade with relation to 
American Imperialism in particular due to an over-valued Dollar.  Bradsher 
points out how this has strengthened Chinese producers of telecommunication 
equipment; cars; and solar panels.  Imperialism allowing the Chinese workers’ 
state to become important to an international division of labour since the 1980s 
is another indication of Capitalism’s decay.  One consequence of American 
Imperialism losing the Iraq and Afghan wars is that they have massively built up 
their debts and over-valuing the Dollar.  Oil in the Middle East has become more 
expensive as a direct result of American Imperialism losing the Iraq war.  The 
overthrow of Yeltsin on January 1st 2000 represented that wing of Russian 
Stalinism who did not want Imperialism gaining more ownership of their natural 
resources, which culminated in the Oligarch Mikhail K. being arrested and 
imprisoned in the autumn/winter of 2003. 

Bradsher describes the “political clout” of Chinese Industrial Bureaucrats in 
ensuring that 90% of borrowing goes into nationalised industries.  This is where 
a whole section of the Bureaucracy’s privileges are based.  Mandel when he wrote 
“Power and Money” documented all the main Bureaucratic layers within the Soviet 
Bureaucracy. Mandel argued the main contradictions within the Bureaucratised 
workers’ states are between the non-Capitalist mode of production and the 
Bourgeois norms of distribution.  There has to be some modification of this 
analysis due to Capitalist inroads on top of Bureaucratic pillage within Eastern 
Europe is led to massive socio-economic dislocations.  Russia since 2000 has 
recovered due to Capitalists being weakened internally and those extreme 
Bureaucratic pillagers being reigned in partly to stop revolutionary upheavals 
by the workers.  Eastern Europe remains workers’ states because the Capitalist 
firms have not completed the overthrow of Bureaucrats who base their privileges 
on nationalised industries/workplaces.
Capitalist inroads (except when millions were laid off before 1989 Tinaman 
Square protests and layoffs during 1994) have not had the same damaging effect 
on China that it has on Eastern Europe and Russia.   This is primarily because 
the Capitalist elements played  a supplementary role  in supplying goods to the 
workers’ state.  Trotskyists oppose the Capitalist inroads as unnecessary 
because billions/trillions could be saved once the workers overthrow Stalinism 
through a successful Political revolution.  As Trotsky; Cannon; and Joseph 
Hansen stressed in their writings you have to distinguish between the norms of 
workers’ states and their reality composed on internal dialectical 

If American Imperialism goes protectionist against the Chinese Bureaucracy  it 
could severely weaken the Capitalist elements within China.  Imperialism and the 
Capitalist elements within China want interest rates to be increased so their 
profits can increase and cause massive dislocations to nationalised 
industries/workplaces.  If Imperialism /Capitalist elements cannot immediately 
overthrow a workers’ state they will want to cause the maximum damage, laying 
the basis for a Capitalist counter-revolution.  Several months ago I did some 
research on the Chinese banking system, which showed that the Bureaucrats nearly 
control almost all of them through Nationalised banks through 3 or 4 
organisations.  Capitalist banks are a very tiny fraction of Chinese banking.  
Today the Chinese Bureaucracy  has increased taxation on commercial banks.  
These commercial banks according to  Bradsher provide the main funds for China’s 
2.65 Trillion dollars worth of foreign reserves.  Bradsher also describes the 
beginning of a crackdown on Capitalist property developers with the central bank 
(who go under the name of People’s Bank) with threats to stop then buying 
 further real estate.  The Ministry of Commerce also promised to tighten 
regulations into investments within industry and other big projects.  

There are moves by the workers beginning to challenge the Bureaucracy’s rule as 
shown by the strikes which broke out this summer.  The Bureaucracy is feeling 
pressure as Bradsher notes to introduce a wide range of food price controls.  
Workers are also demanding more available supplies of cheap food and fuel.     

More information about the Marxism mailing list