the reformers passed the Contract Labor Law to legally abolish the permanent employment system in state enterprises. All of Deng's reform programs were carried out by imposing on the masses legal (or illegal) action from above. The reformers prohibited mass movements of any kind. Deng's reform created many new contradictions in Chinese society. Above all, the contradiction between the party bureaucrats and the masses stood out as the principal one. Without a mass movement, these contradictions had no outlet for expression much less resolution. In the spring of 1989, these contradictions reached such a height that students began to demonstrate in China's major cities. Many millions of urban residents also joined in to express their discontent and to voice their complaint. People in China were following their long tradition of using mass movements to express their discontent, the only difference this time was that they did it spontaneously without the party's sponsorship. When the current Chinese regime decided that such direct confrontation could no longer be tolerated, they moved in the troops and ended it with the June 4th Tiananmen massacre. Now, seven years after the massacre, the abuse of power and privileges by the bureaucrats, which was the main target of the demonstration, has not only continued but has become even more excessive. Even though the propaganda in newspapers has repeatedly announced that those who committed economic crimes wouid be duly punished by law, people in China are well aware that only those who committed minor crimes were persecuted, because in these cases the guilty ones did not have the backing of the higher-up. On the other hand, many cases of corruption involving the embezzlement of billions (of RMB) of public funds have been covered up, because the guilty ones in these cases had links to top-ranking officials in the CCP. Without a mass movement, there is no vehicle to expose the crimes committed by these top officials.
We think that those who possess power have opportunities to enrich themselves by going along with the current regime. This opportunity existed objectively in the past despite the fact many cadres accepted the ideology of "serving the people" or "serving their country" and that they looked down on the idea of "enriching themselves." In the end,
the objective social position was more important than personal belief. Before the reform began, the tendency to convert this concentration of power into something useful for the holders already existed. Deng's reform gave these power holders the green light. His reform legislation legitimized the conversion of state property into bureaucratic capital. After the reform, the bureaucrats at the national and provincial levels were no longer just in control of the surplus value; they have used the surplus to expand their bureaucratic capital. Thus, these bureaucrats have, in fact, become the exploiting class. Looking back, when Mao named a small handful of high-ranking party members as targets during the Cultural Revolution, he might have deliberately done so as a tactic to isolate the top leaders in the Liu-Deng camp.
E. Could New Revolutionary Forces Be Revived Within the Chinese Communist Party?
Before we address this question, we need to give a short summary on the four observations we made on the CCP above and relate them to the overall analyses of this paoer. It seems clear that upon the completion of the land reform, the top leadership within the CCP became divided on which direction China should take in developing her society. Within the CCP, Mao and his followers chose socialism as the goal of China's transition, while Liu and Deng and their followers chose capitalism as the goal of China's transition. Looking back now, it seems clear that the majority of the CCP's top leaders did not fully understand the meaning of socialist transition or what it would take to reach socialism. When Liu and Deng pushed forward their capitalist projects, they disguised them as a better way to reach socialism, because they claimed that these projects would develop productive forces faster. As far as their logic went, developing the productive forces faster would help build a strong China to defend socialism. As we said earlier, many communist leaders had joined the revolution because they regarded the CCP as the only hope for China's survival. Thus, building a strong China had great appeal to them. The majority of rank-and-file party members trusted Mao's leadership and followed the CCP's policies in the land reform and in the collectivization movement that followed.
Throughout the long and hard struggle in the revolutionary war, the workers and peasants came to trust the CCP and its leader, Mao Zedong. Their trust was two-fold: one, the CCP was on their side; two, the CCP had the correct strategy to lead them to their liberation. This trust continued after the establishment of the people's government in 1949. They chose to follow the leadership of the CCP in the construction of a socialist country. They had not realized, however, until the Cultural Revolution that the top leadership within the CCP was divided among themselves.
During the socialist transition, the socialist projects benefited the workers and the majority of peasants and were implemented with their support. The CCP under Mao's leadership sponsored mass movements to solicit supports from the workers and peasants. Mao's strategy of the worker-peasant alliance helped consolidate their support for the proletarian line. We think that the proletarian line dominated from 1949 to 1978 not because the majority of high-level party officials within the CCP supported it, but because Mao and a small but strong group of his supporters within the top leadership of the CCP and the majority of the rank-and-file party members continued to solicit the masses for their support for the socialist projects. If this is correct, then it is doubtful that we can say that during the socialist transition there was the dictatorship of the proletariat. Throughout this period, many times Liu and Deng were able to push forward their capitalist projects with their supporters in the CCP (also a minority) but only to find their projects smashed during the recurrent mass movements.
In our analysis of the development of bureaucracy in China earlier, we discussed the new material base of bureaucracy after the CCP seized power. The high ranked party members who are also high level cadres and chief administrators in the state machine have held tremendous amount of power since the beginning of the People's Republic. Up to 1978 their power was held in check, to large extent, by the recurrent mass movements. The majority of these party leaders did not abuse their power. They, as a group, with the help of the middle and lower ranked cadres, contributed a great deal in running the country and managing production. However, their position as state functionaries who had power at their disposal limited their outlook. They saw running the country
smoothly and keeping the production up in state enterprises and doing a good job in ensuring the supplies of food and other necessities of life as their duty to socialism. Their idea of socialism was that once the means of production were transferred to the state and to the collectives, the transition to socialism was complete. They often lacked the understanding of the necessity for continuing change. They thus played an important role in maintaining the status quo and in the perpetuation of a hierarchy of functionaries at different levels of government. Moreover, they often resisted changes, if they saw these changes threatened their power base. During the Cultural Revolution, some of them were being criticized for their lack of cooperation in implementing new policies. It was said that they would "lie down and play dead" when they resisted implementing policies that they did not like. Mao also criticized high-level officials in the Department of Public Health for turning themselves into old-time Mandarins who were out of touch with problems concerning the public health of the general population.
It was the Cultural Revolution that brought the proletarian line and the bourgeois line into sharp focus. The majority of workers and peasants and the rank-and-file party members had just begun to understand the difference between the socialist projects put forward by Mao through mass movements and the capitalist projects push forward by Liu and Deng in the top-down fashion. During the 16 years of Deng's reform, the maiority of workers and peasants, through their continuing struggle against the capitalist projects imposed on them by the reformers, have come to understand much more the true nature of Deng's reform and to appreciate what they had lost. This is evident from the love and respect they have expressed toward Mao in recent years.
It seems clear now in hindsight that during the Cultural Revolution Mao was the minority in the CCP leadership. As we said earlier, the Cultural Revolution made attempts to find an alternative to the power structure that existed in the CCP and in the state machine, but it did not succeed. As the Cultural Revolution progressed, the majority of high-ranking party members saw their power base threatened, and thus did not support it. It seems also clear now that Deng's reform since 1979 has had the support of the high-ranking party elite within the CCP. In the beginning of Deng's reform, high-ranking party members who were committed to the proletarian line (Chen Yungkui was one example) were kicked out of the CCP. Deng's support came from a coalition of different groups who found a common interest in the capitalist projects in Deng's reform. Only with their support has Deng's reform, clearly opposing the interests of the workers and peasants, been able to go this far. This coalition took advantage of the contradictions that had developed in the mid-1970's (see explanation earlier) and solicited the support of those who would gain from the implementation of capitalist projects. During the sixteen years of Deng's reform, the contradictions within the Chinese society has been sharpened. The principal contradiction is now between the broad masses and the high ranking corrupted party/government officials who enriched themselves by robbing the people and by selling China's interest to the foreign monopoly capital. In the process of carrying out Deng's reform, differences developed in the coalition that supported Deng. To the right of Deng were those who did not think Deng's reform was deep enough or fast enough to transform China toward capitalism. They used the dissatisfaction of the students and masses to voice their own discontent in 1989 without success. During the past few years, when Deng's reform encountered insurmountable difficulties, party elites on the left of Deng began to express their concerns. These party elites see the danger of continuing deterioration of the CCP's reputation and influence. On the one hand, they realize that the CCP has lost the support of the broad masses; on the other hand, they see that as private ownership and joint ventures with foreign capital continue to increase, the emerging new capitalist class are demanding political representation. Thus, they fear that the CCP may follow the fate of the Communist Party of the former Soviet Union and face eventual demise. It seems liikely that after Deng dies, this group may gain control of the CCP. If it does, it may institute polices that would pull back some of Deng's reform and clean up some of the corruption. However, it is questionable that this group of party elites would reverse the transition from capitalism to socialism and trust the masses enough to involve them in this fundamental change.
This is not to deny that within the CCP there remain many members who still believe in social-
ism and see the harm Deng's reform has done to China. However, these party members have not been able to oppose Deng's reform. What they will be able to do in the future remains to be seen. On the other hand, during the past sixteen years the CCP has recruited a large number of new members who have no commitment to sociaiism and only see joining the CCP as a way for self-advancement. These CCP members will also play a role in the future development.
In this essay, we presented our analysis of the socialist transition in China and the reverse of the transition from socialism to capitalism. The analysis is based on the concrete experiences of China in the past forty-some years. We quoted what Lenin said about the road to socialism earlier in this essay. He said, "We do not claim that Marx or the Marxists know the road to socialism in all its completeness. That is nonsense. We know the direction of this road, we know what class forces lead along it, but concretely and practically it will be learned from the experiences of the millions who take up the task." During the past eighty years, thousands of millions had taken up the task to advance their societies toward sociaiism. Unfortunately, the first round of attempts to build socialism failed. We need to learn from their valuable experiences, because thousands of millions will take up the task again in the future. Socialism has not failed, because we have not yet entered its threshold.
"Peasants and Workers" in Collected Works, vol. 21, p. 133, New York: International Publishers, 1932.
See Karl Marx, Letter to P. V. Annenkov, December 28. 1846 in Karl Marx and Frederick Engels, Selected Works, vol. 2, fifth impression, Foreign Languages Publishing House, Moscow, 1962, pp. 441-452. Also, see Karl Marx, On Proudhon, letter to J. B. Schweitzer, January 24, 1865, in Karl Marx, The Poverty of Philosophy, Peking, Foreign Languages Press, 1978, p. 215.
The examples we use to explain the socialist and capitalist projects in the collective sector are all related to agriculture. However, there were also industries in the collective sector. Also, there were many collectives in cities, when in the 1970's neighborhoods organized themselves to produce small industrial products.
See Su Xing, "The Two Line Struggle, Socialist vs. Capitalist, after the Land Reform," Jing Jin Yan Jiu, 1965, no. 7, p. 24.
Thomas G. Rawski, Economic Growth and Employment in China (published for the World Bank, Oxford University Press, 1979), pp. 7-8.
The examples we use to explain the socialist project in the state sector are in state-owned industries. State farms are also socialist projects.
Mao Tsetung, "On State Capitalism," July 9, 1953, in Selected Works of Mao Tsetung, Peking: Foreign Languages Press, 1977, Vol. V, p. 101.
See William Hinton, Fanshen, A Documentary of Revolution in a Chinese Village, Vintage Books, 1966.
See note 4.
For Mao's view on agricultural cooperative, see "On Agricultural Cooperative," (July 31, 1955), "Agricultural Cooperative Movement Must Rely on Party Members and Poor and Lower Middle Peasants," (September 7, 1955), "Debates on Agricultural Cooperative and the Current Class Struggle," (October 11, 1955), and "Introduction to Socialist High Tide in China's Countryside," (September and October 1955) in Selected Works of Mao Tsetung, the 5th volume, Beijing, China, 1977, pp. 168-259.
"The History of Our Contract Labor System" in Labor Contract System Handbook, edited by Liu Chiang-tan, Science Publisher, 1987, pp. 1-18.
See Charles Bettelheim, Cultural Revolution and Industrial Organization in China, Monthly Review Press, 1974.
See Important Documents since the Eleventh Congress, 2nd vol., pp. 747-750.
During most of the 1950's, wage based on piece work was used extensively in the Chinese state-owned industry; its coverage of industrial workers rose from 32 to 42 percent during this period. Payment by piece work increased from one percent of all personnel in 1981 to 11 percent in 1984 and 1986. David Grainck, "Multiple Labor Markets in the Industrial State Enterprise Sector," The China Quarterly, June 1991, p. 283.
People's Daily, May 6, 1988, p. 2.
Selected Works of Mao Tsetung, Peking: Foreign Languages Press, 1977, Vol. V, pp. 268-269.
Mao Tsetung Si Shang Wen Sui (Long Live Mao Tsetung's Thought) published in Japan in 1967, p. 117.
Ibid., p. 198.
Mao Tsetung, A Critique of Soviet Economics, New York: Monthly Review Press, 1977, translated by Moss Roberts, p. 40.
Resolution of the Eight National Congress of the Communist Party of China in 1966.
Po Yi-po, My Memoirs of Many Important Policy Decisions, Vol. I (in Chinese), Chinese Communist Party School Publisher, 1991, pp. 148-151.
See Deng Yuan Hsu and Pao-yu Ching, "Labor Reform -- Mao vs. Liu-Deng," in Mao Zedong Thought Lives, Vol. I, pp. 183-213, Center for Social Studies and New Road Publications, 1995.