Mao Tse-tung


From the
Selected Works of Mao Tse-tung,
Foreign Languages Press
Peking 1977

First Edition 1977

Vol. V, p. 101.

Prepared © for the Internet by David J. Romagnolo, (November 1999)

    page 101


    July 9, 1953

        The present-day capitalist economy in China is a capitalist economy which for the most part is under the control of the People's Government and which is linked with the state-owned socialist economy in various forms and supervised by the workers. It is not an ordinary but a particular kind of capitalist economy, namely, a state-capitalist economy of a new type. It exists not chiefly to make profits for the capitalists but to meet the needs of the people and the state. True, a share of the profits produced by the workers goes to the capitalists, but that is only a small part, about one quarter, of the total. The remaining three quarters are produced for the workers (in the form of the welfare fund), for the state (in the form of income tax) and for expanding productive capacity (a small part of which produces profits for the capitalists). Therefore, this state-capitalist economy of a new type takes on a socialist character to a very great extent and benefits the workers and the state.

        * Written comment on a document of the National Conference on Financial and Economic Work held in the summer of 1953.