The Only Road for the Transformation of Capitalist Industry and Commerce

#PUBLICATION NOTE

This edition of The Only Road for the Transformation of Capitalist Industry and Commerce has been translated, prepared, and revised for digital publication by the Institute of Marxism-Leninism-Maoism under the Central Committee of the Communist Party in Switzerland on the basis of the following editions:

• The Only Road for the Transformation of Capitalist Industry and Commerce, in the Selected Works of Mao Zedong, First English Edition, Vol. 5, Foreign Languages Press, Beijing, 1977.
• The Only Road for the Transformation of Capitalist Industry and Commerce, in the Collected Works of Mao Zedong, First Chinese Edition, Vol. 6, People's Publishing House, Beijing.

#INTRODUCTION NOTE

This is a summary of a speech delivered by Comrade Mao Zedong at the Enlarged 49th Session of the Standing Committee of the National Committee of the Chinese People's Political Consultative Conference in Beijing, China on the 7th of September, 1953. It was first published in the Selected Works of Mao Zedong, Vol. 5, in 1977.

The Enlarged 49th Session of the Standing Committee of the National Committee of the Chinese People's Political Consultative Conference was held in Beijing, China between the 7th and 11th of September, 1953. It was attended by representatives of democratic political parties and industrial and commercial circles.

#Workers and oppressed people of the world, unite!

#THE ONLY ROAD FOR THE TRANSFORMATION OF CAPITALIST INDUSTRY AND COMMERCE

#SUMMARY OF A SPEECH DELIVERED AT THE ENLARGED 49TH SESSION OF THE STANDING COMMITTEE OF THE NATIONAL COMMITTEE OF THE CHINESE PEOPLE'S POLITICAL CONSULTATIVE CONFERENCE

#Mao Zedong

#7th of September, 1953

#★

The transformation of capitalism into socialism is to be accomplished through State capitalism.

#1

In the last three years or so, we have done some work on this, but as we were otherwise occupied, we didn't exert ourselves enough. From now on, we should make a bigger effort.

#2

With more than three years of experience behind us, we can say with certainty that accomplishing the socialist transformation of private industry and commerce by means of State capitalism is a relatively sound policy and method.

#3

The policy laid down in Article 31 of the Common Programme¹ should now be clearly understood and concretely applied step by step. «Clearly understood» means that people in positions of leadership at the central and local levels should first of all have the firm conviction that State capitalism is the only road for the transformation of capitalist industry and commerce and for the gradual completion of the transition to socialism. So far, this has not been the case either with members of the Communist Party or with democratic figures. The present meeting is being held to achieve that end.

#4

Make steady progress and avoid being too hasty. It will take at least three to five years to lead the country's private industry and commerce fundamentally onto the path of State capitalism, so there should be no cause for alarm or uneasiness.

#5

Joint State-private management; orders placed by the State with private enterprises to process materials or manufacture products, with the State providing all the raw materials and taking all the finished products; and similarly placed orders, with the State taking not all, but most of the finished products — these are the three forms of State capitalism to be adopted in the case of private industry.

#6

State capitalism can also be applied in the case of private commerce, which cannot possibly be dismissed by «excluding it». Here, our experience is limited and further study is needed.

#7

With approximately 3'800'000 workers and shop assistants, private industry and commerce are a big asset to the State and play a large part in the nation's economy and the people's livelihood. Not only do they provide the State with products, but they can also accumulate capital and train cadres for the State.

#8

Some capitalists keep themselves at a great distance from the State and have not changed their profits-before-everything mentality. Some workers are advancing too fast and won't allow the capitalists to make any profit at all. We should try to educate these workers and capitalists and help them gradually (but the sooner, the better) adapt themselves to our State policy, namely, to make China's private industry and commerce mainly serve the nation's economy and the people's livelihood and partly earn profits for the capitalists and in this way embark on the path of State capitalism.

The following table shows the distribution of profits in State-capitalist enterprises:

#9

It is necessary to go on educating the capitalists in patriotism, and to this end, we should systematically cultivate a number of them who have a broader vision and are ready to lean towards the Communist Party and the People's Government, so that most of the other capitalists may be convinced through them.

#10

Not only must the implementation of State capitalism be based on what is necessary and feasible (see the Common Programme), but it must also be voluntary on the part of the capitalists, because it is a cooperative undertaking and cooperation admits of no coercion. This is different from the way we dealt with the landlords.

#11

Considerable progress has been made in the last few years by the various nationalities, democratic classes, democratic political parties, and people's organizations, and still greater progress will, in my opinion, be made in the next three to five years. So it is possible fundamentally to accomplish the task of leading private industry and commerce onto the path of State capitalism in three to five years. The preponderance of State enterprises affords the material guarantee for the fulfilment of this task.

#12

There is no such thing as the «Small Five Evils», and nothing should be done «spontaneously». This should be made clear.

#13

As for the completion of the task for the entire transitional period, which consists of the fundamental accomplishment of the country's industrialization and the socialist transformation of agriculture, handicrafts, and capitalist industry and commerce, this cannot be done in three to five years, but will instead take a period of several five-year plans. On this question, it is necessary to oppose both the idea of leaving things to the indefinite future and the idea of rushing things through.

#14

One is the leader while the other is the led; one seeks no private profit while the other still seeks a certain amount of private profit; and so on and so forth — that's where the differences lie. But under our present conditions, private industry and commerce in the main serve the nation's economy and the people's livelihood (which, as far as the distribution of profits is concerned, take roughly 3/4 of the total). Therefore, we can and should persuade the workers in private enterprises to act in the same way as those in State enterprises, namely, to increase production and practise economy, emulate one another in labour, raise labour productivity, reduce costs of production, and raise both quantity and quality, thus serving the interest of both the State sector and the private sector and that of labour and capital.

#15

The shortcomings of most of the current joint State-private enterprises (mainly the lack of labour rights and the lack of dividends for the private owners) must be corrected, otherwise the road to State capitalism will be blocked. We should follow the example of the Minsheng Industrial Company.²