Issues in the Development of China's Communist Struggle in the 21st Century – English

Introducing a competition mechanism into the public sector economy is precisely using market means to achieve socialist goals:

Stimulate vitality: Through competition, break the monopoly of state-owned enterprises and internal bureaucracy, forcing SOEs to improve efficiency and management, thereby mobilizing the enthusiasm of production units and individual producers.

Survival of the fittest: Allow state-owned and private enterprises to engage in long-term, fair competition, optimizing resource allocation through natural selection. Only through market testing can the true superiority of the public sector economy be demonstrated.

2. Strategic Competition: Promoting Dynamic Balance Between Multiple Private Enterprises and a Single State-Owned Enterprise

To ensure that competition ultimately benefits the long-term development of the public sector economy, we must adopt a strategic competition model. We must promote competition between multiple private enterprises and a single state-owned enterprise.

The advantages of this model are:

1.  Risk Diversification: The decentralized and diversified nature of the private sector prevents it from forming a single monopolistic force capable of challenging national macroeconomic regulation.

2.  Efficiency Learning: When a single state-owned enterprise competes with multiple efficient private enterprises, it can maximize learning and drawing on the advantages of private enterprises in technology, management, and business models, thereby achieving self-transformation. This aligns precisely with the requirement in our opening-up policy to "learn from the advanced science and technology of capitalist countries and the scientific aspects of enterprise management methods.

3.  Consolidating the Dominant Position: Only a public sector economy that survives and thrives in such dynamic competition can genuinely demonstrate its superiority as the mainstay of the socialist economy.

Under this competitive mechanism, further development of the public sector economy becomes possible. If the public sector economy can achieve faster accumulation through such competition, it will be better equipped to develop more extensively and effectively, thereby better meeting the needs of the people's livelihoods. This virtuous cycle will ultimately enable us to establish, through reform, a "socialist economic system full of vitality and dynamism.

3.  Adhering to the Correct Direction: Opposing "Leftist" Dogmatism and "Rightist" Liberalization

We must remain vigilant against interference from both "Left" and "Right" during the reform process.

Currently, on one hand, we oppose the dogma and conservatism that equate reform and opening-up with the introduction and development of capitalism, claiming that the primary danger of peaceful evolution originates from the economic sphere.，The "Leftist" viewpoint. It is precisely this kind of "leftist" dogmatic thinking that hinders us from boldly emancipating our minds and accelerating the pace of reform and opening up.

On the other hand, we must resolutely oppose the rightist tendency that views the excessive expansion of private enterprises as "natural development," and we must oppose bourgeois liberalization, as this ideological trend attempts to negate the socialist system and advocates following the Western capitalist path. If this tendency is allowed to develop unchecked, it will lead more people astray, with very serious consequences.

Therefore, our path is clear: adhere to market-oriented reforms under socialist principles, that is, within the framework of the two fundamental principles of public ownership as the mainstay and common prosperity, focus on developing productive forces, and let the "invisible hand" of the market become a powerful tool for liberating productive forces and invigorating the public sector of the economy.

In summary, the challenges we face require us to possess both the strategic determination of statesmen to safeguard the fundamental status of public ownership and avoid repeating the mistakes of the Soviet bureaucratic empire and North Korea's closed model, as well as the courage and innovation of economists to boldly introduce competition and survival-of-the-fittest mechanisms between public and private ownership. Only in this way can the superiority of the socialist system be truly reflected in economic efficiency and the common prosperity of the people. Only then can China continue to advance unwaveringly along the correct path.

Following the global upheavals of the late 20th century, we have developed a profound historical understanding of the threats posed by "color revolutions" and "peaceful evolution." The drastic changes in Eastern Europe during the 1990s, particularly the collapse of the Soviet Union, serve as a stark cautionary tale. China avoided repeating this tragedy partly due to our heightened vigilance against ideological infiltration and our implementation of effective defensive strategies, including "opposing bourgeois liberalization," in response to the wave of cultural liberalization. However, I must unequivocally state that the challenges we now face have fundamentally shifted: the risk of China falling victim to a color revolution is far greater in the economic sphere than in the cultural realm.

1. The Economic Foundation of Ruling Legitimacy and the Severe Challenge of Slowing Growth

For a long time, the Communist Party of China has led the people in realizing the great rejuvenation of the Chinese nation, with the foundation of this rejuvenation being "making the Chinese people prosperous and the nation strong." The people's aspiration for a better life is the goal of our Party. Over the past decades, the superiority of the socialist system with Chinese characteristics has been most tangibly reflected in unprecedented economic vitality and a significant improvement in people's living standards. This sustained, high-speed economic growth has constituted one of the most solid material foundations for the current ruling legitimacy of the Communist Party of China.

However, current economic development has noticeably slowed, and new challenges have emerged. According tothe current economic situation,，we have reason to believe thatChina's economy is facing severe challenges in multiple aspects:

Structural Downturn and Growth Slowdown: Partly due to accelerated population aging, declining capital returns, and geopolitical risks.

Deep-Seated Structural Issues: Slowing population growth and aging lead to shrinking domestic aggregate demand, putting pressure on the social security system.

Financial and Debt Risks: Crises in the real estate sector,，such as the recentEvergrande debt crisis,，and risks from local government debt have adversely affected economic stability.

Institutional Constraints and Policy Impacts: High tax burdens may squeeze the vitality of the real economy, while strengthened regulatory controls over private enterprises，have alsoledtoeconomic growth slowing or negatively impacting business dynamism.

The compounding of these issues has significantly increased social conflicts, particularly as the income distribution gap among residents remains wide. When economic gains fail to "benefit all people more and more fairly," the public's awareness of fairness and rights continues to grow, leading to strong dissatisfaction with social inequities.

Once the economy remains persistently sluggish, people's "aspiration" for a better life may transform into disappointment and questioning of the current system. Historically, the failure of the Communist Party of the Soviet Union did not occur during its economic peak, but when its leadership implemented erroneous policies, leading toeconomicgrowth slowdown,stagnation in social development. Such changes in data and daily lifewere sufficient to triggerdissatisfaction among some of the masses,ultimatelyunder the liberal reforms promoted by the reformists in power, the Soviet Unionlost all legitimacy and moral foundation for its existence. This is the logical chain of economic issues transforming into political crises.

2. "Mismatched" coping strategies and the deviation from seeking truth from facts

Against this backdrop, we must examine the current coping strategies. I have observed that certain decisions by the Central Politburo have consistently called for "singing the strongest voice of China's economy." This attitude, in my view,China's Central Politburois using methods to counter cultural color revolutions to address economic color revolutions—a case of mismatched approaches.

Color revolutions" in the cultural sphere primarily target ideology, historical perspectives, values, and political systems. In such struggles, through positive propaganda，promoting the main theme, spreading positive energy, ideological transformation，cultivating and practicing core socialist values，and strengthening cultural censorship, it is indeed effective in consolidating the "common ideological foundation.

However, an economic crisis is a matter of material foundations, not merely a problem of spiritual beliefs. We cannot expect to resolve practical challenges such as real estate debt, local fiscal difficulties, and structural unemployment simply by promoting messages like "the situation is excellent." This attitude of "reporting only the good news while concealing the bad" brings about dual harm:

First, it contradicts Chairman Mao's ideological principle of "seeking truth from facts." Upholding this principle means "proceeding from the laws governing the existence and development of objective realities and acting in accordance with these laws in practice." Our thoughts and actions must align with objective laws, meet the demands of the times, and serve the interests of the people. If we deviate from reality, ignore profoundly changing objective facts, cling to outdated ways, and become complacent, we must resolutely correct these tendencies. The slowdown in economic growth and the increase in contradictions are objective realities. If we evade problems for the sake of so-called "stability," not only will we fail to resolve conflicts, but we will also allow issues to accumulate covertly—much like how the Soviet leadership under Brezhnev concealed severe underlying or apparent problems in the economy, politics, and ethnic policies, ultimately sowing the seeds for extremely grave consequences.

Second, this "blocking" approach is precisely the opposite of the old Chinese saying "dredging is better than blocking." When we attempt to use propaganda machinery to cover up economic contradictions, we risk damaging the Party's flesh-and-blood ties with the masses. Once the masses perceive that our Party has become detached from them and lost their support, it will ultimately lead to failure. Only by guiding the masses and acknowledging economic development issues can we channel their concerns and dissatisfaction into positive and constructive directions.

Therefore, the correct way to address economic color revolutions is not to whitewash reality through public opinion, but to confront problems head-on and propose socialist solutions that fundamentally resolve the drawbacks of capitalism.

We must use Marxist scientific theory and the essence of Mao Zedong Thought—seeking truth from facts—as our critique and guide. Comrade Mao Zedong once said: "Whether a political line is correct or not is not a theoretical question, but a practical one." The current economic challenges we face are precisely the practical test of whether our political line is correct.

1. Acknowledging Problems: The Political Courage to Seek Truth from Facts

Upholding the principle of seeking truth from facts requires the courage to "uphold truth and correct errors for the people's interests." The great practice of China's reform and opening-up was built upon a profound reflection on the painful lessons of the decade-long turmoil of the Cultural Revolution, moving away fromDogmatismbreaking free from the errors of dogmatism. In terms of emancipating our minds, we cannot remain stagnant, nor can we dare to do nothing and attempt nothing.

The prominent issues currently existing in the economy, including imbalances, lack of coordination, and unsustainability in development, the persistent disparities between urban and rural areas as well as in income distribution among residents, and the increasing social contradictions, are all evident. The central authorities have clearly recognized that the key to resolving these issues lies in deepening reforms.

However, such reforms must take promoting social fairness and justice, as well as enhancing the well-being of the people, as their starting point and ultimate goal. We must soberly recognize that if reforms fail to bring tangible benefits to the people, if they do not create a fairer social environment, or even lead to more inequities, then the reforms lose their meaning and cannot be sustained.

This tendency to "sing the loudest praises" stems from the fear that acknowledging problems will undermine confidence, which is a manifestation of a lack of "confidence in the system." We must understand that the robustness of the socialist system with Chinese characteristics does not lie in concealing contradictions, but in the systemic advantage of our "ability to resolve" them. As Comrade Deng Xiaoping stated, our social harmony and stability are meant to "better ensure the people's position as masters of the country" and "enable the fruits of development to benefit all people more extensively and fairly.

2. Guiding the Masses: From Political Struggle to Economic Consciousness

Throughout history, our Party has always relied on the strength of the masses. Whether in revolution, construction, or reform, the emergence and development of all new things have stemmed from the practice and wisdom of hundreds of millions of people.

When facing the political risks that economic crises may bring, we should not regard the masses as objects requiring "stability maintenance," but rather as the "main force" in solving problems. Comrade Mao Zedong once pointed out that we must believe the majority of the masses support socialism. Even among those who do not support or oppose socialism, the most stubborn elements constitute only a tiny minority. Therefore, we must openly share the economic situation with the masses, acknowledge the challenges, and then gradually steer the direction of solving economic development issues toward the advancement of the state-owned public sector of the economy.

This requires us to conduct profound ideological education and political guidance among the masses in the economic sphere. We must help the masses recognize that:

The current unfair phenomena in the economy,，such as widening distribution gaps and private enterprises contributing to unemployment rates, are manifestations of capitalist drawbacks that we have yet to fully overcome while adhering to the socialist market economy.

Only by maintaining the dominant position of the public sector of the economy can we ensure that the fruits of development ultimately serve the common prosperity of all people.

The fundamental solution to the problem lies not in embracing the Western so-called "multi-party system" or "separation of powers," but in deepening the reform of public ownership, liberating and developing productive forces through the reform and development of socialism itself under the strong leadership of the Party.

This guidance, in essence, is a new form of mass line education and practice, enabling the masses to reaffirm their belief in the socialist system through concrete practices in economic life.

I firmly believe that the best way to counter economic "color revolutions" is for the masses to experience an "economic development revolution" after the military revolution of the Liberation War and the ideological revolution of the Cultural Revolution, allowing socialism and the public ownership economy to solve the many economic problems faced by modern China's capitalization.