Jiang Yihua: The United Front in the New Era: What is the Basic Economic System of Socialism?

Summary:

For all kinds of non-public economic people and new social strata, solving the problem of people’s hearts and strength requires a correct understanding of what socialism is and what the basic economic system of socialism is.

This is the key to whether the united front can be firmly established and healthily developed in the new era. After the outbreak of the October Revolution in Russia, Lenin’s New Economic Policy was a brand-new interpretation of what socialism is. Shortly after Lenin’s death, public ownership, planned economy, and distribution according to work were determined as the three major criteria for judging whether it is socialism, forming the Stalin model of socialism. The Chinese Communists, represented by Mao Zedong, founded the theory of the new democratic revolution based on China’s reality. Subsequently, influenced by the international communist movement, the rationality and authority of socialism during the Russian war communism period were quickly confirmed.

Based on the profound historical summary of the Soviet socialist model and the successful experience and setbacks of Chinese socialism, the Communist Party of China and the Chinese people embarked on the road of reform and opening up.

 From the theory of the primary stage of socialism, the theory of socialism with Chinese characteristics, to the theory of the basic economic system of socialism, from “a basic economic system in the primary stage of socialism” to “socialist system with Chinese characteristics”, and then to “socialist basic economic system”, this process of theoretical& pratical innovation reflects that our understanding of the essential characteristics of socialism is deepening step by step, and our confidence is also increasing step by step. The rock-solid foundation of the united front in the new era lies in socialism, a socio-economic form and social form. In this article we will also give historical information on how top CPC leaders such as Mao, Liu Shao Shi, Zhou Enlai discussed the basic economic system of socialism..

Keywords: socialism; economic form; united front

1. How Should We Put the Problem

Xi Jinping pointed out: “China   social structure has undergone profound changes, and the role of the united front in strengthening the party’s class foundation and expanding the party’s mass base has become even more important.” [1]

To do a good job in the united front work, whether it is party relations, ethnic relations, religious relations, class relations, or relations between compatriots at home and abroad, we must solve the problem of people’s hearts and strength. People’s hearts and strength are actually what Xi Jinping emphasized at the Central Nationalities Work Conference to build a common spiritual home for the Chinese nation, “to bring the hearts of all ethnic groups together and rely on each other in spirit, and form a strong spiritual bond that unites the people and strives forward.” [2]

 It means that people “unite in ideals, beliefs, emotions, and culture, and help each other and have a deep brotherhood.” For various non-public economic people and various new social classes, how to solve the problem of people’s hearts and strength and form a spiritual bond that unites the people and strives forward is very necessary to correctly understand what socialism is and what the socialist basic economic system is.

The 15th CPC National Congress in 1997 proposed that the basic economic system of the primary stage of socialism should be one in which the public sector is the mainstay and multiple forms of ownership develop together. The 16th CPC National Congress in 2002 proposed “two unshakable” principles: first, the public sector must be consolidated and developed unshakably. Second, the development of the non-public sector must be encouraged, supported and guided unshakably. The “Decision of the CPC Central Committee on Several Major Issues Concerning Comprehensively Deepening Reform” adopted at the Third Plenary Session of the 18th CPC Central Committee in 2013 called the basic economic system of the public sector being the mainstay and multiple forms of ownership developing together “an important pillar of the socialist system with Chinese characteristics and the foundation of the socialist market economic system” and reiterated: “We must unshakably consolidate and develop the public sector, uphold the dominant position of the public sector, give full play to the leading role of the state-owned economy, and continuously enhance the vitality, control and influence of the state-owned economy. We must unshakably encourage, support and guide the development of the non-public sector and stimulate its vitality and creativity.” 202 In October 2023, the 20th CPC National Congress put forward a more explicit statement: “Build a high-level socialist market economic system. Adhere to and improve the basic socialist economic system, unswervingly consolidate and develop the public economy, unswervingly encourage, support and guide the development of the non-public economy, give full play to the decisive role of the market in resource allocation, and better play the role of the government.” At a symposium in Shanghai on November 30, 2023, Xi Jinping particularly emphasized that the Yangtze River Delta “should take the lead in implementing policies and measures to encourage, support and guide the healthy development of the private economy, further optimize the development environment for private enterprises, and promote the healthy and high-quality development of the private economy.” [3]

China’s practice has proven that the public and non-public sectors of the economy are not mutually exclusive. As General Secretary Xi Jinping pointed out, “Our country is so large and has such a large population. To promote economic and social development, we need concerted efforts from all sides. The public and non-public sectors of the economy should complement and bring out the best in each other, rather than exclude or offset each other.”[4] Therefore, in socialist construction, they are an indispensable and important part of the united front led by the Communist Party of China, just as they were during the New Democratic Revolution.

How to correctly understand what socialism is and what the socialist economic form is is the key to whether we can consolidate and healthily develop the united front in the new era and establish the united front on a rock-solid foundation.

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