Although the dismantling of the old state owned planned economy was an enormous reactionary step backwards and Marxists are utterly opposed to it, there is one positive element in the process: the creation of the largest proletariat in the world. The development of capitalism in China brings with it class contradictions that are preparing a new revolutionary upheaval in Chinese society. Once this massive Chinese proletariat moves decisively it will shake the whole world.
Deng’s early “reforms” initiated in the late 1970s were aimed at improving efficiency in the economy. But once the Chinese bureaucracy had embarked down the road of capitalist incentives the whole process had a logic of its own, sucking China more and more down the road of capitalist restoration. This did not happen all in one go. There were several key turning points which are analysed here.