This article, written in May 1965 by Ted Grant, shows how genuine Marxism was able to see the real processes going on in China and not be fooled by the words of the Chinese leaders. Then as now Marxism was a tool that allowed one to see through the fog of seemingly contradictory and incomprehensible events.

The march towards capitalism is not a simple straightforward process. There are opposition voices within the bureaucracy, but more importantly capitalist development has created a massive working class and this is now being expressed in the growing level of strikes.

State planning has broken down in China, but the state still plays a key role in providing capital investment and in nurturing major Chinese corporations whose role is to compete with the foreign multinationals and guarantee that important economic interests remain in Chinese hands.

Nearly thirty years have passed since Deng first introduced his “market reforms”. What started as an attempt to stimulate growth within a planned economy has ended up by establishing capitalist relations in the Chinese economy. How did all this happen and where is China going today?

The dominant wing of the Chinese Communist Party has pushed through capitalist counter-reforms in the Chinese economy over the past couple of decades, achieving immense economic growth but also devastating effects on the conditions of the workers. Here we publish an interesting letter by an anonymous group of “veteran CCP members, veteran cadres, veteran military personnel and intellectuals” who are opposed to this course.

China’s headlong drive towards capitalism is beginning to meet resistance. Workers’ protests are growing. Opposition is even being voiced within the ranks of the Chinese Communist Party itself. It is merely a matter of time before the class struggle erupts on a grand scale.

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