The picture of the Chinese economy painted by commentators in the West is often one of strength; an economy dominated by exports, with unstoppable growth and development; in short, a model to emulate. Recent figures released by the International Monetary Fund, however, describe a very different situation; a situation where contradictions are intensifying below the surface; a situation that is pregnant with crisis and revolutionary consequences.

"For a revolution to take place it is not enough for the exploited and oppressed masses to realise the impossibility of living in the old way, and demand changes; for a revolution to take place it is essential that the exploiters should not be able to live and rule in the old way. It is only when the ’lower classes’ do not want to live in the old way and the ’upper classes’ cannot carry on in the old way that the revolution can triumph” (Lenin, ‘Left-Wing’ Communism, an Infantile Disorder).

After overtaking Japan, this year China became the second largest economy in the world. Some experts have even predicted that by the end of this decade China may become the largest economy bypassing the United States. However, that is based on a mechanical, empirical approach that sees China maintaining its present levels of growth uninterruptedly for years to come. In the past Japan was also supposed to keep on growing, but then its apparent meteoric rise was cut across by a long period of stagnation.

The bourgeoisie has never, anywhere, been able to find the key to unlock the mysteries of their own economic system. The only way to understand capitalism is to accept and to explain its contradictory, crisis-ridden nature. It cannot be perfected; its riddle will never be solved from within its confines. Precisely because the apologists of capitalism can never accept this fact, they are forever shifting from one side of the problem to the other.

The crisis that has shaken the world economy since 2008 has pushed bourgeois ideologists to desperately seek a solution. They are looking for alternative ways of running their system, seeking to square the circle and maintain capitalism without its inevitable contradictions. As Asia, and China in particular, is doing so well, there is a burgeoning literature about the Chinese model, just as in the past there was so much made of the “Japanese miracle”. In Part One of this article Luca Lombardi looks at the experience of Taiwan.

On the ninetieth anniversary of the founding of the Chinese Communist Party we published a series of articles that trace the origins and subsequent development of this party, which has played a key role in world history. Dan Morley outlines the conditions in China that led to the foundation of the party as part of the Communist International. The founders of the party looked to the October revolution in Russia as their model, with the working class playing the leading role. 

During the revolutionary events in Egypt, the Chinese authorities displayed extreme nervousness, increasing the police presence on the streets and clamping down on the Internet, where references to the Egyptian Revolution were banned. Why should the rulers of China be so worried about events taking place in distant countries?

China has been making news due to its powerful economic growth. The other side of this story, however, is to be found in the terrible conditions and low pay that many of its workers have to suffer. Here is one example of a milkman.

In this second part of Jeppe Druedahl's contribution to the discussion on China, he explains how initially the Chinese bureaucracy, after the death of Mao, introduced market methods as a means of stimulating production within a planned economy. However, over time the capitalist methods began to dominate and the relation between the plan and the market were overturned. Quantity was transformed into quality, and capitalism has come to dominate. [part one]

Does the development of China on a capitalist basis deny the theory of permanent revolution? Does it mean that capitalism on a world scale has a new lease of life? What was China under Mao? In this first part of a two part article, which we publish as a contribution to the discussion, Jeppe Druedahl looks at these and other questions and draws lessons from the development of the Soviet Union after the revolution and under the Stalinist bureaucracy.

The workers at the Foshan Honda plant in China won a 35% wage increase after taking strike action which started on May 17. The agreement, which was reached on June 4, represents an average monthly pay rise of 500 yuan. A regular front-line worker whose wages were 1544 yuan before, will see his wages increased to 2044 yuan after the pay rise - a raise of 32.4%. The intern employees, who represent a large part of the workforce and have played a key role in the strike but receive much lower wages, will get a raise of 634 yuan from the current rate of 900 - a raise of more than 70%.

On Tuesday and Wednesday, June 1 and 2, most workers returned to work at the Honda plant in Foshan, China, after strike action which had started on May 17. As we reported earlier, the workers were fighting for substantial wage increases.

A high profile two-week long strike by 1900 workers at the Honda Motors transmission plant in China has paralysed production at Honda’s four plants in the country.