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%.

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