- Created: Thursday, 07 May 2009 13:51
- Written by Trevor Rayne
‘Let China sleep, for when she wakes, she will shake the world.’ Napoleon
On 1 October 1949 Mao Zedong announced ‘China has stood up.’ A quarter of humanity, led by the Chinese Communist Party, had thrown off imperialism and its comprador bourgeoisie and begun dismantling semi-feudal land-ownership. They began constructing socialism: banks and industries were nationalised and land redistributed to the peasantry.
Fifty-five years later the Hong Kong based brokerage firm CLSA says that the private sector is now responsible for three-quarters of China’s output and employment, making the Communist Party government more dependent than ever on entrepreneurs to sustain high-speed economic growth. The Organisation for Economic Co-operation and Development (OECD) reports that private business generates nearly two-thirds of non-farm output. It says that the number of state controlled enterprises has halved to 150,000 since 1995. Private companies increased output by 400% and foreign companies 200% between 1998 and 2003 compared with the state sector increase of 70%. TREVOR RAYNE examines the routes China has taken since 1949.
A new police force is being established in Chinese cities, equipped with helicopters and armoured vehicles to combat ‘the threat of terrorism and the rising incidence of rioting and social unrest across the country’. The Public Security minister, Zhou Yongkang, said the authorities dealt with 74,000 protests and riots last year, involving 3.7 million people, compared with 10,000 incidents in 1994. Professor Xiaozheng of Renmin University doubted that the new force would have any impact on the causes of unrest: ‘The crux of the problem lies in an unbalanced society which lacks justice and equality. As the income gap widens, and officials become more and more corrupt, better equipped police will only be used to protect the rich people and residents of big cities.’ (Financial Times, 19 August 2005)