A Study Of The Party's Policies Towards Private Capitalism From 1949 To 1956

How to understand and treat the capitalist element in social economy remains a theoretical and practical issue of significance to Chinese communists up to now. Research of this program can be referred to for upcoming enactment and implementation of policies towards private capitalism by the Party and is of importance to further deepening the study and implementation of the important thought of "Three Represents". This article makes a review of the Party's policies towards private capitalism from 1949 to 1956.I. Basis of the Communist Policy towards Private Capitalism from 1949 to 19561. Historical Basis: The historical basis of the communist policy towards private capitalism is an acceptance and development of the communist policy towards private capitalism pursued in the New Democratic Revolution, which is the origin and departure of the policy adopted by the Party from 1949 to 1956. It is a basic policy to protect national industry and commerce put forward in the late period of the Agrarian Revolution War, roughly after the Zhunyi Conference, which was declared by the Party once the China's War of Liberation started. In October, 1947, the policy of "developing national industry and commerce" was proposed in the Declaration by the Chinese People's Liberation Army. After the "September Conference" held in 1948, the Central Party Committee received the Outline Concerning the Economic Structure and Basic Program for Economic Construction in Northeastern China from the Northeastern Bureau drafted by Zhang Wentian, which was the first to present the idea of "utilizing and limiting" private capitalism, and which was upheld by the Second Session of the Seventh Conference of the CPC to be a policy adopted by the party.2. Theoretical Basis: The theoretical basis lies in the theories of Marx, Engels, Lenin and Mao Zedong concerning capitalism. The so-called "new capitalism" theory, which is the acceptance and development of Marxism and Leninism of employing capitalism and "peaceful purchase" by Mao Zedong, contains four parts: first, develop vigorously the private capitalism, which is conducive to enhancing social productivity and to the transition to socialism. Second, necessary limits must be imposed on private capitalism in case that private capitalism hold control of state and individual economic welfare. Third, treat appropriately the contradiction between the socialist element andprivate capitalist element in the national economy. Fourth, in the transition period, state capitalism should be adopted to transform capitalist industry and commerce. Admittedly, the "new capitalism" thought of Mao Zedong and others conformed to the reality of contemporary China and thus was scientific and generally was a guideline for the policy adopted by the party towards the private capitalism in the transition period. This thought, however, underwent a dramatic change after the Party's general line for the transitional period was adopted in 1953. In October, 1955, Mao Zedong presented the idea of "eliminating capitalism"3. Practical Basis: The practical basis is the fact that capitalism represented the advanced productive capacity of contemporary China, which means: (1) Private capitalism is the incumbent social productivity that could be inherited and utilized by the CPC at that time; (2) Private capitalism, which represented the advanced productivity, failed to develop sufficiently in the semi-colonial and semi-feudal society; (3) Private capitalism is an important part of the new democratic economy; (4) Developing private capitalism is conducive to the consolidation of people's democratic dictatorship.II. Changes in Policies towards Private Capitalism by the CPC in 1949 to 1956 Policies towards private capitalism underwent three phases: 1. In the phases pursuing the policy of "being concerned for both the public and private, benefiting both the work force and capitalists, and emphasizing the utilizing side", (from May, 1949, to December, 1952) the policy of "being concerned for both the public and private, benefiting b...