On State Capitalism

#PUBLICATION NOTE

This edition of On State Capitalism has been translated, prepared, and revised for digital publication by the Institute of Marxism-Leninism-Maoism under the Central Committee of the Communist Party in Switzerland on the basis of the following edition: On State Capitalism, in the Selected Works of Mao Zedong, First English Edition, Vol. 5, Foreign Languages Press, Beijing, 1977.

#INTRODUCTION NOTE

This is a comment written by Mao Zedong on the Minutes of the Seventh Session of the National Conference on Financial and Economic Work on the 9th of July, 1953. It was first published in the Selected Works of Mao Zedong, Vol. 5, in 1977.

The National Conference on Economic and Financial Work was convened by the Central Committee of the Communist Party of China in Beijing, China between the 14th of June and 12th of August, 1953.

#Workers and oppressed people of the world, unite!

#ON STATE CAPITALISM

#COMMENT ON THE MINUTES OF THE SEVENTH SESSION OF THE NATIONAL CONFERENCE ON FINANCIAL AND ECONOMIC WORK

#Mao Zedong

#9th of July, 1953

#★

The present-day capitalist economy in China is a capitalist economy which for the most part is under the control of the People's Government and which is linked with the State-owned socialist economy in various forms and supervised by the workers. It is not an ordinary, but a particular kind of capitalist economy, namely, a State-capitalist economy of a new type. It exists not chiefly to make profits for the capitalists, but to meet the needs of the people and the State. True, a share of the profits produced by the workers goes to the capitalists, but that is only a small part, about 1/4 of the total. The remaining 3/4 are produced for the workers (in the form of the welfare fund), for the State (in the form of income tax), and for expanding productive capacity (a small part of which produces profits for the capitalists). Therefore, this State-capitalist economy of a new type takes on a socialist character to a very great extent and benefits the workers and the State.