China begins the “transformation of capitalism”

Is a new “cultural revolution” starting in China? For many days in the Celestial Empire, they have been discussing the article “Everyone can feel that a deep transformation is taking place” – about the new course of Xi Jinping .Here is the most striking quote from it:

“If we continue to have to rely on big capitalists as the main force in the fight against imperialism and hegemonism, or we continue to cooperate with the American industry of ‘mass entertainment’, our youth will lose their strong and courageous energy, and we will suffer the same collapse. like the Soviet Union, even before we get a real attack. “

The publication appeared on WeChat on August 28 on the personal blog of Li Guangman. He is a little-known journalist and former editor-in-chief of a small newspaper. But in the following days, the text was reprinted by various state media, including the People’s Daily and the Xinhua News Agency. That is, the theses of Guanman’s article received the highest support – and everyone began to perceive them as a signal of the upcoming radical transformations. Moreover, the article appeared 55 years after the beginning of the “great proletarian cultural revolution” – a turmoil that lasted for several years, during which Mao, relying on the extreme left, dealt a terrible blow not only to the Chinese nomenclature, but also to the entire way of life of educated Chinese.

And is there another storm of communist heights ahead?

Of course not. No matter how frightened the Chinese liberal Westernizers may be. No matter what they think up in the West. There can be no return to the practice of the “cultural revolution”. Nobody is going to curtail the reforms initiated by Deng Xiaoping in 1978, and the market economy is not going to be canceled. China’s goal remains to build a “society of common prosperity” by 2049, that is, by the centenary of the founding of the PRC.

But China is not going to give up the leading role of the Communist Party either – as well as the assertions that it is socialism with Chinese characteristics that is being built. The same Xi Jinping said at the celebration of the centenary of the CCP in July that “we must continue to promote the Sinification of Marxism, persistently combine the basic principles of Marxism with the concrete reality of China and with the excellent traditional culture of China.” 

But if socialism is Chinese, then the market economy, that is, capitalist, must also be Chinese. That is, a kind, national and consistent with Chinese values. It is precisely its change that Xi Jinping is engaged in. That is why the article of the blogger Guanman received such a resonance. What does Guanman write about? The fact that everything that has been happening in China in recent months is not separate events. It is part of a larger plan, which he calls “the deepest transformation” carried out by Xi Jinping.

Regulation of a very large IT businesses

First, Beijing tightened regulation of a very large IT business. Then restrictions were introduced on the activities of tutors (a huge market in China). And also access of schoolchildren to video games (no more than three hours a week). Now hands have reached show business – fines and bans on performances have been introduced for some stars. 

Moreover, at first there were warnings, and the main measures against the “cultural figures” were taken just after the publication of Li Guangman’s article – which, of course, added to the conspiracy theorists the confidence that the text about deep transformation appeared for a reason. Already on September 2, the management of the television and radio broadcasting announced a new strategy – limiting television programs and reality shows that cultivate youth idols. It is clear which ones, because at the same time we are talking about the need to establish the correct standards of beauty and expel “effeminate men.” 

Show business was offered to “deliberately abandon vulgarity, bad taste. And also to deliberately rebuff the decadent ideas of worshiping money, hedonism and extreme individualism. “Moreover, all the measures of the Chinese authorities have not only a market, but also a completely understandable moral dimension. Moreover, they are caused precisely by concern for the moral and ethical health of the nation. The financial costs are deeply secondary here. Because health, especially moral, cannot be bought. And then you cannot re-educate young people brought up on someone else’s matrix. And Xi Jinping is deliberately taking tough measures.

Li Guangman explains it as follows:

“This is a return from a group of capital to the masses of people and the transformation of a capital-oriented model into a model oriented towards the people. Thus, this is a political change, and the people again become the main organ of this change. Those who will prevent this change from being implemented in the direction of the people will be discarded.

This is also a return to the original intentions of the CCP. A return to the essence of socialism. “Moreover, Guanman promises that soon new rules of the game will come to the real estate and medical services sector. There the authorities intend to fight unnecessarily high prices. As a result, people will benefit from the reform of the education, medical and property sectors. It will lead to “shared prosperity.” The path to it lies through the reduction of social inequality. And it has become enormous in China.

“The capital market will no longer be a haven for capitalists who can get rich overnight. The cultural market will no longer be a paradise for sissy stars. News and public opinion will no longer worship Western culture. Therefore, we need control all cultural chaos and build a vibrant, healthy, courageous, strong and people-centered culture. “

Yes, this is the goal that Xi Jinping sets for himself. Chinese society over the past decades has gone through serious Westernization, the cult of consumerism and pleasure. The new CCP policy will not suffer defeat. Because with all the profound changes, with all the contradictions and problems, the majority of the Chinese still retained a sense of national unity and solidarity. And an understanding of justice.

Correction will be difficult and painful

The correction will be very difficult and painful. However, the CCP has another ally in this struggle. This is Chinese patriotism, and it is really massive. It is no coincidence that Guangman explaining the necessity and inevitability of a “deep transformation”. At present, China is facing an increasingly harsh and complex international situation. The United States is carrying out military threats against the country. It is conducting an economic and technological blockade, inflicting financial blows and conducting a political and diplomatic siege of China.

In addition, the United States. launched a biological and cyber war against us, attacks on public opinion in China. “That is, the “profound transformations” taking place in China in themselves are needed in order to “respond to the brutal and ferocious attacks of the United States. As well as to the current difficult international situation,” explains Guangman. 

The Chinese understand this very well – a weak and weak-willed China will become a victim of external expansion. As it was already in the 19th century. Hence the most important warning of Guangman: If China, in its confrontation with the West, relies on its capitalists and educates young people on global mass culture, then the fate of the USSR awaits it.

Resisting external challenges

It will collapse even before it is attacked. Indeed, such civilizing powers as China and Russia cannot be defeated from the outside. They can only be undermined from within. Split, take advantage of their internal mistakes, internal weakness, make them manageable. Take the future away from them, bring up new generations to be weak and devoid of national character, add opium, real or ideological. China understands this very well – including from the experience of Russia, which has already paid a terrible price for the collapse of the country. And both powers will do everything to ensure that their internal order meets the interests of the peoples and their civilizational code. That is, it is resistant to any external challenges.

How China won its war on poverty?

Documentary with Lawrence Robert Kuhn

When the history of the 21st century is to be written, there is no doubt that the story of China’s eradication of poverty – i.e. lifting about 700 million people out of it – will be seen as a milestone, a turning point for humanity.

China’s poverty rate fell from 88 per cent in 1981 to 0.7 per cent in 2015, as measured by the percentage of people living on the equivalent of US$1.90 or less per day in 2011 purchasing price parity terms.

On November 23rd 2020, China announced that it had eliminated absolute poverty nationwide by uplifting all of its citizens beyond its set ¥2,300 (CNY) per year, or less than a dollar per day poverty line.

This result has been achieved within just four decades, after Chinese leader Deng Xiaoping declared the Open Door Policy in December 1978.

Very few Western mainstream media have seen it fit to report this. We should wonder why.

US President Lyndon B. Johnson declared his war on poverty in 1964. At that time, the official poverty rate was about 15 per cent. 60 years later, it’s 12.3% – according to the US Census Bureau. These are national averages; poverty hits various social groups very differently. An interesting source here: “Approximately 16.4 million American children – 22 per cent of the population younger than 18 – live in poverty. The rate for people 65 and older is 8.7 per cent…”

At TFF we believe that China’s development – for good and for bad – is important for us all, for the world’s future and for a fair, broad-minded understanding of contemporary China. And that this speaks volumes about respect for human rights.

That’s why we give our visitors here a series of links (under the documentary) to more information. In this documentary, one of the most impressive Western connoisseurs of China, Lawrence Robert Kuhn, guides you to a broader understanding of the question that first comes to mind: How did the Chinese government and people go about achieving this amazing result?

 Jan Oberg, editor

This article was originally published by TRANSNATIONAL


On the other side we have “world’s only super-power” that has lost its own war on poverty (just as many other wars). United States declared unprovoked trade war (and even more fierce propaganda war) against China. It was all wrapped as something that “unpredictable” Donald Trump has done himself. As usual, that is not true. Here we have new president of US who is continuing exactly the same way.

According to US officials and numerous Think Tank organisations closely connected to American government and even their “deep state” – Chinese advance in technology or anything else is – challenge to America. They even claim it is targeting their “way of life” that they are forcing upon the rest of the world through their dominance in media, social media and Internet as a network itself.

Eurasia News Online


Biden sends warning to China on chips and rare earths

US President signs executive order for a review of supply chains for semiconductor chips, rare earth elements, pharmaceuticals and large batteries; said he would seek $37 billion to supercharge chip manufacturing in the US; gets bipartisan support for these efforts

(ATF) President Biden sent an effective warning to China on Wednesday February 24 as he signed an executive order for a review of supply chains that will cover semiconductor chips and rare earths.

Biden signed the executive order after a meeting with both Democratic and Republican politicians that he hailed as “like the old days” of agreeing on shared goals.

He did not mention China by name at the signing, but said: “We should not rely on a foreign country, especially one that does not share our interests or our values.”

Biden announced a 100-day review that will cover chips, rare earths, pharmaceuticals and the large capacity batteries that are key for electric vehicles. A broader one-year review will cover multiple other sectors including food production and technology.

The US President said he would seek $37 billion in funding for legislation to supercharge chip manufacturing in the United States as a shortfall of semiconductors has forced US automakers and other manufacturers to cut production.

“I’m directing senior officials in my administration to work with industrial leaders to identify solutions to the semiconductor shortfall,” Biden said on Wednesday. “Congress has authorised a bill but they need … $37 billion to make sure that we have this capacity. I’ll push for that as well.”

The executive order directs six sector reviews, modelled on the process used by the Defence Department to strengthen the defence industrial base. It will focus on defence, public health, communications technology, transportation, energy and food production. 

The United States has been besieged by supply shortages since the onset of the pandemic, which squeezed the availability of masks, gloves and other personal protective equipment, hurting frontline workers.

Most pressing issues

A global chip shortage is the most pressing issue for US firms, with some automakers forced to temporarily suspend work and industry trade groups relentlessly urging action from the government. China is also scrambling to source more chips for its own industrial needs.

Biden’s new national economic council director Brian Deese moved last week to secure a greater share of chip supply from Taiwan for the US, while Japan and European countries are also trying to increase their supplies. Any moves by foreign governments to forge closer ties with Taiwan will almost inevitably raise tensions with China.

Rare earths could emerge as the next most important point of stress between the US and China, however. An internal debate appears to be taking place within China over whether or not to try to use an ability to control the price of many rare earths to demonstrate goodwill towards the new Biden administration, or as a weapon in an ongoing conflict with the US.

Reports said Chinese government officials recently asked industry officials how badly companies in the US and Europe, including defence contractors, would be affected if China restricted rare earth exports during a bilateral dispute.

China has in the past had mixed success in trying to use its dominance of rare earth production as a geopolitical tool, as previous price rises encouraged creativity in rare earth mining in other countries and ended up reducing the overall global Chinese share in some metals.

“Critical minerals are an essential part of defence, high-tech, and other products. From rare earths in our electric motors and generators to the carbon fibre used for airplanes — the United States needs to ensure we are not dependent upon foreign sources or single points of failure in times of national emergency,” a White House statement said on Wednesday before Biden signed the new executive order.

China has increased production quotas for the start of this year, but rare earth prices renewed their upward drive after the end of the recent Lunar New Year holiday, indicating that underlying demand will remain the main market driver – regardless of whether US/Chinese tensions mount or ease.