Chinese Marxist-Leninists Oppose the Sale of Xu Gong

Chinese Marxist-Leninists want to protect state-owned industries and fight the restorationists’ plans to hand core state assets to foreign and local capitalists. The Xuzhou Construction Machinery Group (Xu Gong) is a major player in China’s construction and civil engineering industries.
Instead of defending the socialist ownership of a core state industry, the restorationists placed Xu Gong on the market, inviting tenders from home and abroad. The two main contenders were a private Chinese market rival, the Sany Group, and the US private equity giant Carlyle Group. Carlyle offered to pay US$375 million for 85% of Xu Gong in October 2005. Sany countered with what they said was an offer to pay 30% over and above the Carlyle bid. Apparently this offer was not favourably received, so in June of this year, Sany Executive Xiang Wenbo put the details on his blog, drawing attention to the dangers of "selling a big and important company like Xu Gong to a foreign company." Of course, he didn’t say anything about the dangers of selling Xu Gong to a private Chinese company! The issue was then taken up in November on the Chinese-language website www.maoflag.net (see image from main page above) which provides a forum for Marxist-Leninists in China to discuss issues of importance to the working class and its allies.I have translated the lead article on this issue, and a selection of responses, so that comrades internationally can see the issues facing Chinese Marxist-Leninists, the enthusiasm for engaging the restorationists in struggle, and the difficulties of organisation and practical activity. Whether it was related to this wave of opposition from the Left, or not, the restorationists revised the sale terms and it has now been announced that the sale of a 50% stake in Xu Gong has been approved by the Congress of Employees, as well as the Xuzhou City Government (the nominal owners of Xu Gong) and the Government of China’s East Jiangsu Province. Chairmanship of the new company’s board will remain with Xu Gong. The Carlyle acquisition is believed to be China's first leveraged buyout (i.e. financed by loans).
Final approval from China’s Ministry of Commerce is being awaited.

The voice of the Chinese proletariat follows:

Defend the Xuzhou Construction Machinery Group, Protect the Constitution, Take the Socialist Road

"A spectre is haunting Europe, the spectre of Communism".

In 1848, Marx and Engels published the "Communist Manifesto" and solemnly announced to the world: the Communist Party can summarise its theory in one sentence – the elimination of the private ownership of the means of production. The "Communist Manifesto" opened the way for the abolition of the private ownership of the means of production, for the establishment of public ownership of the means of production, for the liberation and development of the productive forces, for an end to social polarisation and the elimination of exploitation, for the realisation of prosperity for all, and finally, for the realisation of the grand era of the liberation of the proletariat of the whole world by Communism.

From the first salvoes of the October Revolution, Lenin led the Russian people to carry out the October Revolution. The spectre of Communism produced an historical giant who opened up the great era of the transition from capitalism to socialism. After Lenin’s death, Stalin led the people of the Soviet Union to establish the Soviet socialist system, and established the pattern of Soviet socialism suited to conditions of war and to the revolutionary times. He opened the way for the October Revolution to advance from capitalism to socialism, and for the improvement and development of socialism.

In 1949, Mao Zedong led the Chinese people to carry out the New Democratic Revolution and founded New China. After that, according to the actual conditions and at the right time, he introduced the socialist transformation and the socialist industrialisation of the whole nation, established the socialist system in China, brought about the first stages of China’s socialist industrialisation and made a powerful display of the superiority of the socialist system of public ownership in its initial stage.

Since the Third Plenary Session of the 11th National Party Congress, Deng Xiaoping, practicing the theme of an era of peace and development, put forward the reform and opening up of socialism, emphasising persisting in the system of public ownership as the main part, comprising more than 75% of the national economy, and implementing the unity of the planned and market economies. However, under the influence of the wrong trend in international and domestic ideology, since the 90s, much Government-led large-scale privatisation has been carried out, social polarisation has accelerated so that Deng Xiaoping’s serious warning of September 1993, "We propose that we must prevent polarisation, and in reality, the natural emergence of polarisation." In his "Selected Works", Deng Xiaoping stressed time and again, that if polarisation occurred, our reforms could be counted as a failure. Therefore, in 1993, Deng Xiaoping was already clear about the success or failure of the reforms and had concluded: Our reforms have failed. The failure to maintain the majority portion of the system of public ownership has caused polarisation, and the reality of the polarisation indicates that there is nothing left of majority public ownership. All the regulations in the Chinese Constitution regarding the system of the public ownership of the means of production entered an unprecedented crisis. This has produced for our country’s working class a great ideological weapon in knowing about the reform and the carrying out of the reform.

However, since 1993, Deng Xiaoping’s warning and conclusion certainly have not played the role that they should have. The transfer of state-owned enterprises to private ownership, and the moves for selling off to foreign investors has proceeded vigorously and rapidly and the evil consequences of this polarisation grow more and more rotten. This clearly indicates that the Party’s basic line of socialism in the initial stages is in danger, the basic system of socialist public ownership is in danger, the socialist Constitution of China is in danger, and the future and the fate of the Chinese nation and people is in danger!

At the present time, incidents of the transformation of state-owned enterprises to private ownership, including sale to foreign investors, are occurring one after the other without let-up. What is shocking is the large-scale foreign purchase of state-owned enterprises, namely, the purchase of the Xuzhou Construction Machinery Group (Xu Gong - see Xu Gong bucket lift trucks at a trade display above). This incident is the logical conclusion and ultimate outcome.

The experience of the privatisation reform is the disintegration of China’s equipment industry. Xu Gong was the well-spring of China’s engineering machinery industry and underpins this industry, and even China’s industrial and economic independence, as well as its strategic position. If Xu Gong is sold to foreign investors, it will definitely lead to a series of large-scale privatisations of state-owned enterprises that will tremendously damage Chinese economic and national independence. This is unconstitutional and in violation of Marxism-Leninism, Mao Zedong Thought and Deng Xiaoping Theory, is contrary to the concept of scientific development, contrary to the Party’s basic line, contrary to the strategic goal of a harmonious society. It is a foolish move bringing disaster on the people and the nation. The whole nation must come to understand this, unite, raise high the Constitution of the People’s Republic of China, protect Xu Gong, defend the Constitution, get active and take this opportunity to open up the whole nation’s struggle to restore majority public ownership of the means of production, and to firmly take the socialist road.

The Chinese nation has once again reached its most dangerous time! Therefore, I solemnly propose: rise up, unite. The Chinese proletariat and working people and all advanced people, jointly defend the Xuzhou Construction Materials Company, protect the Constitution, and take the socialist road!

The Marxist scholar,
Author of "New Socialist Theory"
Ceng Zhaoyu

Responses:

1. I support you, but can’t do anything about it. Power is not in the hands of real Marxist-Leninists.

2. I’m a Marxist-Leninist, and I’m also worried about the current situation in China. The change from public to private ownership indicates that we’ve been shaken from the road to socialism, and our Party’s ruling status has been shaken. Ours is a Party of the workers and peasants. The privatisation of state-owned enterprises threatens the interests of the workers and also threatens the class and mass foundations of our Party. Capitalist development is proceeding apace and a capitalist clique has emerged within our Party. They are corroding our Party, wishing to usurp the Party’s leading position. We must be careful. The National People’s Congress is no longer the people’s but the capitalists’. The NPC has lost its original character. It is the rich who occupy the General Assembly rather than the workers and peasants. We must resolutely eliminate capitalism, support the Communist Party, and take the socialist road.

3. I agree. We must unite. We must establish a "defending socialism" group and continue to struggle against capitalism. We must rally around the Party and respond to the Party’s call. Although the Old Man Chairman Mao has gone, I must hold high his flag and enter the struggle. Compatriots unite! For our country and people, for our Party, and for our Communist cause!
Respectful greetings to Comrade Ceng Zhaoyu!!! I’m willing to take part! Please inform me of the arrangements. (NB The Chinese term "laorenjia", or "Old Man", is a respectful term frequently applied to Chairman Mao". Mike-servethepeople).

4. Elder Brother Zhaoyu: I support your "Defend Xu Gong, Protect the Constitution". However, I think your article is too flattering towards the Great Deng and Deng Theory. Can those dirty things be compared to Chairman Mao and Mao Zedong Thought? Can they be equated?

5. "The Chinese nation has once again reached its most dangerous time! Therefore, I solemnly propose: rise up, unite. The Chinese proletariat and working people and all advanced people, jointly defend Xu Gong, protect the Constitution, and take the socialist road!"

6. A great initiative! I support you!

7. Unite! Struggle! Struggle! Destroy capitalism!!! Overthrow the capitalist- roaders!! Take the socialist road of Chairman Mao!!!!!