Chapter 103 On State Capitalist Economy[1]

(July 1953) The vast majority of China's current capitalist economy is under the management of the people's government, connected with the state-run socialist economy in various forms, and supervised by workers.This capitalist economy is no longer an ordinary capitalist economy, but a special kind of capitalist economy, that is, a new type of state capitalist economy.It exists not primarily for the profit of the capitalists, but to supply the needs of the people and the state.It is true that the workers also produce a part of the profits for the capitalists, but this is only a small part of the total profits, about a quarter, and the remaining three quarters are for the workers (welfare fees), for the state ( Income tax) and for the expansion of production equipment (of which a small part is produced for capitalists' profits).Therefore, this new type of state capitalist economy has a great socialist nature, which is beneficial to the workers and the country.

Published according to Mao Zedong's manuscript. -------------------------------------------------- ------------------------------ note [1] This is a passage written by Mao Zedong in Minutes No. 7 of the Leading Group Meeting of the National Finance and Economics Conference held by the Central Committee of the Communist Party of China from June 14 to August 12, 1953.