Top Menu

China

Barclays Forex Scandal

The Tyranny of Monopoly-Finance Capital

A Chinese Perspective

Since the 1980s, economic growth in the core capitalist countries has been driven by an enormous expansion of financial capital, accompanied by steady deindustrialization. In recent years, the monopoly power of this financial capital has displayed increasingly tyrannical characteristics: it depends for its continued growth on ever-increasing indebtedness and dependence in developing nations, widening the divide between rich and poor and ultimately fostering state violence that serves to suppress popular resistance.… [Today,] military and monetary strength work together to profit from inequality and instability in emerging economies. | more…

Monthly Review Volume 68, Number 8 (January 2017)

January 2017 (Volume 68, Number 8)

Notes from the Editors

Shortly after the election of Donald Trump, the alt-right organization Turning Point USA introduced its notorious Professor Watchlist…, listing some 200 radical academics in the universities as dangerous professors. Stories regarding this list were soon being carried in major papers throughout the country. In contrast to David Horowitz’s list of “the 101 most dangerous academics in America” a decade ago, the current Professor Watchlist has behind it the new sense of power on the extreme right provided by Trump’s electoral victory.… There can be no doubt that this is part of an attempted new McCarthyism. In terms of its overall orientation, the alt-right strategy here resembles the Gleichschaltung (“bringing into line”) in 1933–35 in Hitler’s Germany, where intimidation was directed at all the major cultural institutions, including universities, with the object of getting them to align with the new dominant views. | more…

One Belt, One Road Map

One Belt, One Road

China's Strategy for a New Global Financial Order

In late 2013, Chinese premier Xi Jinping announced a pair of new development and trade initiatives for China and the surrounding region: the “Silk Road Economic Belt” and the “Twenty-First-Century Maritime Silk Road,” together known as One Belt, One Road (OBOR). Along with the Asian Infrastructure Investment Bank (AIIB), the OBOR policies represent an ambitious spatial expansion of Chinese state capitalism, driven by an excess of industrial production capacity, as well as by emerging financial capital interests. The Chinese government has publicly stressed the lessons of the 1930s overcapacity crisis in the West that precipitated the Second World War, and promoted these new initiatives in the name of “peaceful development.” Nevertheless, the turn to OBOR suggests a regional scenario broadly similar to that in Europe between the end of the nineteenth century and the years before the First World War, when strong nations jostled one another for industrial and military dominance. | more…

Chinase Marxism

A Theory of China’s ‘Miracle’

Eight Principles of Contemporary Chinese Political Economy

China’s rapid economic development in recent years is often characterized as “miraculous.” Talk of a “Beijing Consensus” or “China model” has become commonplace in academic debates. But as we have written elsewhere, “theoretical problems have started to emerge with regards to the very existence, content, and prospects of the China model.” The key question, then, is what kind of economic theory and strategy underpin this “miracle.”… [W]e hold that the country’s major recent developmental gains are the achievements of theoretical advances in political economy, originating in China itself, while the main problems that have accompanied China’s development reflect the damaging influence of Western neoliberalism.… We hope to clarify the official theoretical model behind China’s economic “miracle,” using the terms and concepts prevalent in China today. | more…

What is the TPP?

The Rhetoric and Reality of the Trans-Pacific Partnership

A View from China

Since announcing its foreign policy “pivot to Asia” shortly after the election of Barack Obama, the United States has made extensive use of its institutional and discursive power to encourage denationalization among developing countries whose economies chiefly rely on manufacturing and trade—part of its global strategic goal of expanding the hegemony of finance capital at the lowest possible cost. The development of the Trans-Pacific Partnership (TTP) is a case in point. This article analyzes the TPP’s strategy in targeting China, pointing out that the TPP is a battle for the terms of economic development and discourse in the twenty-first century, as well as an illustration of the ideology of technocracy and soft power. Lastly, we criticize the TPP’s erosion of economic sovereignty, which would effectively relegate the economies of developing countries to a form of semi-colonial extraterritoriality. | more…

Capitalism and Its Current Crisis

The “thirty-year crisis” of capitalism, which encompassed two world wars and the Great Depression, was followed by a period that some economists call the Golden Age of capitalism. Today, however, capitalism is once again enmeshed in a crisis that portends far-reaching consequences. I am not referring here to the mere phenomenon of the generally slower average growth that has marked the system since the mid-1970s. Rather, I am talking specifically of the crisis that started with the collapse of the U.S. housing bubble in 2007-8 and which, far from abating, is only becoming more pronounced.… The Western media often give the impression that the capitalist world is slowly emerging from this crisis. Since the Eurozone continues to be mired in stagnation, this impression derives entirely from the experience of the United States, where there has been talk of raising the interest rate on the grounds that the crisis is over, and inflation is now the new threat.… To claim…that the United States is experiencing a full recovery is, in terms of working class well-being and economic security, wrong. And if we consider the rest of the world, especially recent developments in the “emerging economies,” the situation is much worse. | more…

Monthly Review Volume 67, Number 5 (October 2015)

October 2015 (Volume 67, Number 5)

Fifty years ago this month, beginning in early October 1965 and extending for months afterwards, the United States helped engineer a violent end to the Communist Party of Indonesia (PKI). Between 500,000 and a million Indonesians were killed by conservative factions of the military led by General Suharto and by right-wing Muslim youth—all with the direct involvement of the CIA, the close cooperation of the U.S. Embassy and State Department, and the guidance of the Johnson administration’s National Security Council.… In forthcoming issues of Monthly Review we are planning to publish work on the Indonesian genocide, which, alongside the Vietnam War, constitutes a major turning point in the history of Southeast Asia in the period, and one of the most brutal acts of mass carnage inflicted by imperialism in the twentieth century. The dire implications of this carry down to the present day. | more…

“Dangerous Circumstances”

The Council on Foreign Relations Proposes a New Grand Strategy Towards China

The Council on Foreign Relations (CFR) is the think tank of monopoly-finance capital, Wall Street’s think tank. It is also a membership organization: the ultimate networking, socializing, strategic-planning, and consensus-forming institution of the dominant sector of the U.S. capitalist class.… It is the world’s most powerful private organization, the “high command” body of the U.S. plutocracy. The Council has an almost century-long history of forming study groups to plan the United States’ overall “grand” strategic policies. It sets the agenda for debate, builds consensus among both the powerful and attentive publics, and then inserts its own network of people into public office to implement its favored doctrines in the real world. One of its latest efforts, a study group on U.S. grand strategy toward China, completed its work and issued a report in March 2015—approved by the CFR board of directors—entitled Revising U.S. Grand Strategy Toward China. | more…

Imperialism in the Twenty-First Century

The globalization of production and its shift to low-wage countries is the most significant and dynamic transformation of the neoliberal era. Its fundamental driving force is what some economists call “global labor arbitrage”: the efforts by firms in Europe, North America, and Japan to cut costs and boost profits by replacing higher-waged domestic labor with cheaper foreign labor, achieved either through emigration of production (“outsourcing,” as used here) or through immigration of workers. Reduction in tariffs and removal of barriers to capital flows have spurred the migration of production to low-wage countries, but militarization of borders and rising xenophobia have had the opposite effect on the migration of workers from these countries—not stopping it altogether, but inhibiting its flow and reinforcing migrants’ vulnerable, second-class status. | more…

Neoliberal Co-optation of Leading Co-op Organizations, and a Socialist Counter-Politics of Cooperation

Many people think of cooperatives as small, locally owned businesses, such as groceries, cafes, or bicycle shops, where people can work in an equal and participatory non-capitalist organization. In reality, the U.S. co-op movement is tied to federal agencies whose agenda is promoting neoliberalism, both domestically and abroad, and the co-op movement itself has neoliberal leaders. Many co-ops in name are profit-driven capitalist corporations in practice. And even in the abstract, the co-op principles of smaller co-ops enable neoliberal cooperative politics. All of this, however, raises the question of what a co-op based on socialist values would be, and China’s Nanjie village provides a living example of that. | more…

The Ecological Civilization Debate in China

The Role of Ecological Marxism and Constructive Postmodernism—Beyond the Predicament of Legislation

China is facing many serious environmental issues, including pollution in the air, groundwater, and soil. These problems have increased since China surpassed Japan as the world’s second-largest economy—and in spite of the Chinese government’s 2007 proposal to build an “ecological civilization,” and writing “ecological civilization” into the Chinese Communist Party’s (CCP) constitution in 2012. Take air pollution as an example; not long ago, cities such as Beijing, Tianjin, and Shanghai witnessed record-breaking smog. Concentrations of fine particulate matter (PM 2.5) reached more than forty times recommended safety levels. In China, up to half a million die each year because of air pollution, according to Chen Zhu, the former health minister of China.… What caused these serious environmental problems? A prevailing explanation is that China “lacks the rule of law”—especially environmental law.… Besides the legal issue, there are three factors responsible for China’s severe ecological crisis: (1) seriously underestimating the power of interest groups and the harmful consequence of capital; (2) the worship of growth or development; (3) an anthropocentric worldview. | more…

China’s Grain Production

A Decade of Consecutive Growth or Stagnation?

China’s official statistics showed that the country’s grain production declined from 512 to 431 million tons between 1998 and 2003. However, according to the Chinese government, since 2004 it has achieved “ten years of consecutive growth” in grain production. According to the official statistics, China’s grain production reached 602 million tons in 2013, nearly 40 percent above the 2003 level.… While the official statistics claim grain production has grown rapidly, China’s surging imports of cereals and soybean suggest that its grain production has struggled to catch up with demand.… This article argues that China’s actual grain production levels may be substantially lower than the officially reported levels; in fact, grain production has stagnated since the late 1990s. | more…