The big difference between the economic structure in the Western capitalist nations (the US in particular) and that of China’s economic structure is in planning national development. They are engaged at the moment in shaping the next five-year plan, which has just begun, and are dealing with the macro-economy, which establishes the major goals and the economic planning for industrial growth and the advancement of living conditions of the people in the undeveloped areas (which happen to represent two-thirds of their land area and population). They are even considering slowing up the rate of growth of the economy from the annual 9 percent of a phenomenal thirty years since a major problem is the development of industrial laborers’ skills and experience, which would guarantee accomplishment, considering 7 ½ percent annual in the coming few years.
The Beijing Review of February 24th, which we just received, has an article on issues confronting the macro-economy presenting ten areas of concern which give an indication of their consideration of economic functions and planned accomplishments to resolve human problems. We particularly note concern with income distribution, which not only seeks to improve the living standards of working people but shows a concern with the distribution of wealth in the private sector, which requires special attention to maintain harmonious relations between economic groups and national obligations of the wealthy without denying the existence of private corporate and business activity that are part of industrial growth at the base of national development and elimination of feudal backwardness. One big problem that they will be facing is training wage labor in the building of industrial enterprise as a determining factor in the rate of growth.
We hope this article gives you insights into the manner in which the economic questions are dealt with from a developing socialist point of view. We also want to warn not to take the specific developments in China as a model of socialist development. Must bear in mind that each country will have a range of developmental necessities that reflect the national history, culture, the level of economic development, and social relations.