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This is a brilliant study of China, which proves that capitalism has indeed been restored there. China's capitalist class launched its coup d'etat in October 1976, after Mao had died in September. This led to vast purges in 1977-79 and 1982-83. In 1979 a new Criminal Law listed 14 'counter-revolutionary offences' punishable by death. Deng Hsiao-Ping said, "Streamlining organisations constitutes a revolution." In 1982, 5,000,000 people were purged from the party and the state; in Beijing municipality alone, 200,000 government employees were sacked. In 1983, 5,000 people were executed. Between 1965 and 1975, GNP rose by 9.6 per cent a year, industrial production by 15 per cent a year, and the production of machinery increased fourfold. Between 1965 and 1978, national income rose by 7.7 per cent a year, gross industrial output by 27.2 per cent a year, and agricultural production by 4 per cent a year. But in 1980, heavy industry grew by only 1.6 per cent and in 1981 it fell by 4.5 per cent. In 1981, China's economy grew by just 1.7 per cent. In China, as in Russia, the small scale of private farming, based on individual household work, prevented the application of farm machinery and prevented necessary investments in improving irrigation, water conservancy, environmental conservation and infrastructure. The people had to remove this structure in order to modernise agriculture and create agricultural surpluses. They created mutual aid teams, working collectively, and moved towards setting up producers' cooperatives, where land, implements and cattle were pooled, and then further towards socialised cooperatives, with collective land ownership. After Mao's death, China adopted the household responsibility system, farming was decollectivised and the rich peasant economy was restored. Land use was privatised, leading to the restoration of private ownership of the means of production. Farm machinery and land became concentrated in the hands of the rich peasantry. Commercial cash crops were developed, agricultural markets liberalised and US agro-business entered the Chinese economy. This was all at the expense of a dependent, fragmented poor peasant economy. The government adopted an open door policy for foreign capital. This brought the liberalisation of trade, the development of major financial and industrial joint ventures, the setting up of special economic zones, coastal free ports, trading areas and development zones, and the development of cheap labour export processing industries.Was this review helpful? Yes NoThank you for your feedback. Report this reviewThank you, this review has been flagged.