Notes by Mao Zedong on a Transcript of Remarks Delivered at the Industrial and Commercial Group Discussion of the National United Front Work Conference (April 1950)  1. Where the transcript states: “Today our principal adversary is the bourgeoisie,” Mao wrote: “Today our principal adversaries are imperialism, feudalism, and their lackeys—the remnants of the Kuomintang reactionaries—not the national bourgeoisie. There is indeed a struggle against the national bourgeoisie, but we must also unite with it, adopting a policy of both unity and struggle in order to bring about its cooperation in the common development of the national economy.”

2. Regarding the passage on restricting and squeezing private industry and commerce, Mao noted: “What ought to be restricted and squeezed are those enterprises that are detrimental to the national economy and the people’s livelihood—namely, speculative businesses, as well as industries producing luxury goods and superstitious articles—not legitimate enterprises that benefit the national economy and the people’s welfare. On the contrary, when such enterprises encounter difficulties, they should be assisted so that they may develop.”

3. Concerning the remark that private industry and commerce “demand separate spheres of influence, insisting that rivers and wells should not interfere with each other, which we will not permit,” Mao commented: “Spheres of influence should indeed be delineated—that is, lines of business should be clearly defined. This view is quite naive.”

4. With respect to the statement that “the state-owned sector is to develop without limit,” Mao wrote: “That is a long-term goal; at the present stage it is impossible to allow unlimited expansion. We must simultaneously make use of private capital.”

5. On the assertion that “our policy is to ‘compete with the people for profit.’ But what they mean by ‘the people’ is the bourgeoisie. We, however, seek to compete only in matters that benefit the people. They claim that we are practicing the principle of ‘allowing officials to set fires while forbidding commoners from lighting lamps.’ Yet here the ‘officials’ are the people themselves: we may set fires, but if you light lamps, that would violate the interests of the masses,” Mao remarked: “This is an entirely erroneous statement.”

6. As for the claim that “‘competing with the people for profit’ is manifested in the control of grain, cotton yarn and cloth, matches, general merchandise, and salt,” Mao noted: “With the exception of salt, boundaries should be established; we should not monopolize everything.” He further instructed: “Control should be exercised only over certain key commodities—in fixed quantities—for example, one-third of the grain supply, along with coarse cloth, oil, and coal.”

7. In response to the suggestion that “a department store must be established; otherwise price stability cannot be maintained,” Mao stated: “The establishment of a department store does not mean that it will replace all other forms of commerce.”

8. Regarding the remark that “if a large capitalist wishes to suspend operations, we should let him do so. If we have the funds, we can simply take over his enterprise,” Mao declared: “This is incorrect.”

Printed according to the manuscript; an introductory note has been added by the editor.