Today’s capitalist industry and commerce are necessary and beneficial to society.
It is justified that private industry and commerce should all be brought under the wings of the government, because this meets the needs of the people and improves the lives of the workers.
Of course, it is necessary for the capitalists to take away a portion of the profits.
Private industry and commerce will exist for a long time; we cannot implement socialism very quickly.
When will the day come when we need to launch an all-out offensive and abolish that portion belonging to the capitalists? According to the example of the Soviet Union, the time was very long.
They began collectivization in 1929, eliminated the kulak economy, and later pushed things too fast; therefore, in 1930, Stalin wrote an article titled "Dizzy with Success" [2].
So we must be prudent.
Now we have a vast state-operated industry and commerce, and we need to run these enterprises well.


There must be differentiation while treating all equally.
By differentiation, it means that the state-operated sector occupies the leading position and is progressive; reversing the positions will not do, because private industry and commerce are relatively backward. This point must be publicly explained; I have spoken about it with several capitalists.
In other respects, generally, they should be treated equally. Some things can only be accomplished gradually, such as purchasing, procurement, export, and the market.
The wage issue will also be resolved in the future.
In private factories, there can also be model workers and labor heroes, and there should also be production competitions.
Generally speaking, this policy is beneficial to the state and the people, and this benefit outweighs the benefit to the capitalists.
Issues of layoffs and unemployment relief should all be handled the same, treated equally, or as Comrade Chen Yun [3] said, "without discrimination between thick and thin."
This spirit is already contained in Article 26 of the "Common Program" [4], namely, overall planning and all-around consideration.


Printed based on the transcript of the speech preserved in the Central Archives.


Notes


[1] This is a speech by Mao Zedong at a meeting of the Political Bureau of the Central Committee of the Communist Party of China.


[2] See *Selected Works of Stalin*, Volume II (People's Publishing House, 1979 edition), pp. 238–244.


[3] Chen Yun (1905–1995), a native of Qingpu, Jiangsu (now part of Shanghai Municipality). At the time, he served as Vice Premier of the Government Administration Council and Director of the Financial and Economic Committee.


[4] Article 26 of the "Common Program of the Chinese People's Political Consultative Conference," adopted by the First Plenary Session of the Chinese People's Political Consultative Conference on September 29, 1949, stipulates: "The fundamental principle for the economic construction of the People's Republic of China is to achieve the goal of developing production and flourishing the economy through the policies of balancing public and private interests, benefiting both labor and capital, mutual assistance between urban and rural areas, and exchange between domestic and foreign trade."