Central Directive Commenting on Bo Yibo’s [1] Report Concerning the Second Phase Deployment of the Shanghai Five-Anti Campaign
(April 5, 1952)

Comrade Bo Yibo, the Shanghai Municipal Party Committee, the East China Bureau, and all Central Bureaus and Sub-bureaus:

(1) We approve Comrade Bo Yibo’s report of March 31 (21 ) and instruct that this report be forwarded
Chuan
Bo Yibo, at that time Chairman of the Central People’s Government’s Commission for Economy and Inspection, had been dispatched by the CPC Central Committee to Shanghai to assist with the Three-Anti and Five-Anti campaigns.
[2]
Refers to Bo Yibo’s report dated March 31, 1952, addressed to Mao Zedong and the Central Committee, which provided a detailed analysis of industrial and commercial households in Shanghai and outlined the deployment for the second phase of the Five-Anti Campaign. The report stated: There are approximately 12,000 large capitalist and major industrial and commercial households in Shanghai, accounting for 7.4% of the total number of households, yet they employ 70% of all workers. Their economic weight far exceeds their numerical share. Regarding the second phase of the Five-Anti Campaign, it was decided to combine mass mobilization with targeted inspections. The specific plan was as follows: (1) Strive to resolve the issues of 2,000 key households, including 1,500 ordinary key households and 500 additional households belonging to 390 upper-level capitalists engaged in industry and commerce. For the ordinary key households, two approaches would be employed: those who refused to confess or confessed incompletely would be subject to inspection—targeting 500 to 800 such cases—while government pressure and mutual persuasion and denunciation among capitalists would be used to address the remaining cases. As for the 500 households owned by the 390 upper-level capitalists, worker and shop assistant denunciations would be encouraged within factories and stores, while each case would be handled individually according to its specific circumstances, generally allowing most to pass unscathed, with only a small minority facing severe punishment. (2) Allocate half of the municipal party committee’s resources to addressing the problems of small and medium-sized households, organized by district, street, or industry, with the goal of clarifying the situation regarding 30,000 such households. For the more than 60,000 family-run businesses and independent artisanal enterprises, a general call would be issued, with some cases resolved through registration and review by the Economy and Inspection Commission. (3) Continue to carry out the Five-Anti Campaign while maintaining production. It was decided to keep injecting currency into the economy, conducting procurement and processing contracts, and appropriately easing bank lending throughout April in order to sustain production. (4) Make full use of the experience gained during the first phase.

This is to be circulated for reference. (2) Enterprises owned by the big bourgeoisie, owing to their advanced technology, large workforces, and substantial output, are of greater economic and political significance than small and medium-sized private enterprises. In the past, some comrades tended to overemphasize the importance of the latter while underestimating the former. Similarly, in matters concerning the organization of the Chinese People’s Political Consultative Conference and the All-China Federation of Industry and Commerce, there was a view that priority should be given to small and medium-sized entities. Such an outlook is clearly incorrect. While it is indeed essential to organize small and medium-sized enterprises, swiftly clarify their issues during the Five-Anti Campaign, and promptly form a united front to strengthen momentum and isolate deeply entrenched “five poisons” speculators, we must, with considerable effort, also engage with the enterprises of the big bourgeoisie—except for the few wholly harmful speculators—and intensify trade union activities and Party organizational work. In the Five-Anti Campaign, we should treat different categories of big capitalists in a differentiated and appropriate manner, following the approaches adopted in Tianjin and Shanghai. All major and medium-sized cities are urged to take particular note of this point.
The Central Committee
April 5th
Chuan
The “five poisons” refer to five types of illegal conduct committed by certain capitalists: bribery, tax evasion, embezzlement of state assets, shoddy workmanship, and theft of state economic intelligence.