The capitalist economy in China today is overwhelmingly an economy managed by the People’s Government, linked in various forms to the state-operated socialist economy, and supervised by the workers.
This capitalist economy is no longer an ordinary capitalist economy but a special kind of capitalist economy, namely, a new-type state-capitalist economy.
It exists primarily not for the profit of the capitalists but to meet the needs of the people and the state.
True, the workers still produce a portion of the profits for the capitalists, but this accounts for only a small part of the total profits—roughly about one-fourth. The remaining three-fourths are produced for the workers (welfare funds), for the state (income tax), and for expanding production facilities (a small portion of which goes toward producing profits for the capitalists).
Therefore, this new-type state-capitalist economy is strongly socialist in nature and is beneficial to the workers and the state.
Printed from Mao Zedong’s manuscript.
Note 1: This is a passage written by Mao Zedong in the seventh issue of the minutes of the leading group meeting of the National Finance and Economics Conference convened by the Central Committee of the Communist Party of China from June 14 to August 12, 1953.