(July 9, 1953)

* This is Comrade Mao Zedong's comment on a document from the National Financial and Economic Work Conference in the summer of 1953.

China's current capitalist economy, the vast majority of which is under the management of the People's Government, is connected with the state-owned socialist economy in various forms, and is a capitalist economy supervised by workers. This kind of capitalist economy is no longer an ordinary capitalist economy, but a special kind of capitalist economy, namely, a new type of state capitalism economy. It exists mainly not for the profits of capitalists, but for the needs of the people and the state. It is true that workers still have to produce a portion of profits for capitalists, but this only accounts for a small portion of the total profits, about only a quarter or so, and the remaining three-quarters are produced for the workers (welfare funds), for the state (income tax), and for expanding production equipment (which includes a small portion for producing profits for capitalists). Therefore, this new type of state capitalist economy has a large socialist nature and is beneficial to workers and the state.

(Selected Works of Mao Zedong, Volume V, People's Publishing House, April 1977, 1st Edition, p. 88)