Letters Regarding the Draft Resolution of the CPC Central Committee on the Transformation of Capitalist Industry and Commerce and Amendments to the Draft Resolution [1] (November 1955) Comrades Shaoqi and Xiaoping [2]: I am sending thirteen copies of the draft “Resolution on the Transformation of Capitalist Industry and Commerce” for your review and disposition. This document was discussed by Chen Boda, Ke Qingshi [3], and myself, with Chen Boda drafting it. Due to time constraints, we did not have sufficient opportunity for thorough revision. Chen Boda may fly back on the 18th or 19th and can assist you in further deliberation. Given that provincial and municipal party committees lack ideological preparedness on this issue, it seems more appropriate to issue this as a draft following this meeting and adopt it at the next plenary session of the Central Committee scheduled for next spring [4]. As this is a major issue, it should be formalized as a resolution of the plenary session. These matters are hereby submitted to the Political Bureau for consideration and decision. I plan to return to Beijing within the next few days to attend the last one or two days of this meeting. The situation regarding agricultural collectivization has fundamentally improved. It is estimated that by next year, primary-level collectivization will be essentially achieved nationwide, with 80 to 90 percent of farming households joining cooperatives, which will greatly benefit agricultural production. To discuss this matter, I have also attached

a brief discussion on the transformation of industry and commerce. Accordingly, I convened secretaries from nine provinces here for a one- or two-day meeting. Details will be reported separately. Respectfully, Mao Zedong November 17, 4:00 a.m. Comrades Xiaoping and Shangkun [ ]: Please add the few sentences in parentheses below the title [ ] to this document, then proceed to typesetting. First, print seven trial copies and distribute them this afternoon to Liu, Zhou, Zhu, Chen Yun, Peng Zhen [7], Xiaoping, and myself (marking the revised sections beforehand). After another review, it can be officially printed. Mao Zedong November 29, 2:00 a.m. Printed according to the manuscript. Three The struggle against the “Three Evils” and “Five Evils” aroused a high degree of consciousness among the working class, repelling the bourgeoisie’s rampant attacks on state organs and the working class through “five poisons.” As a result, the former prestige of the bourgeoisie was completely shattered in the vast majority of enterprises. Although some capitalists still retained some influence in a few small and medium-sized enterprises, their standing had significantly declined compared with the past. This paved the way for workers’ supervision to gradually take root in many enterprises, effectively or substantially depriving many capitalists of control over their businesses. Five Our country’s working class, under the leadership of our Party and based on a solid alliance with the peasantry and the urban petty bourgeoisie, has also formed another alliance with the national bourgeoisie. Six However, achieving this did not come without a price. In order to establish and maintain this alliance and to use state capitalism as a transitional stage toward socialism, we had to pay a substantial material cost to the bourgeoisie. Specifically, rather than adopting a policy of confiscation, we opted for a policy of redemption regarding the bourgeoisie’s privately owned means of production. This policy emerged from China’s unique historical conditions.

It does not violate Marxist principles. Marx, Engels, and Lenin all acknowledged that, under certain conditions, a policy of redemption could be permissible and beneficial to the working class. Our method of redemption involves the working class, starting from the founding of the People’s Republic of China and over a period of approximately ten years, producing goods both to meet the needs of the people and the state and to generate a portion of profits for the bourgeoisie. Although capitalists receive less than one-quarter of these profits, over a decade the total amount could reach around 2 billion yuan. This is a gradual process of redemption, not an immediate one, nor does it require the state to allocate additional funds; instead, the working class achieves redemption by producing a share of profits for capitalists over a ten-year span. Seven First, we transform the bourgeois ownership system through redemption and state capitalism—remuneratively rather than gratuitously, gradually rather than abruptly. Second, while carrying out this transformation, we provide them with necessary employment arrangements. Third, we do not deprive the bourgeoisie of their right to vote and extend appropriate political appointments to those representatives who actively support socialist transformation and make contributions to this cause. Eight In the process of transforming capitalist enterprises, it is essential to emphasize educational methods and organize study sessions for capitalists. By gradually reforming these capitalists—from exploiters into self-reliant laborers—two educational approaches can be employed. The mass struggle against the “Three Evils” and “Five Evils” constitutes one such method, albeit a vigorous and unconsultative approach. Following this significant external yet entirely necessary education imposed by the people’s government and the working class in response to the bourgeoisie’s aggressive attacks, their offensive and resistance were largely crushed, thereby creating conditions conducive to adopting another educational strategy: delivering lectures, conducting classes, holding symposiums, organizing study groups, and, when appropriate, guiding internal criticism and self-criticism among capitalists. These measures aim to strengthen education, helping capitalists understand that the transition from capitalism to socialism is an inevitable and irresistible historical law, to recognize the connection between patriotism and socialism, to stay informed about current affairs and state policies, and to realize that accepting socialist transformation represents their only viable path. Among these educational methods, encouraging capitalists to engage in criticism and self-criticism deserves particular attention. This practice should be systematically promoted under leadership. Based on experiences across various regions, due to our country’s political and economic factors, coupled with intensified efforts to organize study among capitalists themselves, it has become possible to gradually increase the number of progressive elements within the bourgeoisie while reducing the ranks of moderates and conservatives, thus significantly curbing illegal activities among many capitalists. Therefore, to deny the possibility of transforming the vast majority (over 90 percent) of the capitalist class through educational methods, or to ignore and dismiss the critical importance of propaganda and education in the transformation of capitalists, would be tantamount to rejecting the specific conditions of the Chinese revolution, underestimating the formidable power of the people’s democratic dictatorship led by the working class, discrediting the Communist Party of China’s strong authority and capabilities, and questioning the correctness of its fundamental policy of forming alliances with the bourgeoisie and using state capitalism as a transitional form. Such views are undoubtedly entirely erroneous. Nine After the struggles against the “Three Evils” and “Five Evils,” some comrades still have not drawn the proper lessons. A tendency toward the right persists, and certain individuals remain corrupted by capitalists, losing their Party stance and assimilating to the interests of the bourgeoisie—for example, incidents similar to those at the Shanghai Pharmaceutical Factory and the Pencil Factory have occurred elsewhere. This is highly undesirable and requires education and correction. It must also be pointed out that the struggle against capitalist corruption and our own efforts to combat such corruption will be long-term; this issue cannot be resolved quickly. Nevertheless, after the “Three Evils” and “Five Evils” campaigns, overt right-leaning tendencies within the Party are no longer the primary concern. Instances of corruption do exist, but they are not numerous. What occurs most frequently within the Party is a tendency manifesting in “leftist” forms. Following these campaigns, the bourgeoisie has been isolated and feels anxious and directionless, seeking to draw closer to us. However, many comrades fail to grasp this change; frightened by the intensity of the “Three Evils” and “Five Evils” struggles, they harbor pessimism regarding the transformation of capitalist ownership and the bourgeoisie itself, fearing contact with capitalists. Some adopt a hesitant, ambivalent attitude, while others maintain a distant, reverential stance. They do not conduct a comprehensive analysis of the actual situation of the bourgeoisie, believing that acknowledging any positive aspects beyond its negative side might somehow “harm Marxism.” They neither advocate for the confiscation of capitalist enterprises nor do they trust that the Party, the masses, and the state possess the capacity to peacefully transform capitalist ownership and the bourgeoisie. Instead, they attempt to evade the practical task of transforming capitalist industry and commerce through simplistic methods like “squeezing out” the capitalists. Consequently, they allow themselves to fall into passivity. While appearing “leftist” on the surface, such tendencies are, in essence, right-wing. We must correct this erroneous,消极 attitude. Rather than abandoning leadership in the transformation of capitalist industry and commerce, we should engage in comprehensive planning and strengthen our leadership. Instead of remaining passive, adopting a hesitant or distant attitude, we ought to take proactive, earnest action by formulating a complete set of educational and publicity measures aimed at private industrial and commercial enterprises, ensuring that capitalist firms and individual capitalists receive information about the transformation as widely and promptly as possible. By doing so, we can more effectively alleviate capitalists’ concerns, stabilize their minds, and thereby accelerate the orderly progress of transforming private industry and commerce. Of course, this remains a complex class struggle, and we will inevitably encounter hesitation, indecision, complaints, and even resistance from some capitalists. However, if we adopt the aforementioned proactive, earnest approach and implement specific measures, we can weaken their resistance and hesitation, and reduce illegal activities such as capital flight. Simultaneously, because we have taken this proactive, earnest stance and implemented concrete measures, while simultaneously strengthening education and oversight for all Party members who interact with capitalists, the risk of right-leaning tendencies within the Party will be easier to prevent, potentially reducing the number of corrupted Party members. Without a doubt, all our correct policies, guidelines, and measures will mobilize the working class and the general public, isolating even the most recalcitrant capitalists and ensuring the ultimate victory of our socialist endeavor. Printed according to Mao Zedong’s revised version. Notes [1] Mao Zedong’s revisions to the draft “Resolution of the CPC Central Committee on the Transformation of Capitalist Industry and Commerce” consist of seven main sections, found in paragraphs (3) through (9) of this text. Text printed in Song typeface indicates content rewritten or added by Mao Zedong. [2] Xiaoping refers to Deng Xiaoping, who at the time served as Secretary-General of the CPC Central Committee and Vice Premier of the State Council. [3] Chen Boda was Deputy Minister of the CPC Central Committee’s Propaganda Department and Mao Zedong’s secretary. Ke Qingshi was Secretary of the CPC Central Committee’s Shanghai Bureau. At that time, they were together with Mao Zedong in Hangzhou. [4] The draft “Resolution of the CPC Central Committee on the Transformation of Capitalist Industry and Commerce” was formally adopted as a resolution by the CPC Central Committee’s Political Bureau after individual amendments on February 24, 1956. [5] Shangkun refers to Yang Shangkun, who at the time served as Deputy Secretary-General of the CPC Central Committee and Director of the Central Office. [6] Refers to Mao Zedong’s explanatory note for the draft “Resolution of the CPC Central Committee on the Transformation of Capitalist Industry and Commerce,” namely paragraph (3) of this text. [7] Liu refers to Liu Shaoqi. Zhou refers to Zhou Enlai. Zhu refers to Zhu De. Chen Yun was Secretary of the CPC Central Committee Secretariat and Vice Premier of the State Council. Peng Zhen was Alternate Member of the CPC Central Committee Secretariat and Vice Chairman of the Standing Committee of the National People’s Congress. 4£´

Letter to Huang Yanpei [1] (November 17, 1955) Mr. Renzhi: I have received your letter from the hospital [2]. I am extremely pleased to learn that you have fully recovered. I hope you will continue to take good care of yourself and regain your health. Progress has been made in the transformation of the industrial and commercial sectors, which is gratifying. However, it is necessary to intensify educational efforts to ensure widespread implementation across all industries and trades in large, medium, and small cities. It appears that the method of self-criticism can indeed be applied in the industrial and commercial sector, and the experience gained during this recent Federation of Industry and Commerce discussion [3] can be extended. Due to being away on a trip, I was unable to reply sooner. With best regards, Mao Zedong November 17, 1955 Printed according to the manuscript. Included in the Selected Letters of Mao Zedong. Notes [1] Huang Yanpei, whose courtesy name was Renzhi, was at the time Chairman of the China Democratic Construction Association and Vice Chairman of the Standing Committee of the National People’s Congress. [2] Refers to a letter dated November 5, 1955, written by Huang Yanpei from Beijing Hospital to Mao Zedong. In the letter, he reported that he had basically recovered after undergoing prostate surgery and stated: “Due to my hospitalization, I unfortunately was unable to personally receive the instructions delivered by the Chairman at the Hall of Benevolent Harmony. Nevertheless, I have learned the general outline through reports. I believe that the abundant harvest across most parts of the country should not be regarded as a gift from ‘Heaven’ in 1955, but rather as the result of the arduous efforts of farmers and their leaders. Cooperative organizations, improvements in technology, and especially the unified and highly enthusiastic work atmosphere—all these are attributable to ‘people,’ not ‘Heaven.’ Increased agricultural production will naturally lead to growth in light industry, but such further impetus for the socialist transformation of capitalist industry and commerce can only occur when production surges and people are filled with high spirits.” [3] Refers to a meeting held from November 1 to 21, 1955, by the Executive Committee of the All-China Federation of Industry and Commerce, during which they discussed Mao Zedong’s speech on the socialist transformation of capitalist industry and commerce delivered on October 29, as well as reports on the same topic presented by Vice Premier Chen Yun and General Chen Yi.£´ ６