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Is China an Imperialist country by the definition of Lenin’s Scientific Imperialism theory? 3- The Economic Transition

Is China an Imperialist country by the definition of Lenin’s Scientific Imperialism theory?

3- The Economic Transition – NEP vs. China's "Socialist Market Economy"

"It is necessary to analyze each particular case from the standpoint of its concrete conditions, without being limited by abstract definitions." Lenin, Once Again on the Trade Unions

To understand China's contemporary economic policy, we must first understand the Leninist tradition it continues. The New Economic Policy (NEP), introduced by Lenin in 1921, was a strategic retreat from the strict command economy of "War Communism”. NEP was often interpreted as a return to capitalism. It was not a surrender to capitalism but a calculated maneuver to rebuild the productive forces of a devastated Soviet state. The NEP allowed for: limited private trade in agriculture and consumer goods, small-scale private enterprises in manufacturing and services, foreign concessions to attract technology and investment. All under state control, called "state capitalism, " where large-scale industry, banks, transport, and foreign trade remained firmly in the hands of the proletarian state.

3.1- The Leninist Precedent: What Was the NEP?

"The New Economic Policy is a special policy of the proletarian state, which guarantees the building of the socialist economic foundations." Lenin, various works on NEP

The NEP (1921–1928) replaced War Communism with a mixed economy by allowing private trade, small-scale private industry, and foreign concessions, while the state retained control of the large-scale industry, banking, transport, and foreign trade. Lenin called this "state capitalism" under proletarian control, precisely to resurrect productive forces devastated by civil war.

"We are revolutionaries, we don't understand business"

In his political report to the 11th Congress of the RCP(b) on March 27, 1922, Lenin sharply criticized the practice of placing loyal but inexperienced communists in leadership positions in commerce and industry:

"We need to structure our entire organization so that the head of a commercial enterprise is not one of us who lacks experience in this field. ... We often put a communist—an undoubtedly honest man, tested in the communist struggle, who has been in prison—at the head of an institution, but this man cannot do business, and therefore he is placed at the head of a state trust. As a communist, he possesses all the indisputable advantages. However, the merchant will still cheat him—and he will be right to do so, because the best and most loyal communist has been put in a position where what is needed is a shrewd, conscientious shop assistant. The shop assistant will do the job better than the most loyal communist. ... How many communists do we have sitting in state institutions? We have a vast amount of material, solid works that would delight the most meticulous German, but what is the result? ... We do not know how to do business!" Lenin, report to the 11th Congress of the RCP(b)

What Lenin was saying in simple words is that revolutionaries understand revolution and struggle, but they do not understand commercial operations. Therefore, they must borrow the expertise of those who do, whether they are domestic "bourgeois specialists" or foreign capitalists and technicians. It is obvious for ML that that applies to the conditions of Russia and similar countries then and now, especially to those colonies and ex-colonies where feudalism is dominant.

Regarding concessions in resource development to foreign capital, Lenin explicitly stated in his report on the concession system to the 8th All-Russian Congress of Soviets on December 21, 1920:

We give him [the foreign capitalist] 50%–75% of the oil."

In another passage, Lenin elaborated more systematically on this line of thinking:

"We have a million dessiatines of virgin land that we are unable to cultivate because we have no draft animals and no necessary implements, whereas with tractors this land could be plowed to any depth. Therefore, it is profitable for us to lease out this land. Even if we give away half, or even three-quarters, of the product, it does not matter to us—the main thing is not that..."

Lenin's logic was that it is better to let foreign capital develop idle resources, even if it means giving up the majority of the output, because acquiring technology, equipment, and the opportunity to learn is far more important.

3.1.1- War on another plane

In a recorded speech on April 25, 1921, Lenin systematically explained the meaning of concessions:

"The Soviet government invites foreign capitalists who wish to obtain concessions in Russia. What is a concession? It is a contract between the state and the capitalist, under which the capitalist undertakes to establish or improve production (for example, timber felling and floating, coal, oil, ore extraction, etc.), paying the state a portion of the extracted product in return, while keeping another portion as profit."

"The Soviet government drove out the Russian landlords and capitalists, and now it invites foreign capitalists—is this right? Yes, it is, because if the workers' revolution in other countries is delayed, we will have to make certain sacrifices, solely to rapidly -even immediately -improve the condition of the workers and peasants." Lenin, "On the Concession System and the Development of Capitalism,"

In 1920, Bukharin published an article in issue No. 4 of the journal “Communist Revolution”, systematically expounding the strategic significance of the concession system:

"Through concessions, we allow individual foreign capitalists to make profits, but we weaken world capital as a whole, because in our struggle against it, we strengthen Russia by additionally acquiring technical equipment, and thus we change the balance of forces—this is the significance of the concession system (in the economic sense) in the great struggle between socialism and capitalism."

"For the sake of the current profit, the 'mess of pottage' (meaning the products manufactured in Russia and exported abroad that the capitalists need)—the capitalists sell out and betray the common interests of international capital, which, in its own interests, should have been a strict and merciless blockade, that is, completely cutting off Russia from the sources that accelerate its technological renewal and revival."

Bukharin's argument was that “ concessions are not a capitulation to capitalism, but a form of warfare; using economic interests to divide international capital, inducing individual capitalists to betray the blockade strategy of the international bourgeoisie as a whole for the sake of immediate profits.

3.1.2- Paying “tuition fees”  to Foreign Capital and "Learning to Do Business"

In his book “Private Capital in the Soviet Union”, Yuri Larin analyzed the necessity of introducing foreign and private capital from another perspective:

"It is well known that we established the New Economic Policy (NEP) with both external and internal considerations in mind. Admittedly, the external considerations (the possibility of an influx of foreign capital to boost our economy) have so far not yielded many results (although the results are gradually increasing). But the internal considerations have fully justified themselves."

Larin further pointed out that the core reason for introducing private capital was not a lack of money, but a lack of skills:

"Allowing [private capital] was inevitable, not so much because we lacked the funds to launch state commodity circulation, but because we did not know how to implement such commodity circulation within the framework of a market economy. ...' We don't know how to do business'—this is what Comrade Semkov said to Comrade Lenin at the Moscow Provincial Party Conference in 1921."

"What the bourgeoisie brought was not capital, but the ability to operate within market economic relations, and we were forced to hand over our commodity funds and money to them. Production (industry) remained in our hands... but the market linkages between different parts of the economy (and often between different state-owned enterprises) fell into the hands of the bourgeoisie. For this, they naturally rewarded themselves handsomely, and for us, this was 'paying tuition fees'."

Larin's exposition clearly articulates the core logic of introducing foreign and private capital during the NEP period: it was not a shortage of capital, but a shortage of the ability to "do business".

3.1.3- Scale of Foreign Investment

On November 23, 1920, the Council of People's Commissars promulgated the “Decree on the General Economic and Legal Conditions for Concessions”, which explicitly aimed to attract foreign capital for "the accelerated restoration of the large-scale state economy." The government guaranteed that the property of concessionaires would not be nationalized, confiscated, or requisitioned.

During the Soviet period, there were over 350 foreign concession enterprises (including both industrial and commercial). By the end of the 1920s, only 59 concession enterprises, 6 joint-stock companies, and 27 "operating permits" remained. 1- (See note for details)

After 1928, the Soviet government shifted toward signing individual technical assistance contracts with Western firms and hiring foreign specialists. On December 27, 1930, the Council of People's Commissars passed a resolution terminating all concession contracts (with a few exceptions). By 1933, all industrial concessions had been liquidated.

3.1.4 NEP & State capitalism

"We are not afraid of state capitalism in a country where the dictatorship of the proletariat is preserved." Lenin, various works

Lenin was explicit about his strategy. He argued that state capitalism under the dictatorship of the proletariat was a necessary stage to overcome the backwardness of the Russian economy (one has to consider the Chinese economy then with a population of 800 million). The purpose was not to restore capitalism but to strengthen the socialist state by utilizing capitalist methods.

"State capitalism would be a step forward compared with the present state of affairs in our country. If we had state capitalism in Russia, the transition to full socialism would be easier and more assured." — V.I. Lenin, “The Tax in Kind”

Unlike the common perception, Mao’s belief that “political capital,”  the economic capital of the bourgeoisie, should not be subject to total expropriation, at least until it can serve the development of the national economy, is not contradictory to Lenin’s approach and precautions.

In October 1920 Lenin declared,

“We want to transform Russia from a poor and needy country to a rich country”. Lenin, The Tasks of the Youth Associations

In his 1928 speech, Stalin explicitly argued that in a transitional socialist state, developing capitalism under strict state control is not a betrayal of socialism but a necessary detour to build the industrial base that socialism requires. He famously said that a certain development of capitalism is inevitable in a country emerging from feudalism, and that

"whoever does not understand this understands nothing about Marxism." Stalin, On the Right Deviation and his comments on Comrade Yurov

The NEP was a dialectical solution for the proletarian state using the tools of capital to defeat capital's influence, creating the material conditions for socialism. It was a tactical retreat that allowed for limited private trade, small-scale capitalism, and foreign concessions to rebuild the productive forces destroyed by civil war and war communism. NEP was an essential tool to overcome the mass poverty and starvation that followed the catastrophe of World War I and the civil war.

The NEP had nothing to do with the restoration of bourgeois and capitalist power but was a tool for the reconstruction of the economy and the development of the productive forces. In March and April 1918 Lenin stated that

“compared to workers in the most advanced nations, the Russian is a bad worker”; therefore, he must “learn to work,” assimilating critically the “rich scientific achievements” of the “Taylor system” developed and implemented in the North American Republic.  Lenin “The Immediate Tasks of Soviet Power”

Stalin made a similar statement:

“If they really wanted to be at the height of “principles of Leninism,” they should try to weave “Russian revolutionary impulses” with “the practical American approach” (Stalin, The Foundations of Leninism)

The debate, considering the differences in conditions in each country, should be: “Lenin utilized state capitalism under the dictatorship of the proletariat in the Soviets; whether China's contemporary policy is a continuation of this Leninist tradition or a departure from it?”

China comparison

The Chinese Communist Party, which seized power at the national level in 1949, had already begun to exercise its power in one region or another since the 1920s. That's why China, in general, was characterized by the coexistence of different forms of economy from the start.  As early as January 1940, Mao Zedong clarified the meaning of the revolution taking place at that time:

Although such a revolution in a colonial and semi-colonial country is still fundamentally bourgeois-democratic in its social character during its first stage or first step, and although its objective mission is to clear the path for the development of capitalism,  it is no longer a revolution of the old type led by the bourgeoisie with the aim of establishing a capitalist society and a state under bourgeois dictatorship. It belongs to the new type of revolution led by the proletariat with the aim, in the first stage of establishing a new-democratic society and a state under the joint dictatorship of all the revolutionary classes. Thus this revolution actually serves the purpose of clearing a still wider path for the development of socialism.”  Mao, On the New Democracy

China's Reform and Opening-up, starting in 1978 with the slogan  “that poverty is not socialism, that socialism means eliminating poverty,” operated on an identical theoretical logic: dismantling the ultra-centralized Soviet-style wartime command economy, allowing township-village enterprises, private firms, and massive foreign direct investment, while keeping the banking, energy, telecom, defense, and infrastructure firmly under state/public ownership. In both cases, the Party/State retained ultimate political control. The bourgeoisie is not allowed to form an independent political party or take over the state apparatus. Capital is strictly subordinated to political directives: industrial policy, five-year plans, poverty alleviation, technological self-reliance.

However, the reaction was not so much different than that against the Soviet NEP.  Lenin in the “Political Report” sarcastically wrote:

“Seeing that we were withdrawing, some of them scattered, childishly and shamefully, even with tears, as happened at the last large session of the Executive Committee of the International Communist Party. Motivated by the best communist sentiments and the most ardent communist aspirations, some friends burst into tears.” Lenin, “Political Report” Lenin  presented to the XI Congress of the Communist Party, March 27, 1922

Similarities lie in the fact that both the Soviet and the Chinese economic reforms were preceded by widespread poverty and shortages that could have caused large-scale starvation. For both, total political expropriation of the bourgeoisie did not equal total economic expropriation

3.2- How China's EP Differs from the NEP

"Politics cannot but have precedence over economics."  Lenin, various works

It is expected that China's practice as an ex-colony differs significantly from the early Soviet policy.

Where do the scale and context differ? It differs in duration and scope: The NEP lasted only about 7 years and was relatively small in scale. However, it continued under a different name  (First Five-Year Plan) and form during Stalin's time when full agricultural collectivization took over, and by 1931, entire foreign concessions were terminated.  China's EP has lasted over 40 years and integrated a colossal population into global capitalism. This makes the contradictions of capital, unequal distribution, regional disparities, environmental degradation, and commodification of social life much more pronounced and harder to manage than during the NEP. The NEP operated in a largely isolated global system. China's reforms occurred during the peak of neoliberal globalization, meaning Chinese state capital now interacts with, and has to compete against, the most advanced finance capital in the world. This creates intense pressure that occasionally blurs the lines, but has not changed the fundamental class ownership of the state.

The NEP was designed for a devastated, isolated agrarian state with a small industrial base. China's contemporary economic policy operates on a vastly different scale, a globally integrated, technologically advanced, and interacting with the world capitalist system in ways Lenin could not have anticipated. However, the “principle” remains identical: “the political power of the proletarian state subordinates the economic power of capital. The difference is one of degree, not of kind.

The Soviet Union initially confiscated all foreign investment; China initially maintained and utilized it, gradually replacing it through denationalization. Chinese leaders more directly inherited Lenin's ideas on utilizing foreign investment and capitalism from the "New Economic Policy." When explaining joint ventures in 1950, Mao Zedong explicitly cited the fact that "Lenin also proposed and some concessional enterprises appeared in the Soviet Union after 1921 when it implemented the New Economic Policy" as evidence. In the early years of the People's Republic of China, private and foreign-invested economies were allowed to exist and develop, but ultimately they were transformed into public ownership through methods such as "socialist transformation."

Unlike the Soviet Union's early experience facing imperialist armed intervention, the new China selectively accepted large-scale aid from the Soviet-led socialist bloc within the Cold War framework.  Therefore, China's early policies on foreign investment and private economy can be seen as a unique practice within the framework of Leninist theory, combined with the country's national conditions and the international environment.

Let’s study the question of  "accounting and control" as a concrete manifestation of the core question of "who rules" in socialist practice, especially under NEP conditions.

Similarities in “accounting and control”

Lenin emphasized that socialist construction requires "the calculation and supervision of product production and distribution." The relationship between "political capital" and "economic capital," as well as the mechanisms of "accounting and control," are the key to understanding the economy, especially under NEP conditions. This is not merely a technical issue of fiscal and tax supervision, but a fundamental question of how to manage capital and prevent its alienation in socialist practice.

For state-owned enterprises, which occupy a dominant position in strategic sectors, the core of supervision is to prevent insider control and the loss of state-owned assets. The main means include:

Financial and Accounting Supervision, Penetrative Supervision, Data Penetration, Standard Penetration, Business Penetration, Entity Penetration, Budget and Revenue Management, Guiding the Private Sector, Reverse Mixed Ownership "Reform", Tax Leverage Regulation, Legislative Norms, Precise Regulation, Foreign Investment Management, Pre-establishment National Treatment + Negative List, Security Reviews and Countermeasures. (2-See note section for details)

In summary, although it has nuances based on the concrete conditions of each, the "accounting and control" mechanism used in the Soviet Union and in China is not a single approach, but a multi-layered, differentiated, and complex system. In China:

1. For the state-owned economy: The core is "controlling". Through "penetrating" financial supervision and budget management, it ensures the stability and reliability of its economic foundation as "political capital."

2. For the private economy: The core is "guiding". Through market-oriented means such as state-owned capital participation (reverse mixed ownership) and taxation, its development is brought into the national strategic track.

3. For the foreign-invested economy: The core is "delineating boundaries". While opening up through a "negative list," it safeguards national security through a security review mechanism. This mechanism technically answers the question of "how to control," aiming to achieve "calculation and supervision" of various types of capital to varying degrees through financial, tax, and administrative means, preventing any single capital force from challenging "political power."

Contemporary Chinese practice is precisely seeking a technical answer to this theoretical problem: by establishing a comprehensive regulatory system covering finance, taxation, and administration, to effectively guide, supervise, and constrain "political capital" over "economic capital." China's "Socialist Market Economy" is the dialectical development of the NEP in the 21st century. It recognizes that: 1)  Productive forces must be developed to their highest potential before the full transition to communism is possible. 2) Market mechanisms can be utilized to allocate resources efficiently, generate innovation, and create wealth. 3) Private capital can be tolerated and even encouraged but only under the strict supervision and direction of the socialist state.

The scale of China's integration with global capitalism makes it a target for accusations of "imperialism." But the accusation confuses “integration with the global market” with “domination of the global market”. China participates in the world capitalist system; it does not seek to control it for super profits through colonies or subjugating other countries.

3.3- China’s State Capitalism-– Data on State Control, mechanism of “economic capital” control

"The transition from capitalism to communism represents an entire historical epoch. Until this epoch is terminated, the capitalists will stubbornly attempt to restore capitalism." Lenin, various works

As far as “state capitalism" is concerned, the difference between a capitalist country and a socialist, people's democracy country is that, in capitalist countries "state capitalism" is a phase for the transformation of the major industries to private industries. This is sharply manifested in the fascistization of political systems like in Germany, Italy, and Japan. In a socialist and/or people's democracy, it is the phase to monopolize the large industries under private control to the State. The purpose of each is contradictory. The same happened in Soviets and China for the purpose of nationalizing the banking and heavy industries and (in semi-feudal countries) to increase productivity, letting capitalism develop under state control. 

To prove China is "imperialist," one must first prove that "the Chinese state is controlled by the capitalist class" and that "the Chinese Communist Party is an instrument of the bourgeoisie." From the perspective of classical Marxist theory, this judgment touches upon fundamental definitions of the nature of the state (instrumentalism vs. relative autonomy) and the nature of the party (vanguard vs. class agent). This is indeed not something that can be easily falsified or verified through mere data.

There are clear legal provisions and a complete set of institutional mechanisms to ensure the leadership of the Communist Party of China and fundamentally prevent the emergence of an independent political party representing the interests of the bourgeoisie or for that class to seize state power. This mechanism can be understood on two levels: first, the fundamental constitutional and legal guarantees, which provide the highest legal foundation for the entire system; and second, the specific systems and organizational structures built and operated on this basis, ensuring the implementation and enforcement of these principles in daily political life.

Constitutional and Legal Guarantees: Establishing Fundamental Principles (3- See notes section for details)

Furthermore, a socialist public ownership-based economic foundation can fundamentally prevent the formation of private privileged interest groups. Moreover, unlike capitalist countries, socialist countries openly declare the dictatorship of the proletariat and do not allow parties representing bourgeois interests to share power.

In conclusion, China's constitutionally established state nature, and party system, along with the comprehensive political operating mechanisms built upon them, together constitute a solid legal and institutional barrier against the bourgeoisie forming independent political parties or seizing state power.

3.4- China’s stock market, Billionaires in China

The Soviet Union did not have a conventional stock market for private company shares during most of its existence. After the 1917 revolution, the Bolsheviks abolished private enterprise and shut down all stock exchanges, replacing the economy with a state-controlled central plan

The stock market in China has no overall economic significance yet it is too large to be insignificant. It is “not” a primary indicator of national economic health, unlike the US where the S&P 500 is closely tied to consumer spending and pension funds. (9- See notes for details)

China is focused on economic growth, reinvesting in the tangible economy, not in the stock market.

China’s Gross Fixed Capital Formation (investment in infrastructure, factories, machinery) averages ~42% of GDP annually, compared to the US at ~21%. China reinvests its surplus directly into physical production. Conversely, Chinese companies pay very low dividends (average dividend yield is ~2.5% vs. the US ~5.5%) because profits are legally required or strongly encouraged to be reinvested into Research and Development  and capital expansion rather than returned to shareholders.

China’s policy favors labor over capital, especially in state-owned enterprises. SOEs are mandated to maintain employment stability. During economic downturns, SOEs are ordered to over-hire to absorb unemployment, prioritizing social stability over profit margins.

Cracking down on financial investments on 'money, preventing a rentier economy in the private sector. Since 2020, the CCP has waged a deliberate war on "financialization without industrialization." Important examples:

Ant Group (2020): Jack Ma's fintech IPO (Initial Public Offering) was valued at ~$300 billion, but it was canceled hours before listing. The company was forced to restructure as a financial holding company, dramatically reducing its valuation and preventing a "shadow banking" empire.

Private Equity Crackdown: In 2023-2024, regulators forced hundreds of private equity firms out of business and banned "club deals" where billionaires used leveraged buyouts to extract profits without creating new factories.

Regulation on "Chaotic" Capital: The official "Common Prosperity" campaign explicitly targets "excessive capital expansion" in internet platforms (Tencent, Alibaba) that prioritized financial gaming over industrial innovation. Fines exceeded $10 billion USD cumulatively, with directives to pivot spending toward "hard technology" (chips, AI, biotech).

Due to harsh regulations, the billionaires in China have stocks in real tangible industries, rather than in a 'stock Market'." Concrete Data:

Of the top 20 Chinese billionaires, the majority derive their wealth from manufacturing, EVs (BYD), batteries (CATL), solar panels, and consumer appliances. Contrast this with the US, where the top billionaires derive wealth from financialized tech platforms (Apple, Microsoft, Nvidia) whose valuations are driven by stock market speculation, not physical production of goods. Key example: The world's largest EV battery maker, CATL, has a massive market cap, but its billionaire founder (Zeng Yuqun) made his money by supplying physical batteries to automakers, not by financial engineering.

Anyone who tries to create financial alternatives has been penalized. As a result, the direction of private billionaires is decreasing rather than increasing compared to the US-West.

According to the Hurun China Rich List, the combined wealth of China's top 100 billionaires peaked in 2021 at $3.1 trillion and has since declined to ~$2.2 trillion (as of late 2025).  Over the same period, US billionaire wealth (Forbes) has increased from ~$4.5 trillion to over $5.8 trillion.

The CCP has openly stated it will "guide" billionaires to donate more to the state's "Third Distribution" (charity) and to reinvest profits into state-designated strategic sectors. Those who attempt to move capital offshore or create unregulated digital assets (cryptocurrency) have faced asset freezes and legal prosecutions (e.g., the 2024 crackdown on over-the-counter crypto brokers, imprisoning several financiers).

In summary, the CCP actively suppresses 'rentier capitalism' by penalizing financial speculation, canceling speculative IPOs, and forcing private billionaires to anchor their wealth in tangible manufacturing and R&D. Consequently, while US billionaire wealth has surged through stock market financialization, China's billionaire class has seen a net 30% decline in collective wealth since 2021, as the Party rigorously redirects capital toward physical reinvestment and labor-stabilizing SOEs, preventing the emergence of a Western-style, stock-dependent rentier economy.

 3.5- Question of the Dictatorship of the Proletariat

"The dictatorship of the proletariat is the struggle of the proletariat, which has conquered power and taken the means of production into its own hands.". Lenin, “The State and Revolution”

The question of the dictatorship of the Proletariat occupies a central place in Marxist-Leninist theory.  Lenin restored and developed still further the Marxist teaching on the smashing of the old, exploiting apparatus of State power, and explained how this smashing should be carried out in practice. Lenin pointed out that the smashing of the bourgeois state is inconceivable without a series of actions, breaking up the economic power of the landlords and the capitalists,

As Stalin pointed out in the Foundations of Leninism that, the new that Lenin contributed to the teaching on the dictatorship of the proletariat consists in that he (a) pointed to Soviet power as the State form of the dictatorship of the proletariat (b) disclosed in the formula of the dictatorship of the proletariat a special form of the class alliance of the proletariat and the peasantry with the leading role of the proletariat in this alliance; (c) elaborated the question of the dictatorship of the proletariat as the highest form of democracy in a class society, a proletarian democracy that reflects the interests of the majority (of exploited), as opposed to bourgeois democracy which reflects the interests of the minority (of exploiters).

Stalin defended the Leninist teachings on the alliance of the working class with the peasantry and the leading role of the working class in this alliance as the principle of the dictatorship of the proletariat. Stalin pointed out that the main thing in Marxism-Leninism is the question of the dictatorship of the proletariat, and he gave a brilliant definition of its three aspects.

The utilisation of the power of the proletariat;  (1) for the suppression of the exploiters, for the defence of the country, for the consolidation of the ties with the proletarians of the other lands, and for the development and the victory of the revolution in all countries,  (2) in order to detach the toiling and exploited masses once and for all from the bourgeoisie, to consolidate the alliance of the proletariat with these masses, to enlist these masses for the work of Socialist construction, and to ensure the State leadership of these masses by the Proletariat, (3) for the organisation of Socialism, for the abolition of classes, for the transition to a society without classes, to a society without a State….” Stalin, The Foundations of Leninism

Comrade Stalin teaches;

 “only all these three aspects taken together give us a complete and finished concept of the dictatorship of the Proletariat.” (Stalin, Problems of Leninism,

In 1933, when the foundations of a Socialist economy had already been laid, Stalin came out against the enemies of the people who were preaching the ‘abolition’ of the Soviets in the field of all-out collectivisation and against those who sowed confusion by representing the question of the withering away of the State in an oversimplified manner.

“Some comrades interpreted the thesis on the abolition of classes, the establishment of classless society, and the withering away of the State to mean a justification of laziness and complacency, a justification of the counter- revolutionary theory that the class struggle is subsiding and that State power is to be relaxed. Needless to say, such people cannot have anything in common with our Party. They are either degenerates or double-dealers and must be driven out of the Party. The abolition of classes cannot be achieved by the subsiding of the class struggle, but by its intensification. The State will die out not as a result of the relaxation of the State power, but as a result of its utmost consolidation, which is necessary for the purpose of finally crushing the remnants of the dying classes, and of organising defence against the capitalist encirclement which is far from having been done away with as yet and will not soon be done away with.” Stalin, Report on the Work of the Central Committee to the Seventeenth Congress of the C.P.S.U.(B.),

3.6. The Dialectical Conclusion: State Capitalism Under Proletarian Control is Not Imperialism

"The dictatorship of the proletariat is the power of the working class, exercised in alliance with the peasantry." Stalin, various works

The comparison between Lenin's NEP and China's EP reveals a continuous Leninist tradition: “the proletarian state can utilize capitalist methods to strengthen socialism.”

The data on "power capital" and "private capital" proves that China's state dominates capital, not the reverse. This is the inversion of imperialist finance capital. The purpose of China's economic policy- domestic welfare, resource security, and mutual development- proves its anti-imperialist character.

Those who call China "imperialist" do not understand Lenin's definition but confuse: " participation in the global market” with “domination of the global market,  State-regulated private capital” with “imperialist finance capital,  and investment for domestic welfare and mutual benefit” with “investment for super profits and exploitation.

This confusion is not a scientific error; it is the result of ideological warfare. "

4. The Scientific Definition of Imperialism 

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