Capital is a fundamental component of economic development regardless the political-economic system that employs it. What renders Capitalism deadly is the lack of regulation and not dedicating its purposes for the good of the general public, which could easily be done via corporate charters and business law.
A few articles ago, I informed readers of an English language Chinese publication called The China Academy that provides another source for Chinese views on critical geopolitical and geoeconomic issues. The most major distinction between China’s system and the West’s was its relegation of finance to the public realm at the outset of the New China’s existence in 1949—perhaps the most important aspect of Communism/Socialism the privatized West can’t stand and will wage war to overturn as we’ve seen with USSR/Russia/Cuba and a smattering of others. Financial control as I noted in my last article is the primary pillar of the Class War between Creditors and Debtors that’s been ongoing for 4,000+ years. One of the reasons the Kuomintang was so poor at governance was its very deep level of corruption—easily as deep as the Trump Gang’s—and is the primary reason for its being overthrown. The Chinese are outstanding students, and they’ve studied the West and the Outlaw US Empire for decades to see what China might use and what China must avoid. China decided it must avoid the accumulation of great wealth by individuals for political usage. The Jack Ma example is the best available. China’s been extremely protective of its financial system because they knew it was weaker than the West and that the West has tools at the ready to undermine and capture it setting the clock back to 1900. In 2024, Xi Jinping gave a landmark speech at a closed venue about making China into a financial powerhouse and outlined the steps to take. That speech was kept classified until February 2026 when it was published and I reported it in-full. What many didn’t know was that China had already been working hard for two years and had already instituted some of the required steps. China learned that its industrial success would attract Capital wanting to benefit from that success, and so it has. Several articles I’ve read speak about the entry of Big Capital into the development funding mixture augmenting what the CPC funds via the budget. IMO, it’s very possible that Hong Kong and Shanghai displace New York and London as the planet’s main financial centers—yet another reason why China’s being targeted by economic war. Now that the table’s set, let’s read what Dr. Yu Bin has to say about the issue:
....As we discovered, the article’s title is misleading since China has stock and bond markets. The main difference is Capital and its influence is heavily regulated and not allowed to go beyond the set boundaries. Capitalists are to remain capitalists and not meddle in China’s political affairs. We do see human failure often enough where some official is caught taking bribes, an offense that can merit the death penalty that proves China’s seriousness on the matter. One possible reasoning is political involvement takes business away from concentrating on what it’s supposed to be doing—innovating, modernizing, opening new markets, etc. China has a massive very well educated political class that’s proven itself very adept at governance, although like all humans it errs occasionally. There’re several instances in US history where to promote the public welfare the federal government needed to intervene in markets, energy production and electrification most prominently during the Great Depression. There’s also what was known as the American System promoted by Federalist then Whig politicians that called for government investment in fundamental infrastructure projects like roads, bridges and canals. (It’s a shame railroads weren’t included at their outset.) The Anti-Communist Crusade was all about the preservation of private ownership versus public ownership of Capital and related assets. It’s easy to see the very strong anti-public bias of the wealthy who fueled the Crusade and its propaganda. And with deregulation government was captured by Neoliberal Dogma where the public domain is seen as something to devour to the point where nothing much is owned by the general public—even your house and car are owned by the bank that provided the credit for that purchase. The Empire currently has 25%+ of its people living with their parents because they can’t afford housing. And those people have no incentive to procreate. In his Killing the Host: How Financial Parasites and Debt Bondage Destroy the Global Economy, published in 2015, Dr, Hudson described where Neoliberalism and adherence to its dogma would lead, and we’re living it now. The nations that rejected the West’s prescription have prospered, which is fundamentally why they’re targeted by economic and/or kinetic warfare. China avoided that by adopting what seem to be rather simple ideas related to the common good that provide the foundation for avoiding societal unrest and raising almost a billion out of poverty. It’s easy to see why the West doesn’t want the Global Majority to emulate the Chinese model of development.
The test for China is to keep private capital closely regulated. Chinese history is filled with tales of landlords exploiting the peasantry while corrupting the local government charged with disciplining them, while more recent examples during Chaing Kai-shek’s rule and what transpired on Taiwan during the dictatorship there remain living memories for many. I’m sure some readers were surprised at China’s view of personal freedom versus corporate designs and the asking of fundamental questions regarding that relationship that certainly aren’t being asked in the West to the same degree. The question being asked by a growing number of people is will we have Socialism or Barbarism and how do we get to the former from the latter......
