[New Tang Dynasty News, June 27, 2021, Beijing time]The four departments including the General Supply and Marketing Cooperative of the Communist Party of China jointly issued guidance recently, clarifying that from July, a two-year pilot program for “supply and marketing cooperatives” will be launched. In this regard, some experts said that those in power in the Chinese Communist Party want to resurrect the supply and marketing cooperatives, the last remnants of the planned economy. This is putting the cart before the horse and dying faster.
The Central Broadcasting Corporation of the Communist Party of China reported on June 24 that it was learned from the Supply and Marketing Cooperative that the four departments of the Supply and Marketing Cooperative, the Central Agricultural Office, the Central Bank, and the China Banking and Insurance Regulatory Commission jointly issued the “On the Trinity of Production, Supply and Marketing, and Credit” at the beginning of this month. Guiding Opinions on Comprehensive Cooperation Pilots.
The “Opinions” made it clear that starting from July, several provinces and cities will be selected in Northeast, North China, East China, South Central, Northwest, and Southwest to carry out the pilot economic model of “production, supply and marketing, credit, and’three in one'”, which is expected to be completed within 2 years. the goal.
The “Opinions” were quietly distributed to supply and marketing cooperatives in various regions in the form of red-head documents in mid-June, and the notice required them to implement and advance in accordance with the “Opinions.”
The incident aroused public attention. Xia Yeliang, former associate professor of the School of Economics at Peking University, analyzed the “Voice of Hope” and said that the so-called “Opinions” are actually orders. The authorities not only control production, control supply and marketing, but also control credit. Xi Jinping is bent on returning to the era of Mao Zedong’s dictatorship, which runs counter to world civilization and puts the cart before the horse.
Xia Yeliang said that Mao Zedong’s unpopular set of things, so there is no way to develop economically, and the national economy is on the verge of collapse. That is to say, even in the Republic of China, during the war and during the Japanese aggression, the Chinese economy was not so bad. The Mao Zedong era can be said to be the worst era of the Chinese economy in the 20th century.
Xia believes that China relies on marketization similar to capitalism to make its economy grow, but Xi Jinping is not at ease. For example, he is not at ease with the existing banking system, hoping to reduce competition, and restore to the Mao era. There is only one country in the country. The two banks also hope to return to the planned economy in material terms, which will be completely controlled by the central and local governments at all levels.
Xia said that in the era of supply and marketing cooperatives, China’s rural areas bought seeds to grow grain, fertilizers, and daily necessities. Everything was controlled by the supply and marketing cooperatives. It means that he does not give you any autonomy for individuals or companies in economic activities, but he wants to control you completely. He may want to resume the “food stamps” and also want to set up this food station. So this is a terrible prospect.
“Food stamps” are the grain control system implemented by the CCP in 1955 under the planned economic system when food production was insufficient. At that time, if people needed to buy food, in addition to paying cash, they had to show the “grain purchase certificate” to buy it. Money may not necessarily be bought, resulting in chaos such as insufficient resources, uneven distribution, widening gap between rich and poor, and bribery for food coupons.
At the time when China was experiencing a food crisis, the CCP gave a large amount of food aid to Vietnam, North Korea, Cambodia, Albania, and the Soviet Union. In the late 1950s and early 1960s, during the three years of good weather, at least 45 million people died of starvation in China during the Great Famine, and cannibalism occurred in many provinces.
Xia Yeliang said that after the reform and opening up, the people have finally tasted the sweetness of the capitalist market economy. Now the CCP wants to drag the Chinese back to the Mao era. Xi Jinping does not understand economics. He is surrounded by people who tell lies and flattery. One day he loses power, these people will undoubtedly step on him like he stepped on others.
Xia believes that if Xi Jinping is in absolute control of power after the 20th National Congress of the Communist Party of China, he may be fully restored to the Mao era, and he himself is equivalent to a modern emperor. The restoration of the supply and marketing cooperatives is the beginning of a full recovery to the Mao era. This trend has become more and more obvious, and the result is predictable. The CCP will die faster.
“Supply and Marketing Cooperatives” are a product of China’s planned economy period and a symbol of lack of materials. After the establishment of the Communist Party of China in 1949, the planned economy was implemented, and the planned economy caused China to fall into trouble.
In 1979, the CCP first put forward the argument that planned economy and market economy are not contradictory. In 1993, the CCP set out the basic framework of the “socialist market economy” system. So far, the planned economy implemented in the Mao era has become history.
In 2012, the supply and marketing cooperative was again officially mentioned. After the outbreak of the Sino-US trade war in 2018, the supply and marketing cooperative system was put on the agenda. In October 2019, the General Supply and Marketing Cooperatives published a “Regulations on Supply and Marketing Cooperatives (Draft for Solicitation of Comments)” to the public, which caused a backlash in public opinion and was accused of “the zombie resurrection of the planned economy.”
Now the CCP officially promotes the pilot work. There is a view that the CCP is facing a crisis of possible disconnection from the outside world. This is to prepare for the possible seclusion and shortage of materials in the future.
Feng Chongyi, an expert on China issues at the University of Technology Sydney, believes that the CCP has no way to go. “It’s now recreating the supply and marketing cooperative as if it has buried a zombie, which has been buried for decades, and dug it out to save the economy. One of the methods. Because there are no tricks, I think about these crooked tricks.”
However, Xia Yeliang reminded people that people should not panic too much, because even though Xi Jinping really wants to fully return to the Mao Zedong era, even though Xi Jinping really wants to fully return to the Mao Zedong era, he will not be able to return in many ways.
(Reporter Li Yun comprehensive report/responsible editor: Fan Ming)
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