China’s State Capitalism Export Economy fueled by Cheap Labor, Oppression, Kidnapping, Torture and Asset Seizing

Posted by PITHOCRATES - March 10th, 2012

Week in Review

For those on the left that think China’s state capitalism (aka, crony capitalism, socialism, thugocracy, etc.)  is the way to go should live under their state capitalism for awhile.  To get a fist hand account of just how wonderful it is.  Because, frankly, it’s not that wonderful.  At least for those who live under it (see China: toils of communist boss give insight into workings of the party by Tania Branigan posted 3/9/2012 on The Guardian).

The political drama surrounding an ambitious Chinese Communist party leader, his former ally a “robocop” police chief who apparently tried to defect to the west, a missing businessman, and another who claims to have been tortured, has uncovered bitter tensions in the Communist party as a new generation of leaders prepares to take power…

Meanwhile, a Chongqing businessman appears to have vanished in Beijing shortly after publishing a microblog message saying “the jigsaw puzzle around Wang Lijun” would soon become clear. Zhang Mingyu had claimed to have a recording of Wang warning him to stop accusing another businessman of corruption. Zang’s lawyer, Pu Zhiqiang, said Zhang had been visited by police and other officials who wanted him to return to Chongqing, and was now out of contact. Questioning their jurisdiction, Pu added: “Chongqing police came to Beijing to take him. This is more like a kidnapping.” Chongqing police said they had no information on Zhang.

Earlier this week fugitive Chinese businessman Li Jun described Bo’s anti-crime campaign as a “red terror”. He alleged in interviews with the Financial Times and Washington Post that Chongqing security officials had tortured him and seized his assets. Chongqing officials declined to comment…

Bo also indicated inequality in China had hit a high level, saying the gini coefficient – the most commonly used measure of inequality – had exceeded 0.46, a similar level to the United States and well past the 0.4 figure often seen as an indicator of growing social tension. China’s statistics bureau has said it cannot produce a single national figure because of problems with the survey method. Bo said reducing the wealth gap was a major task for Chongqing, adding: “If only a few people are rich then we’ll slide into capitalism. We’ve failed.”

It is precisely because they don’t have capitalism that there are only a few rich people.  And why they have cheap labor for their export economy.  Because the only rich people are the ruling elite.  The people connected to the ruling elite.  And those connected to the ‘businesses’ that are connected to the ruling elite.  Sure, they fear capitalism.  And don’t want to slip into capitalism.  For a national export economy driven by cheap labor needs the power of the state to keep that labor cheap.  And tools like kidnap, torture and seizing the assets of anyone they deem an enemy of the state are most invaluable in subduing a people.  And keeping their wages cheap.  That’s the big fear of slipping into capitalism.  For if they did they wouldn’t be able to oppress their people anymore.

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