The new Cold War against China, Part 1

The sanctions are part of the U.S. campaign to stifle China’s development of the latest version of data-transmission technology known as 5G.

During the Cold War and the struggle that put the USSR and China on one side and imperialism headed by Washington on the other side, revolutionaries used to characterize the conflict as a class war between two irreconcilable social systems. 

There was the socialist camp, based upon socialized property, economic planning for human need and the government monopoly of foreign trade on the USSR-China side, and capitalism, a system of production for profit, on the other. 

That the two systems were irreconcilable was at the bottom of the conflict dubbed the Cold War. In light of the current sharpening economic, diplomatic, political and military conflict between U.S. imperialism and the People’s Republic of China (PRC), it is time to revive the concepts that were applied during the height of the Cold War.

Of course it is necessary to make modifications in these formulations with respect to socialism in China, with its mix of controlled capitalism and guided socialism.  

Nevertheless, the conflict between imperialist capitalism, headed by Washington, Wall Street and the Pentagon, and the Chinese socialist economic system, which has state-owned industry at its core and planned economic guidance, is becoming much sharper, and imperialism is growing more openly hostile. 

U.S. imperialism’s long-standing effort to overthrow socialism in China, Chinese capitalism notwithstanding, has been concealed beneath sugary bourgeois phrases about so-called “common interests” and “economic collaboration.”  But this kind of talk is coming to an end.

Washington’s first campaign to overthrow China — 1949-1975

This struggle has been ongoing since 1949, when the Chinese Red Army drove U.S. puppet Chiang Kai-shek and his nationalist army from the mainland as it retreated to Taiwan under the protection of the Pentagon. 

The conflict continued through the Korean War, when Gen. Douglas MacArthur and the U.S. high command drove the U.S. troops to the Chinese border and threatened atomic war. Only the defeat of the U.S. military by the heroic Korean people under the leadership of Kim Il Sung, with the aid of the Chinese Red Army, stopped the U.S. invasion of China.

The struggle further continued with the U.S. war against Vietnam. The war’s strategic goal was to overthrow the socialist government of Vietnam in the north and drive to the border of China to complete the military encirclement of the PRC. Only the world-historic efforts of the Vietnamese people under the leadership of Ho Chi Minh stopped the Pentagon in its tracks.

The Pentagon’s plans for military conquest failed 

With the rise of Deng Xiaoping and the opening up of China to foreign investment beginning in December 1978, Wall Street began to reevaluate its strategy. The U.S. ruling class began to take advantage of the opening up of China to foreign investment and the permission for private capitalism to function, which could both enrich U.S. corporations in the massive Chinese market and at the same time penetrate the Chinese economy with a long-range view to overturning socialism. 

U.S. multinational corporations set up operations in China, hiring millions of low-wage Chinese workers, who flocked to the coastal cities from the rural areas. These operations were part of a broader effort by the U.S. capitalists to set up low-wage global supply chains that integrated the Chinese economy into the world capitalist market. The U.S.’s recent sharp turn aimed at breaking up this economic integration with the Chinese economy, including the witch hunt against Chinese scientists and the U.S. Navy’s aggressive behavior in the South China Sea (called the Eastern Sea by Vietnam), is an admission that the economic phase of the U.S. attempt to bring counterrevolution to China has failed. 

China is now a growing counterweight to Washington in international economics, high technology, diplomacy and regional military might in the Pacific, which the Pentagon has always considered to be a “U.S. lake” ruled by the Seventh Fleet.

The attack on Huawei

A dramatic illustration of the developing antagonisms is the way the U.S. had Meng Wanzhou, the deputy chairwoman and chief financial officer of Huawei, arrested in Canada for supposed violations of U.S. sanctions against Iran — an outrageous example of imperialism exercising extraterritoriality. The Trump administration has also leveled sanctions against Huawei electronics, the world’s largest supplier of  high-tech operating systems in the world. Huawei employs 180,000 workers and is the second largest cell phone manufacturer in the world after the south Korean-based Samsung. 

The sanctions are part of the U.S. campaign to stifle China’s development of the latest version of data-transmission technology known as Fifth Generation or 5G. 

The Trump administration has barred U.S. companies from selling supplies to Huawei, which has been using Google’s Android operating system for its equipment and Microsoft for its laptop products — both U.S.-based companies. Huawei is contesting the U.S. ban in court. 

Meanwhile, as a backup plan in case Washington bans all access to Android and Microsoft, Huawei has quietly spent years building up an operating system of its own. Huawei developed its alternative operating system after a 2012 finding by Washington that Huawei and ZTE, another Chinese giant cell phone maker, were in criminal violation of U.S.“national security.” ZTE was forced to shut down for four months. (South China Morning Post, March 24, 2019)

But the conflict is about more than just Huawei and ZTE.

The new ‘red scare’ in Washington

The New York Times of July 20, 2019, carried a front page article entitled, “The New Red Scare in Washington.” A few excerpts give the flavor: 

“In a ballroom across from the Capitol building, an unlikely group of military hawks, populist crusaders, Chinese Muslim freedom fighters and followers of the Falun Gong has been meeting to warn anyone who will listen that China poses an existential threat to the United States that will not end until the Communist Party is overthrown.

“If the warnings sound straight out of the Cold War, they are. The Committee on the Present Danger, a long-defunct group that campaigned against the dangers of the Soviet Union in the 1970s and 1980s, has recently been revived with the help of Stephen K. Bannon, the president’s former chief strategist, to warn against the dangers of China.

“Once dismissed as xenophobes and fringe elements, the group’s members are finding their views increasingly embraced in President Trump’s Washington, where skepticism and mistrust of China have taken hold. Fear of China has spread across the government, from the White House to Congress to federal agencies.” 

The Trump administration has opened up a tariff war against the PRC, imposing a 25-percent tariff on $250 billion worth of Chinese exports and threatening tariffs on another $300 billion. But there is much more to Washington’s campaign than just tariffs.

The FBI and officials from the NSC (National Security Council) have been conducting a witch hunt, continues the Times article, “particularly at universities and research institutions. Officials from the FBI and the National Security Council have been dispatched to Ivy League universities to warn administrators to be vigilant against Chinese students.” 

And according to the Times there are concerns that this witch hunt “is stoking a new red scare, fueling discrimination against students, scientists and companies with ties to China and risking the collapse of a fraught but deeply enmeshed trade relationship between the world’s two largest economies.” (New York Times, July 20, 2019)

FBI criminalizes cancer research

According to a major article in the June 13, 2019, Bloomberg News, “Ways of working that have long been encouraged by the NIH [National Institutes of Health] and many research institutions, particularly MD Anderson [a major cancer treatment center and research institute in Houston], are now quasi-criminalized, with FBI agents reading private emails, stopping Chinese scientists at airports, and visiting people’s homes to ask about their loyalty.

“Xifeng Wu, who has been investigated by the FBI, joined MD Anderson while in graduate school and gained renown for creating several so-called study cohorts with data amassed from hundreds of thousands of patients in Asia and the U.S. The cohorts, which combine patient histories with personal biomarkers such as DNA characteristics and treatment descriptions, outcomes, and even lifestyle habits, are a gold mine for researchers.

“She was branded an oncological double agent.” 

The underlying accusation against Chinese scientists in the U.S. is that their research can lead to patentable medicines or cures, which in turn can be sold at enormous profits.

The Bloomberg article continues, “In recent decades, cancer research has become increasingly globalized, with scientists around the world pooling data and ideas to jointly study a disease that kills almost 10 million people a year. International collaborations are an intrinsic part of the U.S. National Cancer Institute’s Moonshot program, the government’s $1 billion blitz to double the pace of treatment discoveries by 2022. One of the program’s tag lines is: ‘Cancer knows no borders.’

“Except, it turns out, the borders around China. In January, Wu, an award-winning epidemiologist and naturalized American citizen, quietly stepped down as director of the Center for Public Health and Translational Genomics at the University of Texas MD Anderson Cancer Center after a three-month investigation into her professional ties in China. Wu’s resignation, and the departures in recent months of three other top Chinese-American scientists from Houston-based MD Anderson, stem from a Trump administration drive to counter Chinese influence at U.S. research institutions. … The collateral effect, however, is to stymie basic science, the foundational research that underlies new medical treatments. Everything is commodified in the economic cold war with China, including the struggle to find a cure for cancer.” 

Big surprise. A world famous Chinese epidemiologist, trying to find a cure for cancer, collaborates with scientists in China! 

Looking for the ‘reformers’ and the counterrevolution

For decades, the Chinese Communist Party has had changes of leadership every five years. These changes have been stable and managed peacefully. With each changeover, so-called “China experts” in the State Department in Washington think-tanks and U.S. universities have predicted the coming to power of a new “reformist” wing that will deepen capitalist reforms and lay the basis for an eventual full-scale capitalist counterrevolution. 

To be sure, there has been a steady erosion of China’s socialist institutions. The “iron rice bowl” which guaranteed a living to Chinese workers has been eliminated in private enterprises. Numerous state factories and enterprises have been sold off to the detriment of the workers, and in the rural areas land was decollectivized.

One of the biggest setbacks for socialism in China and one which truly gladdened the hearts of the prophets of counterrevolution, was the decision by the Jiang Jemin CCP leadership to allow capitalists into the Chinese Communist Party in 2001.

As the New York Times wrote at the time, “This decision raises the possibility of Communists co-opting capitalists — or of capitalists co-opting the party.” (New York Times, Aug. 13, 2001) It was the latter part that the capitalist class has been looking forward to and striving for with fervent anticipation for almost four decades.

But on balance, this capitalist takeover has not materialized. Chinese socialism, despite the capitalist inroads into the economy, has proved far more durable than Washington ever imagined. 

And, under the Xi Jinping leadership, the counterrevolution seems to be getting further and further away. It is not that Xi Jinping has become a revolutionary internationalist and a champion of proletarian control. But it has become apparent that China’s status in the world is completely connected to its social and economic planning. 

Posted to lowwagecapitalism.com on July 26, 2019.