Ethics of the Market System in China: A Key Academic Work on Philosophy and Social Sciences in Jiangsu Province

Author: Tang Shuize
Publisher:
Publishing Date: 2005-01-01
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(1) We are living in an era of great transformation. Twenty-five years of reform and opening-up have brought tremendous and profound changes to China's economy and society. From the Third Plenary Session of the Eleventh Central Committee in 1978, which marked the rectification of chaos and the establishment of a new order, to the Twelfth Plenary Session's decision on economic system reform and the Fourteenth Plenary Session's decision on establishing a socialist market economy system, and finally to the Sixteenth Plenary Session's decision on improving the socialist market economy system in 2003, the four major reform initiatives that have shaped the development of contemporary Chinese society were all made by the "Plenary Sessions." This may be a coincidence. As a result, the history of China's economic system reform over the past 25 years can be divided into three stages: the prelude stage, the comprehensive launch stage, and the stage of confirming and establishing the market system (after the Sixteenth Plenary Session, we entered a stage of deep marketization). In a country with thousands of years of feudal tradition, transitioning from a planned economy to a market economy was not an easy task but rather a difficult journey. Reform is a profound revolution. The more institutional obstacles we overcome, the more theoretical (ethical) constraints we must break through. The more institutional innovations we achieve, the more theoretical (ethical) innovations we must make. Against this backdrop, we have undertaken one project each under the Jiangsu Provincial Humanities and Social Sciences "Nineteen-Ninety-Five" Plan, the Jiangsu Provincial Philosophy and Social Sciences "Nineteen-Ninety-Five" Plan, and the "Nineteen-Ninety-Nine" Plan, ultimately forming the manuscript of our book, "Ethics of China's Market System." During the process of research, exploration, and manuscript formation, we have strived to guide ourselves with Marxist historical materialism, taking the unity of logic and history as the fundamental method. We have grounded our research in the reality of the establishment of China's market system and the construction of morality, combining theory with practice to address the questions raised by real life. Overall, our book provides a relatively comprehensive discussion of the relationship between China's market system and moral progress, moral construction, and moral development. It preliminarily but systematically constructs the ethical framework of China's market system and explores its basic categories and main principles in a relatively thorough manner.
(2) The content of the entire book revolves around the theme of "Ethics of China's Market System," divided into three parts and twelve chapters.
Part I, "Economic System and Ethical Morality," consists of three chapters (Chapters 1–3), serving as the prelude and foundation for "Ethics of China's Market System." It primarily discusses the relationship between the economic system and ethical morality.
Chapter 1, "Economic System Reform and Ethical Moral Dilemmas," briefly introduces the process of China's transition from a planned economy to a confirmed and implemented market economy. It summarizes the ethical conflicts and dilemmas encountered in China's reform process in terms of moral value goals, moral evaluation standards, and moral behavioral choices. It also reviews the representative views formed during this period by the ethical academia and the broader theoretical community—such as the "slippage theory," "climbing theory," and "normlessness theory" regarding the current state of China's moral construction; the "dilemma theory," "cost theory," "negative driving force theory," "conflict theory," and "dual effect theory" regarding the relationship between China's market economy and moral construction; and the "external infusion theory," "internal introduction theory," "boundary theory," and the theory of "adaptation and transcendence" regarding how morality should be built under China's market economy conditions.
Chapter 2, "Market Economy System and Market Economy Ethics," uses the method of "affirmation" to examine and define the basic concepts of economy, ethics, and morality. It points out that morality and the economy are synchronous, isomorphic, and mutually constitutive. It argues that every economic system must have ethical implications, and morality is a reflection of economic relations. The economic system requires morality to provide ethical justification and support for its ethical and order. The moral nature of China's market economy system lies in its ability to improve economic efficiency, gradually achieve common prosperity, and promote human liberation and all-round development. Market system ethics regulates the morality of market entities, and the morality of market entities carries the ethics of the market system.
Chapter 3, "Critiquing the Myths of the Relationship Between Market Economy and Morality," uses the method of "rebuttal" to analyze and refute once-popular but flawed views. These include: market activities are unrelated to ethical morality and should be strictly separated; the market economy, regulated by the "invisible hand," will naturally achieve the best social interests without the need for moral regulation; business operations are like playing poker, requiring distrust, unkindness, lack of candor, and even lying; the purpose of business operations is profit maximization, and moral principles hinder profits, so market entities cannot (or should not) practice morality; corruption phenomena such as the exchange of power for money arise because the law of value and the principle of equal exchange have infiltrated and permeated people's spiritual realms and moral concepts (comparing the exchange of power for money with the principle of equal exchange on an equal footing); the "smallest-largest principle" in the market economy has a somewhat selfish moral color (equating profit-seeking in market activities with selfishness); competition has led to the expansion of private consciousness; and the principle of equal exchange is achieved through a series of explicit and implicit negotiations between supply and demand, which fosters utilitarianism and egoism in interpersonal interactions, etc. Based on analyzing and clarifying these views as misunderstandings of China's market system ethics, the book also summarizes three insights in terms of ideological methodology: first, one cannot simply attribute the problems in societies that implement the market economy system to the system itself but must analyze specific problems in a practical and concrete manner, explore inevitable connections, and grasp the essence of things; second, one cannot simply view the problems that arise during the transition to the market economy system as flaws of the system but must adopt a comprehensive, historical, and developmental perspective to view new things and actively promote the establishment and improvement of the socialist market economy system; third, one cannot simply use the ethical principles of the traditional planned economy system as the standard to evaluate moral issues under China's market economy conditions but must adopt the stance of historical materialism, using "three" and "three representatives" as the judgment criteria.
Part II, "The Ethical Framework of China's Market System," consists of six chapters (Chapters 4–9), serving as the core and expansion of "Ethics of China's Market System." It focuses on exploring the ethical construction of China's market economy system and its basic categories and main principles.
Chapter 4, "The Ethical Construction of China's Market Economy System," has a general nature within Part II. This chapter points out that the construction of China's market system ethics must adhere to the following guiding principles: adapt to the socialist market economy, coordinate with socialist legal norms, and inherit Chinese traditional virtues. The construction of China's market system ethics can be composed of two basic categories and several main principles. The two basic categories are equal exchange and achieving common prosperity in the end. Because equal exchange and achieving common prosperity in the end are the fundamental attributes of China's market economy system, they serve as the core ethical categories in the ethical system of China's market economy system, playing a unifying role in other ethical principles. The main principles of China's market system ethics can be examined separately from the four stages of social reproduction, thus summarizing the main principles of production ethics as autonomy and independence, pioneering innovation, and ecological protection; the main principles of exchange ethics as equality and mutual benefit, fairness and justice, and integrity and compliance; the main principles of distribution ethics as labor distribution as the main body, combining labor distribution with the distribution based on production factors, emphasizing both efficiency and fairness; and the main principles of consumption ethics as prioritizing development, moderate consumption, and poverty alleviation and assistance.
Chapter 5, "Equal Exchange," and Chapter 6, "Achieving Common Prosperity in the End," discuss the two basic categories of China's market system ethics. Equal exchange is originally the overall and universal principle of commodity exchange, and at the same time, this principle has the inherent necessity to become an ethical principle. The essence of equal exchange as an ethical category is that market entities, in their exchanges and interactions with others, should strive for equality, justice, mutual assistance, and reciprocity, ensuring that income and effort are consistent, truly reflecting the mutual exchange between equal amounts of labor. This ethical implication originates from the natural nature of commodities: commodities are products that enter and realize exchange through negotiation (consultation), not through directives, deception, or coercion. Confirming equal exchange as a basic category of China's economic system ethics is a moral truth and an ethical progress, helping to curb unethical behaviors such as counterfeit and shoddy products and the exchange of power for money. It does not mean advancing toward capitalist ethics centered on individualism but, on the contrary, holds significant positive meaning for the construction of China's material civilization, political civilization, and spiritual civilization. Achieving common prosperity in the end is the fundamental principle, essential characteristic, and ultimate social value goal of socialism, and it must also be the basic ethical principle for adjusting material interests among people in the primary stage of socialism. As an ethical category, the basic content and requirements of achieving common prosperity in the end are: wealth creation is glorious, poverty is not socialism; achieving common prosperity does not mean polarization; and achieving common prosperity through the wealthy leading the less wealthy gradually is not simultaneous prosperity.
Chapter 7, "Competition," Chapter 8, "Combining Labor Distribution with Distribution Based on Production Factors," and Chapter 9, "The Unity of Efficiency and Fairness," discuss several major and prominent issues in China's market system ethics. The most important views include: competition has the moral value of promoting productivity development, giving society vitality, and promoting the perfection of subjects. Competition and cooperation are both contradictory and unified, and intense competition and high cooperation are twin brothers produced by large-scale social production in modern society. Participating in competition and cooperation correctly must adhere to corresponding principles. Labor distribution as the main body, combined with labor distribution and distribution based on production factors, is determined by the ownership structure of the public sector as the main body and multiple economic components developing together in the current stage of China, and it is also necessary for implementing the socialist market economy system. As the main principle of distribution ethics, it is conducive to advocating hard work and wealth creation in the whole society, maximizing the enthusiasm of all social members, fully utilizing limited resources, and thus promoting the progress of science and technology and the development of social productivity. Efficiency and fairness are dialectical and unified, and their unity is the inherent requirement of the essence of socialism and also the inherent requirement of China's market economy system. It is necessary to establish a correct socialist concept of fairness and adhere to the unity of emphasizing efficiency and maintaining fairness. Socialist fairness should refer to the equal effectiveness of laws and policies for every citizen in a given society, representing the rationality of interpersonal relationships based on economic interests, both opportunity fairness and outcome fairness. It is incorrect to equate fairness with equality, as they are both connected and distinct. Equality refers to the equivalence of the actual status, power, and wealth obtained by people, and the ultimate objective standard of fairness is efficiency, that is, "three."
Part III, "Market Ethics and Moral Construction," consists of three chapters (Chapters 10–12), serving as the extension and expansion of "Ethics of China's Market System." It primarily discusses the integration, realization, and development of morality.
Chapter 10, "The Integration of Morality: The Interconnection of Economic Ethics and Other Ethical Fields," discusses the interconnectedness and consistency between economic ethics and other ethical fields and general social ethics. Although economic ethics and other ethical fields are different moral requirements for people's behavior in different fields, they are mutually influential, interactive, and permeable, and their ethical implications and spirit should also be consistent. In a moral system, economic ethics always occupies a foundational and central position. It is the mediator between the transition of socioeconomic relations to general social ethics. It is inconceivable that in a complete moral system, the economic sector imposes one kind of moral requirement on people, while other sectors or in a general sense impose another kind of requirement, even one that contradicts the former.
Chapter 11, "The Realization of Morality: The Combination of Advancement and Broadness," reveals the meaning, basis, and mutual relationship between the demands for moral broadness and moral advancement. It argues that, from a qualitative perspective, the demand for moral broadness should refer to requirements that are feasible for the general public and long-term feasible, while the demand for moral advancement should refer to requirements that are feasible for a few advanced individuals and for a certain period. These two demands are not contradictory but mutually dependent, complementary, intersecting, and permeable. Adhering to their combination requires: first, recognizing the rationality, legitimacy, and justice of broadness demands, and overcoming and preventing the negative impact of certain moral criteria formed under the traditional planned economy system; second, actively encouraging and advocating advancement demands, and overcoming and preventing the misconception that socialist market economy conditions cannot promote selfless and wholeheartedly serving the people's cause in communist ethics; third, firmly opposing individualism and overcoming and preventing the wrong notion that individualism is an inevitable product of the market economy. This chapter further elaborates on the relationship between social moral demands and the generation of subjective morality, proposing that the formation of subjective moral character requires strengthening learning, enhancing moral wisdom, frequent self-reflection, strengthening moral belief, emphasizing practice, upholding moral behavior, and striving to achieve the integration of moral knowledge, moral integrity, and moral conduct.
Chapter 12, "The Development of Morality: The Unity of Adaptation and Transcendence," emphasizes that not only economic ethics must adapt to the socialist market economy but also other ethical fields and general social ethics must adapt to it; not only must other ethical fields and general social ethics transcend the market economy, but economic ethics must also contain factors that transcend the market economy. "Adaptive" morality and "transcendent" morality are two inseparable aspects of a moral system and cannot be absolutely opposed. The implications of economic ethics and other ethical fields, as well as general social ethics, are interconnected and cannot be disconnected. In short, "adaptation" and "transcendence" should be comprehensive and dialectical.
The appendices include three papers: "The Basic Positioning of Morality: A Quality of a Practical Subject," "On the Essential Attributes of Morality," and "A New Definition of Morality." These are articles we published in newspapers and journals in recent years. This group of papers reflects on and clarifies what morality is and what it represents, serving as the premise and foundation for exploring market system ethics using the concept of "morality." Although they do not directly discuss "Ethics of China's Market System," they are closely and deeply related to it, hence included at the end. Additionally, the book appends a directory of papers (monographs) published (published) by the author since 1995 that are related to "Ethics of China's Market System" for reference.
(3) It should be said that the topic of our book is not an easy one. It requires exploratory research on major, challenging, and cutting-edge theoretical and practical issues encountered in China's reform and modernization. Moreover, given our limited academic capabilities, it is inevitable that we may have made mistakes, overlooked aspects, or been incomplete. Especially as China's reform with the market system as its goal is deepening, the Sixteenth Plenary Session's decision on improving the socialist market economy system has proposed many important new viewpoints and policies, providing new issues and perspectives for the study of the ethics of China's market system. Even for ourselves, our research may not be entirely satisfactory, and there will be no final conclusion. For example, regarding the fundamental and prerequisite issue of forming market entities—property rights—the book has basically not addressed it. Also, the "people-centered, comprehensive, coordinated, and sustainable development concept" and the principle of "five coordinations" were proposed in response to the deepening practice of China's economic system reform and socialist modernization. Their basic spirit should and can be absorbed into the ethics of China's market system. Such issues can only be left for future research and improvement.
In our research, we have cited some viewpoints and discussions published by our academic peers. Whether we affirm or critique these citations, we hold a deep respect for the original authors. It is precisely these different viewpoints and even the "" of opposing views that have allowed our exploration to continue to deepen. If our book can, to some extent, provide ethical justification and motivational support for the establishment and improvement of China's market system, thereby helping people eliminate misunderstandings, doubts, and confusion, and strengthen their belief in reform and opening-up and the path of socialism with Chinese characteristics; if it can provide ethical guidance and ethical constraints for the regulation and improvement of China's market order, thereby promoting the healthy and coordinated development of the economy; and if it can provide a foundation for the overall moral construction and spiritual civilization construction in a very important aspect, thereby promoting the ideological and moral construction of the whole society and the construction of socialist spiritual civilization, then our original intention will have been achieved, and we will feel gratified. We will be grateful to our readers.
Author: Tang Shuize
Early Spring 2004 in Nanjing
The message conveyed in this book is an exploration of the unification of morality and economy, an ethical justification for China's transition to a socialist market economy system, and constructive reflections on the development of ethics and morality under China's socialist market economy system. The author focuses on the unity of ethics and economy, as well as the individual and society, hoping to achieve a coordinated development of ethics and economy, the individual and society. Today, adhering to a people-centered, comprehensive, coordinated, and sustainable development has become the overarching requirement for China's economic and social development. Therefore, the issues discussed in this book are a timely and meaningful topic of contemporary China.