Introduction to Modern China's Foreign Trade (Second Edition)

Author: Liao Qingxin et al. / Country:
Publisher:
Publishing Date: 2004-12-01
Features: Under the premise of a predominantly public ownership-based socialist primary stage, foreign trade is governed by the fundamental economic law of socialism, aiming to better ensure and promote the smooth progress of socialist reproduction and to better meet the growing material and cultural needs of the entire society. Selling goods in the international market to realize their value and exchange foreign currency is to create the conditions for the realization of the use value of goods. Therefore, fundamentally speaking, foreign trade in the socialist primary stage is primarily for the realization of use value. Its formula is: W (commodity) - G (money) - W (commodity). However, since enterprises in a socialist market economy are self-accountable and profitable, they are also required to seek profits.
(II) The Ownership Structure of Capitalist Foreign Trade
Capitalist foreign trade is mainly based on private ownership by capitalists. It is governed by the fundamental economic law of capitalism, the law of surplus value, with the purpose of maximizing profits. In the international market, it sells goods to transform commodity capital into money capital, realizing the surplus value created by laborers in the production process; it imports raw materials, equipment, and consumer goods from abroad to transform money capital into productive capital, allowing the working class to continue creating surplus value for the bourgeoisie to exploit. Therefore, fundamentally speaking, capitalist foreign trade is entirely for the realization of value. Its formula is: G (money) - W (commodity) - G' (money).
II. From the Perspective of the Relationship of "Mutual Exchange of Activities"
From the perspective of the relationship of "mutual exchange of activities," it means analyzing and examining the essential differences between foreign trade in the socialist primary stage and capitalist foreign trade based on "the position of various different social groups in production and their mutual relationships." A certain form of production ownership determines the internal and external relationships within a specific economic system.
(1) The Economic Relationship of China's Socialist Primary Stage Foreign Trade
Overall, the economic relationship demonstrated by China's socialist primary stage foreign trade is one of mutual assistance and cooperation internally and equality and mutual benefit externally.
(1) Internally, the relationship between enterprises within and outside China's socialist foreign trade is one of mutual assistance and cooperation. This is because the means of production in state-owned enterprises are primarily owned by the state, which represents the interests of the entire people. The workers engaged in foreign trade are laboring for themselves, for the people, for the state, and for society, acting as masters in their foreign trade activities, with their fundamental interests aligned. At the same time, the economic relationships that arise in the purchase and sale activities between socialist state-owned enterprises, such as their relationships with domestic departments or domestic external relationships, are fundamentally consistent because the means of production in these departments are also primarily owned by the state, representing the interests of the entire people. The relationships within and between various business systems in the foreign trade system, such as the central and local governments, ports, ports and inland areas, parent companies and subsidiaries, and departments, are all exchange activities carried out under the socialist market economy. Although the fundamental interests of industries such as industry, agriculture, technology, commerce, and trade groups are still aligned, there are also differences in their respective economic interests and certain contradictions. However, these contradictions can be resolved through mutual consultation, legal regulations, administrative intervention, macro-control, planning guidance, and fair competition.
(2) Externally, China's socialist foreign trade maintains different economic relationships with countries of different types, implementing a national and regional policy of all-around coordinated development under the guidance of the reform and opening-up policy. Regardless of the type of country, the principle of equality and mutual benefit is universally applicable.
(2) The Economic Relationship of Capitalist Foreign Trade
The economic relationship demonstrated by capitalist foreign trade is one of employer and employee, exploitation and being exploited, expansion and plunder.
(1) Internally, the economic relationships that arise in the purchase and sale activities between capitalist foreign trade enterprises are entirely based on money transactions, profit-seeking, and mutual deceit. The relationships within the enterprise are a relationship of employer and employee, exploitation and being exploited.
(2) Externally, the economic trade relationships between capitalist foreign trade countries are entirely a relationship of exploitation and plunder. It implements policies of economic expansion, crisis transfer, product dumping, and market occupation of other countries; it engages in hegemonic and colonial practices of bullying the weak, exploiting the strong, and oppressing the poor.
III. From the Perspective of Distribution Relationships
What is commonly referred to as distribution refers to the allocation of newly created value (i.e., national income) in society over a certain period. Distribution relationships are one aspect of social production relationships. In terms of foreign trade, it belongs to the category of circulation, where, in addition to the labor in transportation, packaging, processing, and storage during the circulation process creating value, the labor in purchasing and selling activities does not create value but only promotes the realization of commodity value. Foreign trade enterprises, like other enterprises, can obtain profits in their operations. However, the distribution relationships between socialist state-owned foreign trade enterprises and capitalist foreign trade enterprises are entirely different.
(1) The Distribution Relationship of Socialist State-Owned Foreign Trade Enterprises
The profits obtained by socialist state-owned foreign trade enterprises are part of national income. Since their means of production are owned by the state, the profits they earn must be remitted to the state. The funds needed by state-owned foreign trade enterprises and the wages paid to employees, regardless of the form, are actually provided by the redistribution of national income. The remuneration received by employees is handled according to the socialist primary stage distribution principle of "prioritizing efficiency while considering fairness," based on the principle of distribution according to labor.
(2) The Distribution Relationship of Capitalist Foreign Trade Enterprises
The profits obtained by capitalist foreign trade enterprises belong entirely to the capitalists and are distributed according to capital. The income earned by the labor of enterprise employees is mostly controlled by capitalists, and their distribution relationship is one of exploitation and being exploited.
V. The Practical Significance of Learning and Studying the Nature of Foreign Trade
The purpose of learning theory is practice. By learning and studying the nature of foreign trade, we aim to distinguish and correctly recognize the dual nature of foreign trade in our thinking; understand and grasp the general of foreign trade as an economic phenomenon, i.e., its general laws; and understand and grasp the essential differences between foreign trade in the socialist primary stage and capitalist foreign trade and their basic laws. This is of great practical significance for us to learn from and introduce advanced foreign experience and scientific research results, reform foreign trade teaching materials and teaching content and methods, and reform foreign trade management systems and management methods.
I. Understanding the Dual Nature of Foreign Trade Can Broaden Our Horizons and Expand Our Thinking in the Context of Opening Up, Reform, and Liberalization
For a long time, due to the influence of "leftist" ideology, the theoretical circles in China have generally considered social sciences, including economic and trade sciences, to be class-based. As a result, they have adopted a negative and exclusionary attitude toward the research findings and advanced experience of non-Marxists in the field of social sciences. The root of this attitude lies in the lack of in-depth and detailed scientific analysis and research on the dual nature of social sciences and economic sciences. As a result, for a long time, the teaching content of foreign trade and the reform of the foreign trade system have inevitably been in a state of rigidity, stagnation, and inaction. The Third Plenary Session of the Party's Eleventh Central Committee proposed the principles of emancipating the mind and seeking truth from facts, as well as policies of opening up to the outside world and liberalizing the domestic economy. It further proposed the theory of China being in the primary stage of socialism, as well as the arguments that the socialist economy is a planned commodity economy and a socialist market economy. This was a major breakthrough in Marxist economic theory and laid the theoretical foundation for China's economic and foreign trade reforms, thereby providing the premise conditions for us to better conduct research on the theory and practice of foreign trade.
It is actually contrary to Marxism to view Marxism as something pure and unchanging. In fact, Marx's doctrine was "directly inherited from the teachings of great philosophers, political economists, and socialists." Marxism is "the natural inheritor of the outstanding achievements of the 19th century, namely German philosophy, British political economy, and French socialism." (Lenin: "On Marx, Engels, and Marxism," pages 64-65) The issue is that when absorbing the research findings of the Western bourgeoisie, we should take the scientific, progressive, and beneficial aspects while discarding the pseudo-scientific, decadent, and harmful aspects. In this way, we can broaden our horizons and expand our thinking, rather than being confined to existing models and content. We can introduce some Western economic management disciplines to enrich our teaching content, as well as advanced foreign management experience and scientific research results, to diversify China's foreign trade management models and methods, making them more flexible, dynamic, and adaptable to the fierce competition of the international market, thereby achieving better and more comprehensive foreign trade economic benefits.