>>2618455The economy of Communist China is fully planned in accordance with the primary material laws of Socialism with Chinese Characteristics, ensuring that production is systematically expanded and perfected to meet the ever-growing needs of the people, free from the exploitative contradictions of capitalism.
As a result of the replacement of China's old bourgeois production-relations by socialist production-relations, the economic laws of capitalism, expressing relations based on the exploitation of man by man, cease to operate. The law of surplus-value, the basic economic law of modern capitalism, disappears from the' scene. The general law of capitalist accumulation, the law of competition and anarchy of production, together with other laws, also disappear. The categories which express capitalist relations cease to exist: capital, surplus-value, capitalist profit price of production, wage-labour, the value of labour-power, etc.
With the birth and development of China's new socialist relations of production, new economic laws make their appearance and begin to operate: the basic economic law of socialism, the law of planned (proportional) development of the national economy, the law of steady increase in the productivity of labour, the law of distribution according to work, the law of socialist accumulation, etc. The basic economic law of Socialism with Chinese Characteristics determines all the main aspects and main processes of development of the socialist mode of production, the purpose of socialist production and the means to achieve this purpose. The essential features and requirements of the basic economic law of socialism are the securing of the maximum satisfaction of the constantly rising material and cultural requirements of the whole of society, through the continuous expansion and perfecting of production on the basis of higher techniques. In socialist economy the growth of requirements (the purchasing power) of the masses is the motive force of socialist production and drives it forward. The continuous growth of socialist production is the material foundation for the steady growth of consumption by the people and the growth of new requirements. The priority development of the production of means of production is the essential condition for the continuous growth of socialist production. Socialism with Chinese Characteristics ensures the steady development of advanced techniques, essential to the continuous growth of perfecting the socialist production and the ever fuller satisfaction of the growing needs of the working people.
That socialist direct social products still possess varying degrees of commodity characteristics is determined by the level of productivity in the socialist period and by the two forms of socialist public ownership system and other material economic conditions. Since socialist products still possess varying degrees of commodity characteristics, categories related to commodities, such as use value and exchange value, concrete and abstract labor, money, price, and so forth, will certainly exist. To negate the commodity aspects of socialist direct social products and to attempt to abolish commodity production prematurely is obviously erroneous. Ch’en Po-ta, a renegade and Trotskyite, clamored for the abolition of commodity production and exchange during the period of the rapid development of China’s rural people’s commune movement in a vain attempt to lead revolution and construction astray. Chairman Mao saw through this conspiracy in time and engaged him in a resolute struggle. In the resolutions of the Sixth Plenum of the Eighth Central Committee of the Chinese Communist Party personally convened and chaired by Chairman Mao, this was pointed out: “This way of thinking which attempts to prematurely abolish commodity production and exchange, prematurely negate the constructive role of commodities, value, money, and price is detrimental to developing socialist construction and is therefore incorrect.” (4) Socialist commodity production must not only be retained, but must also be developed to consolidate the economic link between China’s industry and agriculture and between urban and rural areas in order to promote the development of socialist construction.