Kuomintang - Ideology in Mainland China (1920s-1950s) - Socialism and Anti-capitalist Agitation

Socialism and Anti-capitalist Agitation

The Kuomintang had a left wing and a right wing, the left being more radical in its pro Soviet policies, but both wings equally persecuted merchants, accusing them of being counterrevolutionaries and reactionaries. The right wing under Chiang Kaishek prevailed, and continued radical policies against private merchants and industrialists, even as they denounced communism.

One of the Three Principles of the People of the Kuomintang, Mínshēng, was defined as socialism as Dr. Sun Yatsen. He defined this principle of saying in his last days "it's socialism and it's communism.". The concept may be understood as social welfare as well. Sun understood it as an industrial economy and equality of land holdings for the Chinese peasant farmers. Here he was influenced by the American thinker Henry George (see Georgism) and German thinker Karl Marx; the land value tax in Taiwan is a legacy thereof. He divided livelihood into four areas: food, clothing, housing, and transportation; and planned out how an ideal (Chinese) government can take care of these for its people.

The Kuomintang was referred to having a socialist ideology. "Equalization of land rights" was a clause included by Dr. Sun in the original Tongmenhui. The Kuomintang's revolutionary ideology in the 1920s incorporated unique Chinese Socialism as part of its ideology.

The Soviet Union trained Kuomintang revolutionaries in the Moscow Sun Yat-sen University. In the West and in the Soviet Union, Chiang was known as the "Red General". Movie theaters in the Soviet Union showed newsreels and clips of Chiang, at Moscow Sun Yat-sen University Portraits of Chiang were hung on the walls, and in the Soviet May Day Parades that year, Chiang's portrait was to be carried along with the portraits of Karl Marx, Lenin, Stalin, and other socialist leaders.

The Kuomintang attempted to levy taxes upon merchants in Canton, and the merchants resisted by raising an army, the Merchant's volunteer corps. Dr. Sun initiated this anti merchant policy, and Chiang Kai-shek enforced it, Chiang led his army of Whampoa Military Academy graduates to defeat the merchant's army. Chiang was assisted by Soviet advisors, who supplied him with weapons, while the merchants were supplied with weapons from the Western countries.

The Kuomintang were accused of leading a "Red Revolution"in Canton. The merchants were conservative and reactionary, and their Volunteer Corp leader Chen Lianbao was a prominent comprador trader.

The merchants were supported by the foreign, western Imperialists such as the British, who led an international flotilla to support them against Dr. Sun. Chiang seized the western supplied weapons from the merchants, and battled against them. A Kuomintang General executed several merchants, and the Kuomintang formed a Soviet inspired Revolutionary Committee. The British Communist party congragulated Dr. Sun for his war against foreign imperialists and capitalists.

Even after Chiang turned on the Soviet Union and massacred the Communists, he still continued anti merchant activities, and promoting revolutionary thought, accusing the merchants of being reactionaries and counterrevolutionaries.

The United States consulate and other westerners in Shanghai was concerned about the approach of "Red General" Chiang, as his army was seizing control in the Northern Expedition.

Contrary to false Communist propaganda that Chiang was pro capitalist, Chiang Kai-shek was the enemy and behaved in an antagonist manner to the capitalists of Shanghai, often attacking them and confisticating their capital and assets for the use of the government, even while he was fighting the communists.

Chiang crushed pro communist worker and peasant organizations, and the rich Shanghai capitalists at the same time. Chiang continued Dr. Sun Yixian's anti capitalist ideology, Kuomintang media openly attacked the capitalists and capitalism, demanding government controlled industry instead.

Chiang also crushed and dominated the merchants of Shanghai in 1927, seizing loans from them, with the threats of death or exile. Rich merchants, industrialists, and entrepreneurs were arrested by Chiang, who accused them of being "counterrevolutionary", and Chiang held them until they gave money to the Kuomintang. Chiang arrests targeted rich millionaiares, accusing them of Communism and Counterrevolutionary activities. Chiang also enforced an anti Japanese boycott, sending his agents to sack the shops of those who sold Japanese made items, fining them. Chiang also disregarded the Internationally protected International Settlement, putting cages on its borders, threatening to have the merchants placed in there. He terrorized the merchant community. The Kuomintang's alliance with the Green Gang allowed it to ignore the borders of the foreign concessions.

In 1948, the Kuomintang again attacked the merchants of Shanghai, Chiang Kaishek sent his son Chiang Ching-kuo to restore economic order. Ching-kuo copied Soviet methods, which he learned during his stay there, to start a social revolution by attacking middle class merchants. He also enforced low prices on all goods to raise support from the Proletariat.

As riots broke out and savings were ruined, bankrupting shopowners, Ching-kuo began to attack the wealthy, seizing assets and placing them under arrest. The son of the gangster Du Yuesheng was arrested by him. Ching-kuo ordered Kuomintang agents to raid the Yangtze Development Corporation's warehouses, which was privately owned by H.H. Kung and his family. H.H. Kung's wife was Soong Ai-ling, the sister of Soong May-ling who was Ching-kuo's stepmother. H.H. Kung's son David was arrested, the Kung's responded by blackmailing the Chiang's, threatening to release information about them, eventually he was freed after negotiations, and Ching-kuo resigned, ending the terror on the Shanghainese merchants.

The Kuomintang also promotes Government-owned corporations. The Kuomintang founder Sun Yat-sen, was heavily influenced by the economic ideas of Henry George, who believed that the rents extracted from natural monopolies or the usage of land belonged to the public. Dr. Sun argued for Georgism and emphasized the importance of a mixed economy, which he termed "The Principle of Minsheng" in his Three Principles of the People.

"The railroads, public utilities, canals, and forests should be nationalized, and all income from the land and mines should be in the hands of the State. With this money in hand, the State can therefore finance the social welfare programs."

The Kuomintang Muslim Governor of Ningxia, Ma Hongkui promoted state owned monopoly companies. His government had a company, Fu Ning Company, which had a monopoly over commercial and industry in Ningxia.

The Kuomintang Muslim Governor of Qinghai, General Ma Bufang was described as a socialist. An American scholar and government advisor, Doak Barnett, praised Ma Bufang's government as "one of the most efficient in China, and one of the most energetic. While most of China is bogged down, almost inevitably, by Civil War, Chinghai is attempting to carry our small-scale, but nevertheless ambitious, development and reconstruction schemes on its own initiative"

General Ma started a state run and controlled industralization project, directly creating educational, medical, agricultural, and sanitation projects, run or assisted by the state. The state provided money for food and uniforms in all schools, state run or private. Roads and a theater were constructed. The state controlled all the press, no freedom was allowed for independent journalists. His regime was dictatoral in its political system. Barnett admitted that the regime had "sterm authoritarianism" and "little room for personal freedom".

Corporations such as CSBC Corporation, Taiwan, CPC Corporation, Taiwan and Aerospace Industrial Development Corporation are owned by the state in the Republic of China.

Marxists also existed in the Kuomintang party. They viewed the Chinese revolution in different terms than the Communists, claiming that China already went past its feudal stage and in a stagnation period rather than in another mode of production. These marxists in the Kuomintang opposed the Chinese communist party ideology.