European Journal European Journal of of East Asian Studies 13 (2014) 262–283 East Asian Studies brill.com/ejea ‘A Helpless Choice’ Liu Hongsheng’s Zhanghua Company in the Throes of Socialist Transformation Zhao Jin East China Normal University
[email protected] Abstract By October 1953, when the Central Committee of the ccp formally decided to embark on the transition to socialism, the Chinese government already had overall control of the national economy. The newly announced ‘General line of transition to socialism’ heralded the incorporation of private industry into the national production plan, but it triggered all kinds of struggles in the course of public–private joint management. This paper takes a micro-level approach based on the study of one private company, Liu Hongsheng’s Zhanghua Woollen Textile Company, from the perspective of the private enterprise itself. Despite its lofty ideals of eliminating private ownership, the Communist Party of China had to accommodate its policy to the reality that the recovery of the national economy required the input of the private economic sector. The paper argues that the capitalists supported the ccp’s policy on the surface, but did their best to seek the development of their own enterprises. The ccp made concessions, but the basic thrust of its strategy remained geared towards the demise of private entrepreneurs. Even an influential ‘national capitalist’ like Liu had to hand over his enterprises. Keywords Shanghai – public–private management – Liu Hongsheng – industry – socialist trans- formation In 1949, when the People’s Republic of China was founded, Mao Zedong upheld the role private entrepreneurs could play in the country: ‘private capitalism ranks second in modern industry, it is a great force that cannot be underesti- © koninklijke brill nv, leiden, 2014 | doi: 10.1163/15700615-01302007 Downloaded from Brill.com09/30/2021 06:42:10PM via free access ‘a helpless choice’ 263 mated’.1 After decades of upheaval and war, Chinese industrialists could look forward to a new spring.