The People's Republic of China must abolish all the prerogatives of imperialist countries in China. It must confiscate bureaucratic capital and put it into the possession of the people's state. It must systematically transform the feudal and semi feudal land ownership system into a system of peasant land ownership; it must protect the public property of the state and of the cooperatives and must protect the economic interests and private property of workers, peasants, the petty bourgeoisie and the national bourgeoisie. It must develop the people's economy of New Democracy and steadily transform the country from an agricultural into an industrial one.
This article of the Common Program is a short statement about the general policy towards imperialism and feudalism.
The imperative for the People's Republic of China entails the eradication of all privileges held by imperialist nations within its borders. This necessitates the seizure of bureaucratic capital, transferring ownership to the state, and ensuring equitable distribution among the populace. Moreover, there is a need for a systematic overhaul of the feudal and semi-feudal land tenure system, transitioning it towards peasant ownership. The protection of state-owned enterprises and cooperatives, alongside safeguarding the economic interests and property rights of workers, peasants, the petty bourgeoisie, and the national bourgeoisie, is paramount. Additionally, fostering the growth of the New Democratic economy and progressively shifting from an agrarian to an industrialized nation are vital objectives. Most of these elements are in detail described in Chapter 4.
Now a survey follows on nationalizations. Mao Zedong told Mikoyan in February 1949 (See Part 4), that there are no plans for nationalization.
"Our policy with regard to private industrial enterprises must not repeat former mistakes, so as not to scare away the national bourgeoisie, therefore now we will not carry out the confiscation of private industrial capital and its enterprises."
The CCP has always made a difference between national enterprises and foreign businesses. The latter should be eliminated as soon as possible. Prior to May 1952, there was no comprehensive strategy for nationalization, except for American assets. The typical approach of the CCP involved coercing foreign companies into relinquishing their assets to the state under the guise of voluntary action, thus preempting any potential claims for compensation in the future. This was achieved by restricting foreign firms from generating profits or divesting their properties while simultaneously augmenting their obligations, thereby exerting pressure on them to comply with the state's demands. At the end of December 1950, the People's Republic of China decided to confiscate all American possessions and to freeze all private and national assets. This was in line with the decisions of the 6th CCP congress in 1928 which stated the nationalization of all foreign firms.
In 1951, the Chinese government decided to take over all American funded schools and institutes and to destroy all American influences. Before the Second World War, there were 13 American-supported colleges and universities in China, many of which had been created by religious congregations. See Article 41. Moreover, an important percentage (of the order of 50%) of the Chinese professors had studied in the United States for some time. In short, there was a strong cultural connection between China and the United States. In April 1952, the UK and the PRC finalized a commercial agreement, yet British possessions in Shanghai, Tianjin, and Wuhan were still confiscated. Conversely, by 1957, ten British-owned companies continued to operate in Shanghai. In reality, distinguishing the "foreign" from the "Chinese" proved challenging. British commercial enterprises were deeply intertwined with the Chinese economy in numerous ways. Addressing their removal posed complex challenges that couldn't be neatly resolved along ideological lines. All schools, churches, and other social or cultural organizations which received money from foreign countries were obliged to cut off their relations with their financiers.
The most important tool to destroy feudal remnants was the Land reform law. On June 30, 1950, the government promulgated this law. This law stipulated a division of land, livestock, and farm implements of the rich farmers (10% of the total number of farmers) to the poor farmers (70%) and to the small and medium farmers (20%). To guide this law properly, the government announced four days later the decision that regulated class status in the country. In his explanation of the land reform law, Liu Shaoqi emphasized that the policy to preserve the rich peasant economy is intended as a long-term approach, not a temporary measure. This approach will remain in place throughout the New Democratic stage, as the rich peasant economy will only become obsolete once large-scale mechanization, the formation of collective farms, and socialist transformation are fully implemented in rural areas—objectives achievable only in the more distant future. This is why, at present, preserving the rich peasant economy is advocated.Article 27 of the Common Program relates to this law.
