National Capital and Economy of National Capitalism

National capital generally refers to the capital owned by the national bourgeoisie in colonial, semi-colonial or state-wise independent countries. Its existence and development play a certain role in promoting the development of social productive forces and striving for national economic independence. In colonial and semi-colonial countries and regions, on the one hand, national capital is often oppressed and excluded by domestic and foreign monopoly capital, on the other hand, it is dependent on foreign monopoly capital to varying degrees.

China's national capital was mostly small and medium-sized capital owned by the middle bourgeoisie and the upper petty bourgeoisie. It began to take shape in the 1860s and 1870s. Compared with feudal landlord economy and individual peasant economy, it had higher labor productivity, was a more advanced production relationship, and represented an advanced social and economic force. In history, it had a positive and progressive side. Because of this, Mao Zedong pointed out in his report “On Coalition Government” on April 24, 1945: "It is not domestic capitalism but foreign imperialism and domestic feudalism which are superfluous in China today, indeed, we have too little of capitalism.” From an economic point of view, "The substitution of a certain degree of capitalist development for the oppression of foreign imperialism and domestic feudalism is not only an advance but an unavoidable process. It benefits the proletariat as well as the bourgeoisie, and the former perhaps more.” However, in semi-colonial and semi-feudal China, national capital was inextricably linked with imperialism and feudal landlord economy. Therefore, the most basic characteristic of China's national capitalist economy was its dual character, that is, on the one hand, because of the oppression and exploitation of imperialism and feudalism, it had a certain degree of progress in anti-imperialism, anti-feudalism and the development of national economy; on the other hand, it showed its weakness because its development could not be achieved separately from imperialism and feudalism.

The national capitalist economy was never the main economic form of Chinese society; its development was extremely unbalanced, and there was no independent industrial system; the technology was backward, and the scale was narrow. In a word, in semi-colonial and semi-feudal China, the national capitalist economy of China was severely oppressed and restrained by imperialism, feudalism and bureaucrat-capitalism, and it was impossible for it to achieve full independent development.