On the Socialist Transformation of Capitalist Industry and Commerce

Liu Shaoqi's speech at the meeting on socialist transformation of capitalist industry and commerce convened by the Political Bureau of the CPC Central Committee and attended by representatives of Party committees of provinces, municipalities and autonomous regions. It was written on November 16, 1955. It was included in the Selected Works of Liu Shaoqi (Part II) published by People’s Press in 1985.

The main contents of the speech are:

(1) It is emphasized that in order to build a socialist society, we must change capitalist ownership and individual ownership, and establish ownership by all the people and collective ownership. The methods, forms and length of time for changing these two forms of ownership, abolishing capitalist ownership in particular, can be decided upon in light of the objective conditions of different countries.

(2) It is pointed out that there are generally several ways to abolish capitalist ownership, one is confiscation, one is making it bankrupt, and one is redemption, and the Party’s line is to implement peaceful transformation, that is, to adopt the method of redemption to abolish capitalist ownership. It is best and most beneficial to use the method of redemption, the method of united front. Peaceful transformation of capitalist industry and commerce is also possible. Now we have this sufficient condition.

(3) It is pointed out that the task now is to educate capitalists, explain to them the principles and policies of the Party, and assure them that the future of socialism is bright. We should investigate and clarify their state of mind, study and solve their problems and worries of thought.

(4) It is emphasized that the transformation of capitalist industry and commerce requires an overall plan, and that this work should be carried out in a planned and step-by-step manner. All sectors must make concerted efforts towards this end, and Party committees must provide more effective leadership in this regard.