NEW
RELEASE:
THE YANKEE
IMPERIALISM IS THE ONLY HEGEMONIC SUPERPOWER AND THE MAIN ENEMY OF THE PEOPLE
OF THE WORLD
ECONOMIC
BASIS OF IMPERIALIST COMPETITION
We, as
Chairman Gonzalo teaches us, are in favor of Chairman Mao's theory of the
"three worlds are delineated" to set the strategy and tactics of the
world revolution and, therefore, are opposed to the Teng´s revisionist theory
of the "Three Worlds" which is nothing but to lag behind one of the
two superpowers.
So, first,
let's see how inter-imperialist competition is, what the economic basis for US
hegemony is.
In this new
delivery or continuation of our Notes on the international situation, we
continue with what is offered, ie the analysis of the objective situation,
exposing economic data set, which show us very clearly how goes the dispute
between monopolies and imperialist countries for world domination and,
therefore, the economic base of the only hegemony of US imperialism and
increased oppression and pillage of the vast majority of countries and people
of the world by a small handful of imperialist countries.
Data, that
have to be understood in relation to the ones already published, about the
process of buroucratic capitalism in world. All this shows, then, that
imperialism is increasingly monopolistic, more parasitic and in most advanced
rot or decay and sinking hopelessly into a complex series of wars of all kinds.
And, after imperialism what is next? Therefore, all of it proves how
imperialism mature even more the conditions for the world revolution. Like its
been sweep away since the 80’s of the last century. We are at stage of
strategic offensive of world proletarian revolution. From here, it expressed,
worldwide, the development of the revolutionary situation in uneven
development, mainly at the base of the world revolution in the oppressed
countries of the Third World, coming to Europe itself. We are at new wave of
the world proletarian revolution. In summary: the world revolution, despite its
long and hard vicissitudes, can only end in victory wich demands world peoples
war. And the hub of the entire situation, as national and international, is the
Communist Party, Marxist-Leninist-Maoist, mainly Maoist, militarized to
initiate and develop people's war in each country, inseparable and
irreconcilably struggling against imperialism, reaction and revisionism.
To do so,
we’ll use a recent study about the subject
from Raúl Ornellas (7), to illustrate better the development of the
struggle for a new distribution between the imperialists, in relation to
changes in economic strength between these, in light of the recent crisis and
relapse suffering, which currently do not end up leaving, noting the class
limitations of the study, interpreting their results in light of our ideology
Marxism-Leninism-Maoism, Gonzalo Thought, calling things by their name and we
will synthesize our own point of view about it.
The study
cited above, for example, deals with " business competition and world
economic leadership contention," based in part "on data for the five
hundred largest companies ranked by sales" by the Fortune Global 500
magazine, where "an analysis of the sales and profits by groups of
undertakings" is made, ie, the struggle among the largest global monopolies,
as part of inter-imperialist competition. This is of utmost importance to
understand the changes in the other hill. Lenin taught that "the deepest
economic foundation of imperialism is the monopoly", which has been
generated by financial capital, "first monopolistic associations divide up
domestic market among themselves, then divide the world market directly to each
other and among a handful of imperialist countries. " (8)
The study
for "five hundred companies" gives the following result:
Two general
trends stand out: the high concentration in the six groups of dominant
companies, which have their origin in the United States, Japan, China, Germany,
France and England, which account for over 70% of revenues during the study
period. The emergence of an incipient diversification of business sources is
also observed, reflected in the increased share of the group "Other",
which concentrates 27% of the total income of the five hundred in 2008 (...)
highlights the predominance of the US business group, which since 1996 has the
largest share of the dominant groups, although between 2007 and 2008 it lost
dynamism. Correspondingly, the group of Japanese origin suffers a constant
crash and lost 60% of its quota. European companies have a stable behavior
tends and a slight increase towards the end of the period; the German group has
the best performance, with a share of more than 11% of the income of the five
hundred in 2008. Undoubtedly the most notable performance is the group of
companies of Chinese origin, which within only fifteen years passed from a
completely marginal share to the level of the European powers. However, an
important asymmetry between the US group and other companies (...) is
maintained. "(9)
Here it is
necessary to comment briefly on the part of the above quote, saying:
"group of Japanese origin suffers a constant crash". On this, we
consider that the study does not take into account the income of its
subsidiaries operating, for example, as seen in the delivered notes on
bureaucratic capitalism, in Southeast Asia, as the income of this group; such
as, for example, in Taiwan and South Korea granddaughters or subsidiaries in
China, it is counted as if they were "new companies" of the host
countries. No one takes into account that with the so called
"restructuring of Japanese industry", Japanese imperialism, through
the use of direct investment, loans,
technology transfer, especially in Asia,
increased its monopoly position in the world market, increased its power
and thus its parasitism, living from the clipping coupons, thereby also
deepened its decay, its collapse. And that goes for the case of the group
"Other", which according to the statement made by us it does not come
to be anything other than affiliates of the largest imperialist or subject to
these monopolies, by an intricate web of relationships to the "holding
system".
Therefore,
this index of "500" does not express to the full extent the
accumulated power of the greatest imperialist monopolies. It does not express
how power and wealth is concentrated globally more markedly in fewer hands.
Therefore, the Ornella´s study, based on this index of "500", we take
it as a reference to contrast with other sources that we are quoting here and
to better illustrate the findings in each part as we go on.
The
increased power of Japanese imperialism shown in our footnotes to bureaucratic
capitalism, shows that these imperialists, particularly in Asia, but also in
the rest of the world have been able to develop as much as the Yankee monopoly
networks or chains with its subsidiaries and other forms of penetration in
oppressed countries whose main oppressor is Yankees, all of which occurs within
the current stage undergoing imperialism. It is an expression that shows that
imperialism is monopolistic, the most parasitic and is sinking deeper. That is,
the more it advances in its process the more its own contradictions develop and
it sinks further, as demonstrated by each of its cyclical crises within its
general and final crisis.
We recall
that subsidiaries global growth of the mothers monopolies has been very fast,
so between 1946 and 1961 were found 3,550 new subsidiaries (daughters), and
from that year until 1996 according to UN figures were created 260,000, which
Hübner quotes, who concludes: "While the developed capitalist economies
represent the headquarters of the business centers, they give the economies of
the Third World and the middle eastern Europe the role of headquarters of their
subsidiaries". (10)
The monopoly
profits for the period:
(...) Until
2006, the profit concentration in the groups of dominant firms, as in the case
of income, is equally marked. The years
2007 and 2008 show a significant drop in the shares of these groups, except for
the Chinese group. By 2008, 48% of the profits, greatly reduced, of the most
important companies were generated outside dominant firms groups (...) The
share of total profits of the US group is reduced to just 25% in 2007 and 2008,
reflecting the depth of the crisis and the breakdown of the financial
accumulation mechanisms. It is stressed that even in the midst of what some
analysis advertised as the end of the economic supremacy of the United States,
its leading-edge companies keep a significant share of the profits. Instead,
the group of companies of Japanese origin reached absolute losses in 2008,
while the Chinese companies had a growth in their share to reach 12% of all
". (11)
Then
Chinese companies begin to decrease even after "the Chinese government
injected since 2008 copious amounts of credit in the economy over the past four
years. But every year, economic growth has gone down."(12) Therefore, the corporate debt has immensely
increased. These data bring out what´s the current state of the imperialist
struggle for economic domination of the world market, where we find the US
imperialism dominance and in the struggle for sources of raw materials, the
results are not very different. We have to give the corresponding
interpretation to the “advance of the Chinese group" or "dominant
companies with a Chinese origin", we need to relativize their true
economic weight in the light of all data, conclusions which we will extensively
discuss in these pages. As for the Chinese firms controlled by the state, now
it is spoken of “the rise and fall of the firms under state control" as
"PetroChina" mainly by "the decline in commodity prices and the
recent decline in sales in emerging markets "(13).
What the
imperialism beautifiers, such as the opportunistic Hudson(14) , hold is that
the rising prices of "raw materials, mainly oil", will benefit the
countries where these sources are located and that it "threats the
stability of the world´s economy ".
Such claim is completely overridden since reality is quite different,
and most of the benefits, most of the earnings compounded by the rising
commodity prices like oil, etc. end up mainly in the multinationals, so to say,
in the imperialist countries. This, without counting the enormous benefits that
the imperialist states collect from the taxes applied to energy derivatives.
The smallest part of the earnings went to the bureaucratic capital
"transnationals" of the Third World that show their role as
intermediaries for the imperialist capital, dependent or subjected to these
same imperialist countries. The imperialist companies, although most of the
sources are outside their territories, control the production of products with
higher added value and thus, in fierce competition among them, control the main
profit source. And this struggle for control, the Yankee imperialism not only
maintains but it increases its dominance.
"(...)
the extractive activities, especially petroleum refining, have become the
activity, undertaken by major companies, with the highest revenues reports. The
share of oil refining jumps from 7.8 to 17.7% of the total revenues of the
sample between 1994 and 2008 (...) The companies in the United States and
England-Netherlands are clearly dominating this activity: they concentrate more
than 30% of the total mining activity revenue between 1994 and 2006 (...),
their share increased exceeding 40% despite the crisis. Another unusual feature
of competition in this activity is that the groups of dominant firms accentuate
their control over income, reaching a maximum combined market share of 66% in
2007. Companies from China significantly increased their share of total income
(8.7% in 2008) as a result of the high number of overseas acquisitions. These
features indicate that the companies from the United States and
England-Netherlands compete from a particularly strong position, these
countries long ago have managed to control much of the hydrocarbons sources and
have the largest processing capabilities (...) the high level of concentration
that characterizes the mining activity can be seen: Thirteen companies
contribute more than 66% of the total revenue from this activity. Of these, the
Americans are the most numerous, with Exxon at its head during twelve of the
fifteen years considered. British companies play a primary role in this
activity; Royal Dutch Shell narrowly competes with US companies and the BP
shows an upward performance until 2004. In recent years, Chinese companies
Sinopec and China National Petroleum developed their productive capacities and
placed themselves behind the United States and England-Holland´s
companies". (15)
"(...)
From these data, draws attention the limited role of big national producers,
Petroleos de Venezuela, Petrobras, Petronas, Pemex, and the absence of
corporations of the united Arab emirates. This reveals the control of the
transnational on the most profitable segment of refining; leaving domestic
companies the role of mere hydrocarbons extractors. " And as a conclusion
of this struggle Ornellas says: "In short, competition in the oil and
mining activities shows that US companies still have the most important part of
the market, which is reinforced by formal and informal partnerships that have
been webbed with the Anglo-Dutch companies. The other companies groups
concentrate on satisfying their energy needs, as they are dependent on external
supplies. This feature centrally concerns the Chinese companies." (16)
The
emphasis of the quotation is important because it shows that, in this key
economic activity for world domination, US imperialism maintains control and
the Chinese imperialists seek to develop to meet their own needs. The
difference is important. In September 2013 American oil Exxon Mobil (second
place) and Chevron (ninth place) appear among the 10 largest companies in the
world by market value. Therefore they are at the head of the oil companies
worldwide.
And the
struggle for raw materials among the imperialists will intensify and our
countries are the spoils of that dispute. That is the imperialist monopolies´
interest and that is their states’ interest, as we read in the quotation of a
senior German government official, that we cite to better illustrate this, in
this regard, it states:
"Almost
half of the 54 states of the African continent are counted as rich in raw
materials. Here licenses are awarded in the next ten years for exploration and
exploitation for decades, with vast economic, social and environmental consequences
(...) all of us in politics, economics and science should not be innocent: the
World Trade organization´s (WTO) agreements do not determine, at the end, the
rules but only the power of the interests at stake. Not only with authoritarian
societies but also with the intended or true friends. While in the past 20
years many people in the economy and politics thought, that row materials
security would be reachable only with free trade in the world market, few
believe in this now. My position is clear: We need a state policy for raw
materials. "(17)
All these
facts and figures, as well as the quotation of the representative of German
imperialism on the control of resources, teach us what the basis of the
imperialist wars of aggression against the oppressed countries is, its true
character is that of a predatory war for the new distribution after the
bankruptcy of the other superpower, the collapse of the Soviet social
imperialist superpower, who is reduced to Russia today, but yet nuclear
superpower.
The Yankee
imperialism, in collusion and conflict with the other imperialist powers,
develops this predatory imperialist war in all the vast war theater ranging
from Afghanistan to sub-Saharan Africa, area that would further expand. Wars
where our countries are the booty. Which involve the development of two
contradictions, ie the worsening of the contradiction between the oppressed
nations and imperialist countries; and the third contradiction, the
inter-imperialist contradiction. As
Lenin clearly shows "the class character of the struggle" "even
if the forms of struggle varies” (18)
and thus we see what the results of almost 25 years of wars are. In
addition, the imperialist war of aggression has to affect the imperialist
countries themselves, as it is already doing in the class struggle between the
proletariat and the bourgeoisie, namely, more mature objective conditions for
the task of reconstituting the Communist Parties in the bowels of the
imperialist beast.
Let us
continue with this international situation radiography, where we will continue
proving how the US imperialism has used
its status as a sole hegemonic superpower by economic and extra-economic
mechanisms such as the "neo-liberalism" and the war of aggression, to
take advantage of their rivals, continuing as well with its collapse, in the
cited study we read:
Competition
in financial activities:
"Given
the depth of the crisis, competition in today's financial activities is crucial
(...) In the face of catastrophic interpretations, emphasizes the strengthening
of the US-based banks, whose share in the total revenues is steadily increased
between 1994 and 2002 to stabilize around 16% in the recent years. Although
this performance is not a crucial competitive advantage, it does indicate that,
through deregulation and concentration, US banks have overcome their lag behind
Asian and European banking, to emerge as the dominant group in this activity.
The 2008 data reflects the first bankruptcies and revenue reductions occurred
since 2007, although it is expected further adjustments for 2009 ".
In this
regard we say that in his capacity as hegemonic superpower US imperialism
imposed on them the other "financial deregulation" despite their
efforts to counter the advantage of US imperialism in the framework of
agreements on "Basel" (now already in the "Basel III") And
nothing happens! Because the effectiveness of these "agreements" is
similar to the "WTO agreements" as the representative of the German
government in the appointment (No. 17), which we repeat in part:
"agreements ... determined not to end the game rules but the power of the
interests at stake. "
The study
to draw corresponding conclusions, took the data of competition in the
financial activity until 2008. In the following years this trend continued. In
2013, we read in the European edition of WSJ that the result is that
"banks (US) who were giants before the crisis are now even bigger."
(19)
Continuing
with the Ornellas analysis:
"The
British and French banks consolidate their shares in total revenues, with which
they place themselves near the US banks, while the group of German origin back
up in their participation. The Chinese banks increase their presence in recent
years with 7% of total revenue in 2008, although its average share for the period
is 4%. This increase reflects the balances of the financial crisis. "
"The basic idea is that the monetary
union can only be stable if the banking system is international," says Mr.
Wolff (...) "The only possibility to quickly move capital from north to
south is through the taking of Spanish and Italian banks, by Germany or
Austria´s banking institutions, said an official in reference to the
plan."(20)
This is the
struggle within the EU among imperialist banking monopolies and the countries
to which they belong. And that's the basis of what is in the news. But let us
continue with Ornellas:
When we
deal specifically with China and "merely rentier activity which means
buying debt ", we will see the domestic and global implications of this.
For now, to get more accurate conclusions about changing power relations among
the superpower and the imperialist powers, for redistribution, as taught by
Lenin, and specifically to answer: why is China at present time forced to act
as a "soft power" at the level of world politics?, Let's weigh some
more data on other activities, which gives us the cited study.
The
commerce competition:
"In
trade, the first distinctive feature is that the groups of dominant firms
account for 90% of revenues and leave little room for other competitors. US
dominance is undeniable: their companies account for over 50% of the total
revenue from 2003 and even so in 2008, the year of crisis. This has as a
corollary the constant decline in the share of companies of Japanese origin,
going from 59 to 9% between 1994 and 2003, to slightly increase to 13% of the
total revenue in 2008. Among the European powers, French companies show the
best performance to almost triple its share in total revenues. Chinese
companies have a rising trend, but its 5.3% share in 2008 does not seem to
correspond to the importance of the "new workshop of the world".(22)
This
panorama of competition in the intermediation trade activity points out the
importance of foreign capital in the vigorous growth of the Chinese economy. So
what national financial records recorded as Chinese exports reappears in the
transnational trade companies’ distribution channels, supporting the positions
of US, Japanese and European companies"
Ornellas, cited study (23).
Regarding
the "share of the companies of Japanese origin" the shown percentages
reveals only the appearance, hiding the true power of these companies through
the FDI, as already noted above. The underlines in the quote above is important
in terms of the real world economic force of China, to illustrate this
situation, we quote the results of a "microeconomic" study on the
export of a "high technology" commodity “made in China ", which
states:
“A
micro-economic analysis of the international value chain of the iPod has
clearly demonstrated the discrepancy between trade performance and value
creation across countries (Linden et al., 2009). Using firm-level information,
the analysis showed that China was merely specialized in the assembly of the
imported intermediates into the final product which is typically generating
relatively little value. The largest part of the value creation throughout the
production process was done and captured by the producers of high value
components (United States and Japan) and the seller of the iPod (Apple in the
United States). The iPod example shows that the concept of competitiveness may
sometimes need to be assessed at a detailed level, in order to fully understand
what drives the international performance of countries."(24)
THE US
IMPERIALISTS HAVE TAKEN ADVANTAGE FROM THE CAPITAL EXPORTS
The data
previously mentioned, is a clear example of how the struggle for redistribution
of the world among the great imperialist monopolies is given and, therefore, among
the imperialist states, a report of a German imperialism institute, explains:
"Hanson et al. (2005) examine the
vertical fragmentation of activities around the globe by US multinational
firms. They find that US headquarters’ demand for intermediate inputs imported
from their affiliates abroad is higher when affiliates face lower wages for
less skilled workers. This is in line with the hypothesis that production is
offshored to affiliates in low cost locations and their output is then used by
headquarters as inputs in the US. "
The US
imperialists have taken advantage in the capital exports in this form, but is
also practiced by multinationals from other imperialist countries like France,
England, Germany, etc. As the report of that institute cited says:
"Close
by Central and Eastern European countries and new European Union member states
are attractive locations for German firms, and not only for low wage
manufacturing activities. However, the value generated in these countries and
flowing to German firms is still small …recording a much faster growth than
other countries menbers of EU." (25)
Here we see the role of the EU market in the
global competition, first, to German imperialism´s benefit in competition with
the USA superpower and, second, how the inter-imperialist is given struggle in
Europe, among the member countries of the called European Union (EU), where the
one to take greater advantage is who wields hegemony in this imperialist
association and third, how the division among imperialist countries and
semi-colonial countries is given, and what are the spoils to be divided among
them, the "countries of Central and Eastern Europe and the new member
states". That is, in this case, the remains of the former Soviet social
imperialism. "Third World that goes right into Europe" (Chairman
Gonzalo).
Also in the
arms industry and arms exports:
As for the
arms industry, here is clearly shown how the imperialist forces are, the
struggle among them and the objectives that go along with arms sales, the largest
arms exporting countries are: 1. USA 2. Russia 3. Germany 4. France 5. China 6.
Britain, Spain 7, 8. Italy.
"anyway
is a snapshot, soon would likely dramatically grow the amount of weapons
transfer, since currently as part of the policy (the report refers to the EU)
as well as industry a full-scale arms exports offensive is being launched
"(... ..) Said a consulted source.
YANKEES
RECOVER IN THE AUTOMOTIVE INDUSTRY
In the
automotive industry, continuing with Ornellas´ study, we have:"Despite all that has been argued about American decline in the automotive industry at the level of the largest companies, the group of US companies remained ahead until 2003. They were moved by the Japanese companies that maintained a share of total revenues close to 30% during all the period. German companies show a rising trend with 27% of total revenues in 2008. Chinese companies show significant progress since 2005, but its market share was only 3.7% in 2008, below from Italian and Korean." (26)
The
companies that dominate the car sales world market by volume to January 1,
2013, are: Toyota (Japan) in the first place, followed by General Motors
(Yankee) and Volkswagen (VW, Germany, Third place). The latter plans to move to
first place in sales volume in 2018, with sales of 10 million cars of its
different brands per year, currently, its sales in billions of Euros is 192.7,
while that of Toyota is 196.9.(27)
As for the
Chinese car companies, they produce cars in joint ventures where the foreign
partner, as a part of their "technology transfer" investment package,
provides the auto parts package for final assembly in China with little value
added. Or in other cases a company is created to produce cars as Joint
Ventures, for example Chinese-Israeli, and auto parts (pack for self-assembly)
comes from Austria and Canada (technology). But in the headlines it reads
"Auto of Chinese production passes difficult test made by the
EU" (28).
The
imperialist companies that dominate the global automotive market, are competing
to fill a "gap" in the existing Chinese market with respect to small
luxury cars and in India with small cars with affordable prices to the
potential customers in those countries.
The
greatest imperialist crisis: The vast socially produced wealth is constantly
increasing, but this socially produced wealth is increasingly appropriated by a
handful of big monopolists from the imperialist countries and by the third
World countries´ great bourgeois of bureaucratic capitalism at the
imperialist´s service. That is, increasing private appropriation of socially
produced wealth (the socialization of production worldwide grows ever more
steadily with the growth of monopolies and global activity, such as so-called
"global production value chains ") and the increase of power throughout
the world of the imperialists and their lackeys, with the result of increasing
impoverishment and oppression of the masses in the imperialist countries and,
to a much greater extent of the masses of the backward countries.
The result
of all the progress and all the wealth: sharper and continuous (shorter cycles)
economic crisis within the general and final crisis that overwhelms
imperialism- the fiercest struggle (sometimes violent and sometimes not
violent) among the finance capital monopolies and imperialist countries by
exporting capital and goods; fiercer struggle for raw materials and other
natural resources and cheap labor of oppressed countries.
Better
objective conditions for the world revolution, the masses are rising in
rebellion throughout the world - Further collapse of imperialism, complex
series of wars in which imperialism will be definitely sweep away by world
revolution- period of 50-100 years, stage of the strategic offensive of the
world revolution, new great wave of revolution- wars of resistance and people´s
wars which are strategically principal in perspective.
Development
of the subjective conditions, hard struggle against revisionism, difficult,
complex but tenacious struggle by the heroic fighter who leads the revolution:
the Communist Party. The international proletariat and peoples of the world are
advancing by embodying Maoism, generating Marxist-Leninist-Maoist militarized
Communist Parties to initiate and develop people's war until obtaining
worldwide people's war to finally sweep imperialism from the face of the Earth.
We say
again, each new global economic crisis, cyclical crisis that happens within the
general crisis of imperialism leads to a sharper struggle for markets around
the world through the "economic territory", becoming acuter the
contention.
For
example, the bad situation in the
Southern Europe markets, Volkswagen´s traditional markets where it operates
with some daughters companies and with some brands (Seat for example), makes
the struggle sharper to expand their market shares in countries like the
imperialist China and semi colonial India, that although are also affected by
the economic cycle and the general crisis, have a "car market on
development because of the contained
consumption " and they seek to satisfy with small cars appropriate to
their consumption ability, as seen before.
The same
automotive monopoly, VW and its daughter company "Audi", who in turn
has its businesses in Hungary, Belgium, Spain, India, China and Indonesia,
expands its capital and commodities exports like this:
"In
2016 a new factory in Mexico will begin operation. And quickly there will also
roll in the production line Audi cars in Brazil. The head of the Board of Audi,
Rupert Stadler and the head of Production will meet on Tuesday in Brasilia with
Chairman Dilma Rousseff, to close the deal for the construction of two variants
of the Audi A3 model in Curitiba (Brazil), after many months of negotiations.
Stadler wants to increase the sales volume by 2020 to two million cars –by the
end of this year the 1.5 billion cars mark is expected to be passed. Brazil is
in this strategy an important part (...) From the logistics center in Diusburg
the A3 model auto parts are to be sent by sea to South America. " (29)
The news
is: "The fall in prices of raw materials, the depressing growth rate, a
shaky housing market and rising inflation have disenchanted the economic
miracle country: Brazil. The Falling value of the Bonds and the Shares are the
consequence. But now, after the collapse of the emerging countries, a very
promising speculation possibility opens for risk-lovers investors: such as Real
Brazilian currency bonds issued by the Credit Institution for Reconstruction
(KfW, for its acronym in German ). Still until spring (in the Northern
Hemisphere, our note) bonds were rated 100 percent, and then fell in July to 91
percent. At this time these bonds are at 92.30 percent of their value. Having a
9.4 percent yield for each year running up to March 2016. The loss in the
course of the bonds (ie Brazilians "sovereign bonds"
¡"sovereign"! how can it be?, our note ) is due in part to confusion.
Because behind the Real-Bond is not the emerging country Brazil (as you will
see now the media use the term "emerging" quite ironically, our
note), whose rating by Standard & Poor's in June as debtor has a
"negative" observation (where the BBB rating always mean investment
grade). Bonds´ guarantee is the federal development bank KfW, and it has - as
the Federal Republic of German- the maximum AAA rating. With this should be
ensuring that the bonds at their spire date in March 2016 will be paid at 100
percent. An open flank is naturally currency. In 2010 the Brazilian Real was 46
cents per Euro, today it still is 33 cents of value. That makes 28 percent less
in three years. To balance such bankruptcy, an annual yield of about nine
percent would be needed - but that's just the yields of the KfW bond until 2016
". (30)
Continuing
the Ornellas study:In the informatics industry:
"As in any other activity, the leadership of US originated corporates is solid, controlling between 65 and 80% of the income of this activity. Japanese companies have over 20% of the market share, but its presence is based on -and limited to - its domestic market and in the manufacture of peripheral equipment rather than more complex and profitable systems and products.
In
informatics we found again the paradox that the "Made in China" of a
growing number of software products and services does not represent the
emergence of Chinese companies, but the export success of large US, Japan,
Singapore and Taiwan transnationals, that leverage the economic and social
conditions of the Chinese territory to internationalize their productions. “ (31)
Here, it´s
worth to make a brief comment on the quotation, in the part pointing to
Singapore and Taiwan, clarifying that these countries have bureaucratic
capitalism and its companies are subject to the "holding system"
mainly of large Yankees or Japanese monopolies,
as we have seen.
As we will
see below, as for China and its "export model", it is in full
deflation, since the growth in exports that occurred between 2003 and 2007 had
an average annual growth of 30%, then went in 2011 to 19%, has declined to an
average of 9.2% in the first eight months of 2013, and lastly the growth
forecasts for the end of year fell to 7.8% and are now at 7.0 percent (falling
slope). Domestic consumption in China is about 36% of GDP while in the United
States is 70% of GDP. And this despite the huge injections of credit from the
Chinese government to its economy. All this, in advance, shows the deformation
of the Chinese economy´s growth.
In
conclusion, from what has been explained up to now about the inter imperialist
competition, the monopolies of Yankee imperialism keeps its dominance over its
competitor, the monopolies from other imperialist countries in Asia or Europe.
The Social imperialist Chinese companies are still far behind, as the
aforementioned study notes:
"In
general, companies from China show significant growth but are still well below
the most powerful transnational corporations, particularly in the studied
activities ".
In this
regard, when we study the penetration of imperialist capital in other
imperialist countries or in oppressed countries, we must always keep in mind
what Lenin teaches us: "we must devote
special attention" to the holding system", according to which
"the parent company " exercises dominion of the
"subsidiaries" that it´s enough to own "40% of shares" of
the "parent company" to exercise control over it and over its
subsidiaries, because the scattered actions only serve to "reinforce the
power of the financial oligarchy."(32)
In the struggle among the imperialist monopolies over the division of
the world, the spoils are the Third World (main contradiction), a number of
associations are woven to accommodate each other and dominate the world and
consequently with this to dived it among the imperialist countries (third
contradiction).
Continuing
on, in the aforementioned study, though it lacks to disaggregate the "European
investors", there is important data on how the fight among the imperialist
monopolies is given, as to one aspect of this "holding system." The
study reads:
"To
observe the evolution of these processes, we selected 94 companies operating in
the fourteen activities with greater weight within five hundred largest
companies in the world. Taking as a criterion the revenues and profits
performance, we considered these 94 companies as global leaders. Thanks to the
"One Banker” database of the consulting firm Thomson, we determined the
holders of these leading companies, for the year 2008, were 5,231 stoke holders
who report owning shares for a total value of 3.8 billion. The first feature
that jumps out is the high concentration that is achieved when reducing the
stoke holders to those with investments of 1000 million dollars or more; 332
actors handled 3.4 billion, ie 90% of the total. With respect to the
international hierarchy, we note that more investors are based in the United
States. There are 170 firms that manage investments for 1.8 billion and
represent 48% of the total. The 114 investors from Europe hold shares of the
leading companies for $ 1.1 billion, representing 29.4% of the total. In this
group the investors based in the UK
stand out and handle 10.5% of the total value of the shares. The shares
of Asia are mainly explained by the shareholding of the Chinese
telecommunications giant, China Mobile, whose capital is held by the China
Mobile Hong Kong (BVI) Limited holding, luckily this investment does not affect
the internationalization of property. From Japan there are twenty investors who
own shares worth 116,000 million, representing 3% of total reported value.
This first
approach reveals that capitalism, seen from the perspective of the ownership of
the giant corporations, is strongly regionalized. The capital of the companies
from a region is in the hands of financiers and shares buyers in the same
region. Certainly there is the phenomenon of internationalization of the
property, but it has a marginal character, without a decisive foreign presence,
at least in respect to major corporations ". (33)When it says that "it is strongly regionalized", like is clear from the quote as a whole, it cannot be hidden that most of these "giant corporations" are Yankee imperialist capital, then British, Japanese, etc. From other sources we have the following data:
The largest
monopolistic firms by market value:
Here we are
referring to the market price of the monopoly companies in the stock market. In
September 2009, in the list of the top ten there were only three from US. American-Exxon Mobil, Microsoft and Walmart,
the list was dominated by the giant Chinese state enterprises. "Today,
nine out of the ten most valued companies are American. The country had not
dominated for a decade. If we take a look at the first 50 firms, the American
part is much lower. But that part easily passes 50% and has recently begun to
grow (...) On September 2 Verizon, a telecommunications New York based company,
said it wanted to take complete control of the wireless branch (...) On the
following days, Microsoft announced it was purchasing the struggling industry
Nokia phone. Which had been, in the previous thirteen years, the 16th largest
firm worldwide. Now America dominates the wireless industry (...) more than
half of the firms located in the 11th to the 30th place in ranking are
American. " (34)
Then, the
development of the struggle among the monopolies and therefore, among a handful
of imperialist countries shows that US imperialism maintains its hegemony and
completely denies all these thesis of imperialism´s beautifiers, of the
"dependency relationships among countries", they try to hide the true
nature of these relations, ie domination and violence and present a distorted
reality of the current development of imperialism in its period of collapse and
sweeping away.
We have to
begin to analyze this Chinese development, which is so highly praised, so then
we can relate and understand it framed by the entire global economy and show
what is in fact happening. But we cannot
get clarity about the global economy if we do not see the current reality of
imperialist exploitation of the oppressed countries, the vast majority of which
are semi-feudal and semi-colonial countries where bureaucratic capitalism
develops, that’s why we deal with this first.
We can not
be misled, the reactionary and opportunistic academics, as their imperialist
bosses, mix different concepts to confuse. As happens with the BRICS, these are
countries that have nothing in common among them, rather than being exporters
of raw materials or maquila goods. Under this heading, it is intended to put
under a common denominator oppressed countries with a nuclear superpower,
Russia; deliberately confusing the concepts of economic growth and economic
development; they mixed imperialist countries that show that are behind in
their internal economic process, such as Russia and China, with semi-feudal and
semi-colonial countries where bureaucratic capitalism develops, such as Brazil,
India or South Africa.
HOW THAT
CHINA IS AN EMERGING COUNTRY?
That is a
name set by investment banks to classify countries according to the
opportunities of countries for financial speculation. That, therefore, tries to
deny the division of the world between oppressors and oppressed countries and
China as an imperialist country belongs to the first named countries. That also
does not take into account the particularity of this imperialist country;
namely that China was a socialist country that after the counterrevolutionary
coup of Teng in 1976, undertook the capitalist road (restoration).
With the counterrevolutionary revisionist blow
came the change of the proletarian leadership by the revisionist leadership,
the party line changed and so it became a fascist party, the dictatorship of
the proletariat become a bourgeois dictatorship and a fascist government was
established, and the PLA and people's war to defend the peoples and proletariat
were abandoned, and the army changed character and a bourgeois military line
was imposed. All of this to serve two objectives: internally, the restoration
of capitalism and the total dismantling of socialism and deletion of all the
conquests of the proletariat and the people; change to a capitalist China in
the time of dominance of monopolies and finance capital, in this case to a socialimperialist
China; and, externally, from the beginning the revisionist, with Teng at the
head, set out to turn China into an imperialist superpower in the century to
come. This is their claim and tendency, i.e. the revisionist dream.
THE FINAL
BANKRUPTCY OF CHINESE REVISIONIST IS INEVITABLE
But, we
have to consider the opposite trends, as Lenin teaches us. What history has
seen so far, in the ingoing era of imperialism and proletarian revolution, is
that revisionism always gets bankrupt, regardless of what they do, that´s how
they will end up and that´s how these new "emperors" would end.
The old
revisionism sank with the First World War; the second revisionism of Khrushchev
to Gorbachev sank without world war, the revisionist USSR imploded. The Chinese
revisionists are in serious trouble, the struggle within, among groups and
cliques, is sordid but sharp, and what is central to the revolution, is that
the oppression of the bourgeoisie over the proletariat in China is becoming
more and more unbearable, 1% of the big bourgeoisie owns 60% of the national
wealth, while 750 million people live in the countryside, most in poverty and
backwardness, with the consequence of the of the internal migration problem,
there are 260 million footloose workers, that although subjected to the vilest
super exploitation produce a super surplus value for the large bourgeois
revisionists, workers that are, for that reason, a great potential for the
revolutionary struggle of the proletariat to do the counter-restoration. These
260 million workers are only one part, the poorest, most deep and profound
class, of that immense mass that makes up the proletariat in China. See that
since the fall of the Manchu empire no one has been able to govern China
quietly for long. All of this leads the
proletariat in China to reconstitute their party and carry forward the
counter-restoration through people's war.
Also, we need to keep in mind that the
restoration was fostered by imperialism and, shortly after the anti-communist
coup, US imperialism agreed with the Chinese revisionists, to promote their
exports to the United States with the implementation of the most favored
country clause. This is a special protection for Chinese goods entering the US
market, passed by Congress as an amendment to the trade law, which is renewed
annually; in exchange for special treatment to Yankee companies (Yankee
transnationals) to partner with Chinese enterprises in Joint Ventures). All of
this within the process of dismantling socialism and the restoration of
capitalism, under the revisionist Teng Xiao-Ping´s damn slogan of the
"four modernizations"(35).
The Joint Ventures were the most significant
"participation" method of the imperialist capital in China since
1977. Another was the establishment of the "special economic zones"
such as Shenchen, Chunchai, Shant-ou and Hsiamen. In these, the establishment
of imperialist capital companies was allowed. "They have emerged as a
result of the policy followed by Deng Xiao-ping, of reform and opening". In these "zones", the Chinese
revisionists put at imperialist capital ´s service the corresponding
infrastructure and cheap and disciplined labor, where the imperialist
enterprises should make modern factories. These "zones" would also
serve as a bridge to Hong Kong, Macao and Taiwan.
While
thousands of Chinese were sent to study in the imperialist countries, mainly
the United States, the agriculture was de-collectivized to increase cheap
labor; causing the exodus from the countryside, as we have already mentioned,
currently, as a consequence of which, to mention just a symptom, there are more
than 260 million "footloose" workers in the cities, migrants from the
countryside, subject to the worst operating conditions. "With the
establishment of the 'socialist market economy', industrial production, under a
central plan, fell to a minimum; in 1995, it comprised only 10% of what it used
to be ". (36)
Remember
that it was Teng who proposed his "Theory of the Three Worlds" to lag
behind one of the two superpowers. According the bourgeois commentators, the
Chinese revisionists with the sinister Teng at the helm, learn the lessons from
the problems of the restoration of capitalism in the USSR that followed a
slower "privatization" path and since 1998, the capitalist management
of the state companies was declared as a model, the issue of shares and private
enterprise as good at the service of socialism was authorized. The Chinese
revisionists boosted since the beginning what has been called "economic
liberalization" under the slogan of "the four liberalizations"
for which they have to open the country to imperialist capital. While at the
same time, subjecting the proletariat to the hardest fascist oppression.
But the
Chinese revisionists, despite their convergence with the US imperialists, don´t
have the same interests since they are rivals; the interest of the Chinese
revisionists, always has been to finish with socialism and the proletarian
dictatorship, fast forward on the path of capitalism, become a superpower to
fight for world hegemony; and the interests of US imperialism, has always been
to end the proletarian dictatorship and socialism for then conquering this huge
potential market, while continuing their usual plan of the division of China,
as history shows.
On these
notes, we have first seen the economic base of the struggle among the
imperialists, but previously, in another part of these notes, we have gone over
the Marxist-Leninist- Maoist position and viewpoint on bureaucratic capitalism,
to understand the development of imperialism and its worldwide FDI, especially
in Asia, ie the economic base of the main contradiction. Then we must relate
the growth of FDI in China and the development of the external sector of the
economy as a "global maquila" or "global export platform".
Above all, We have to see the specific nature of the imperialist capital
exports of China, its difference from the capital exports of other imperialist
countries, that has to do with the fact that it is an imperialist country of
late development, product of the destruction of a more advanced economy, the
socialist economy.
Is not the
case of Japan and Germany in the late nineteenth and early twentieth century,
that because of its later development,
were a young capitalism with respect to France and England (old
capitalism), hence they exceeded them before the first World War, as will be
shown here, crushing what the ROL says.
In turn,
the imperialist countries see China as a new market opening, therefore, through
their investments, the monopolies and imperialist countries seek to win the
competition to take the best positions at the site of the development of this
“potential gigantic market". Potential market, because it still has no
effective demand comparable to the size of its population: because of low
incomes and restrained consumption (high savings rate). This becomes a negative
phenomenon because it is subtracted from the internal reproduction process. In
addition, the so-called national saving has had a large increase in the last
two decades, but instead of using it to develop the economy and life of the masses,
ie in the productive and households consumption, the revisionists thugs
(capitrostes, translation note) in the state and economy power use it for
financial speculation of all kinds, such as buying US Treasuries bonds.
The
bourgeois economists find that China cannot invest this great mass of money at
home because of the backwardness of the economy doesn´t have a place for it.
The truth is that they are not going to invest that abundant capital in the
development of the country and the welfare of the masses, but it will be
exported looking for super-profits and buying US Treasuries bonds to keep the
relationship dollar-Remin in benefit of their exports, to ensure foreign
investment and because there isn´t a free Remin convertibility.
Such was
confirmed by what was addressed on this regard on the Third Plenum of the CC
(the XVIII Congress of the Chinese revisionist party) and the resulting new
plans of the Chinese government to "stop the exportation model" to
look for the expansion of domestic consumption. It is necessary to note that
after the Teng´s anti-communist coup, China began the "reforms of the
market economy" against the socialist planned economy, "reforms"
that were formalized in the 1998 Plenum of the CC, which have developed over a
long period and " firmly took place in the early 90s; Deng Xiaoping's
" trip to the south "of is a noticeable mark in the economic reforms
in China. Such an event took place in 1992. " (37)
The
revisionist party new leader, just installed last year, traveled to the US and
the countries of the EU, for what reason? To reassure the other imperialists
that in the Chinese economic policy there won´t suffer fundamental changes. As
we have said, by class nature the Chinese social imperialists are not on behalf
of investing the large earned profits in the development of agriculture, in the
balanced development of the country and in meeting the masses´ needs, on the
contrary, each time they dismiss more people from the countryside to the cities
through economic and extra economic means, to concentrate large armies of cheap
labor for the maquila work of the imperialist capital; as all other imperialist
they export their capital to more profitable locations for speculative
imperialist super profits overseas. Within the approved plans at the Third
Plenum of the Chinese revisionists party, there are measures aimed at the
expropriation of peasant lands in favor of state monopolies or of native or
foreign individuals to "empty the field." For all this, we said in
advance that this revisionist meeting sought to reconcile the interests of the
big bureaucratic bourgeoisie with those of the faction of the big bourgeoisie
that has seen increase its economic power with the past "exportation
boom" that has lasted for more than two decades and together with
representatives of foreign imperialist capital propagate the need for
"greater openness of the economy." So the struggle between the two
factions of the big bourgeoisie will continue and the struggle of the
proletariat and the peasantry will increase by taking the path of proletarian
counter-restoration, which passes through the reconstitution of the Party to
follow the Chairman Mao´s slogan ¡Back to the Ching kahn mountains!, ie the
path of people's war to counter-restore.
Where this
did led them to? This led China to its dependence on the world market and its
crisis, the current "exportation model" of assembled products and raw
materials -and in turn importer of intermediate products and raw materials,
which has meant big profits for a handful of the large native and foreign bourgeoisie
and has brought great calamities for the vast majority of the proletariat and
people and large deformation of the social-imperialist country. It’s similar to
the social imperialist Soviet model that since the 60s became dependent on oil
and gas exports and then definitely sank.
The global crisis that began in 2008 with a
prolonged recession in many parts of the world and low growth in others, which
continues today, has shown "the limits of that model" and "the
impossibility to lead a sustained growth ", as attested by neoKeynesian
bourgeois economists , in a purported neo-Keynesians manifesto, that prescribe
to save the imperialist world economy the combination of the free market with
the expansive state intervention in the economy (39).
For
everyone it is clear that this "model" is already worn out. So the
Chinese revisionists are forced to "reforms" that are nothing more
than to "complete" the model followed up to the date. That is, what
they want with the current "reforms" that are being launched is a
scape. Continuing with the Wall Street Journal note we get more clarify about
it, it adds: "While the plan for Shanghai´s FTZ (Free Trade Zone, our
note) remains vague, it essentially combines four existing similar areas in the
city and adheres some services liberalization (...) the old gradual regional
experimentation program of 80 is little adapted to today challenges. A strong reform agenda is what is needed
now."
This means
that for the US´ finance capital media (WSJ), the situation in China is at
least difficult, they cannot go halfway. They want the revisionists to do more
"liberalization" of the economy, but that would be to give up all to
the other faction of the big bourgeoisie and a potential implosion similar to
that of the former Soviet Union.
Therefore
it is necessary to study China's exports, make out its anatomy, that’s why to
save ourselves from long comments, we underlined in the presented quotations
the most important aspects that have to do with the global economic role of
China, ie the role playing as an imperialist country within the imperialist
economy, which explains more than a thousand words the "Chinese economic
miracle" and why China acts as it does on the world stage.
...........................
(To Be
Continued)
(7) Raúl Ornellas*, THE CAPITALIST CRISIS, END
OF THE US HEGEMONY? A STUDY FROM THE COMPETITION BETWEEN TNCs *This work is
part of the project of investigation PAPIIT “TNCs and natural resources in
Latin America” (IN-306609-3), page 209 and ss.
(8) Lenin, op. Cit., This process says:
"The finance capital has created the epoch of monopolies. And monopolies
introduce everywhere monopolistic principles: the utilization of “connection”
for profitable transactions takes the place of competition on the open market
leads.(...) The export of capital becomes a means to export of goods (...) the
monopolist capitalist associations, cartels, syndicates and Trust first divided
the home market among themselves (...) but the domestic market, under capitalism,
is inevitably bound up with the foreign market. Capitalism long ego created a
world market. As the exports of capital increased and as the foreign and
colonial connections and 'spheres of influence' of the big monopolistic
associations are expanded in all ways, things “naturally” gravitated towards an
international agreements among association, and towards the formation of
international cartels. This is a new stage of world concentration of capital
and production "(...)" Some bourgeois writers (now joined by K.
Kautsky (...) have expressed the opinion that international cartels, being one
of the striking expressions of the internationalization of capital, give the
hope of maintaining peace among peoples. theoretically, this opinion is
absolutely absurd, while in practice it is sophistry a dishonorable defense of
the worst opportunism. International cartels show to what point capitalist
monopolies have developed and the object of the struggle between the various
capitalist associations This last circumstance is the most important; it alone
shows us the historic-economic meaning of what is taking place, for the form of
the struggle may and do constantly chance (...) but the substance of the
struggle, its class content, positively cannot change, while in classes exist
(...) the epoch of latest stage of capitalism shows us that certain
relationships among capitalist associations grow up, based on the economic
division of the world: while parallel to and in connection with it, certain
relationships grow up between political associations, between the states, on
the basis of the territorial division of the world, the struggle for “spheres
of influence"
(9) Raul Ornelas, ob. Cit.
(10) Kurt Hübner, Der
Globalisierungskomplex, Research, Berlin, editorial Sigma, 1998.
(11)Raul Ornelas,
ob. Cit., P. 211 et seq.
(12)The Wall Street Journal, December 12, 2013,
europe edition, page 28.
(13)The Economist, 27TH-21ST september
2013, p. 22.
(14)Michel Husson, “UN PUR CAPITALISMO” ,
2008, Edition Page deux, Lausanne Suiza.
(15)Ornellas, ob. cit., p. 214 et seq.
(16)Ornellas, ob. cit., p. 217.
(17)
Günter Nooke, commissioned by German Chancellor staff at the Ministry
for Economic Cooperation and Development, "We should not be innocent,
Africa / The rules of the free market do not determine the access to raw
materials, but a game of interests- Germany needs a clear strategy to be
credible and successful in securing its industrial interests”. In Wirtschafttswoche 16.09.2013, p.
31.
(18) Lenin, op. Cit.
(19) Ornellas, ob. Cit., Pág.217.
(20)The Wall Street Journal, Hair of the
dog`Cure for Banks?, september 20-22, 2013, pág. 4.
(21)
Ornellas, ob. cit., p. 217.
(22)Ornellas, ob. Cit., P. 222.
(23)Ornellas, ob. cit., p. 222 et seq
(24)
Ministry of Commerce of Canada, Global Value Chains: Impacts and Implications,
Canada Trade Policy Research 2011.
(25) Ministry of Commerce of Canada, op. cit.
(26) Ornellas, ob.
cit., p. 225
(27)Wirtschafts
Woche, N.38, 16.09.2013.
(28) Frankfurter Allgemeine Zeitung, 26.09.2013.
(29)AUDI, Standlers
Samba-Parti, in the same number of Wirtschafts Woche cited above, p. 9.
(30)Wirtschafts
Woche, 38, 16.9.2013, p a05, KfW / Real Bond Bet on Brazil.
(31) Ornellas, ob.
cit., p. 225 et seq.
(32) Lenin, op. cit : " Paramount
importance attaches to the "holding system"(…) The German economist,
Heymann, probably the first to call attention to this matter, describes the
essence of it in this way:
"The
head of the concern controls the principal company (literally: the "mother
company"); the latter reigns over the subsidiary companies ("daughter
companies") which in their turn control still other subsidiaries
("grandchild companies"), etc. In this way, it is possible with a
comparatively small capital to dominate immense spheres of production. Indeed,
if holding 50 per cent of the capital is always sufficient to control a
company, the head of the concern needs only one million to control eight
million in the second subsidiaries. And if this 'interlocking' is extended, it
is possible with one million to control sixteen million, thirty-two million,
etc." (…) divide a single business into several parts by setting up
'daughter companies' — or by annexing them. The advantages of this system for
various purposes— legal and illegal — are so evident that big companies which
do not employ it are quite the exception. (…) the "democratization of
capital", the strengthening of the role and significance of small scale
production, etc., is, in fact, one of the ways of increasing the power of the
financial oligarchy. (…) But the "holding system" not only serves
enormously to increase the power of the monopolists; it also enables them to
resort with impunity to all sorts of shady and dirty tricks to cheat the
public, because formally the directors of the "mother company" are
not legally responsible for the "daughter company", which is supposed
to be "independent",and through the medium of which they can
"pull off" anything. (…)A monopoly, once it is formed and controls
thousands of millions, inevitably penetrates into every sphere of public life,
regardless of the form of government and all other "details". (…)The
supremacy of finance capital over all other forms of capital means the
predominance of the rentier and of the financial oligarchy; it means that a
small number of financially "powerful" states stand out among all the
rest. (…) It is particularly important to examine the part which the export of
capital plays in creating the international network of dependence on and
connections of finance capital”.
(33)Ornellas, ob. cit., page 229 et
seq.
(34)The Economist, 21 september 27TH ST-2013,
p. 21.
(35)China Today, January 1979, p. 79.
(36) Heilmann, S.,
Die Partei Chinas Kommunistische vor dem Zusammenbruch? (The Communist Party of China to bankruptcy?),
Bericht des BioSt Nr. 58/1995.
(37)The Wall Street Journal, October 1, 2013,
p. 28.
(38)WSJ cited above.
(39) "Act now! The Global Manifesto for
the Salvation of the Economy "by Flassbeck, Davidson, Galbraith and
others, Editorial Westend, Frankfurt /