Abstract

When the Chinese Communist Party gained control of the entire country in 1949, it faced a country that had been long plagued by civil and foreign wars, [and] was politically disintegrated and economically in shambles. During the civil war, the corrupt Guomindang regime brought the country to the brink of destruction and ruins rarely seen in China's history. In terms of economic formation, the Four Big Families [Jiang, Song, Chen, and Kong] of the Guomindang represented the interests of the major bureaucrat-comprador bourgeoisie and seriously hindered the growth of the national bourgeoisie. Right after liberation, industry accounted for less than 10 percent of the gross national product, while the remaining 90 percent was composed of either an enormous small peasant economy or a feudal-patriarchal economy. In the old liberated areas in the North, the land reform led by the Chinese Communist Party freed the peasants from the feudal-patriarchal economy and enabled the emergence of groups of small private owners. However, in the newly liberated areas in the South, land reform had not yet been carried out. Therefore, whether in the urban or rural areas, complete transformations of a capitalist nature must take place to clear the way for the development of the capitalist mode of production. The period of recovery of the national economy during the three years after the founding of the People's Republic of China happened to be the same period when capitalism was fully developing. As described by Liu Shaoqi, China during that time was in an early stage of capitalist development. All reform measures of a capitalist nature had been successful, and indeed greatly helped with the recovery of the national economy. The Movement to Suppress Counterrevolutionaries and the Movement to Eliminate Counterrevolutionaries were both highly necessary and correct in wiping out the destructive elements of the surviving forces of the Guomindang and consolidating the political basis of the new society. The divisive activities of Gao Gang and Rao Shushi1 did not affect the general historical situation