In this second part of Jeppe Druedahl's contribution to the discussion on China, he explains how initially the Chinese bureaucracy, after the death of Mao, introduced market methods as a means of stimulating production within a planned economy. However, over time the capitalist methods began to dominate and the relation between the plan and the market were overturned. Quantity was transformed into quality, and capitalism has come to dominate. [part one]

Does the development of China on a capitalist basis deny the theory of permanent revolution? Does it mean that capitalism on a world scale has a new lease of life? What was China under Mao? In this first part of a two part article, which we publish as a contribution to the discussion, Jeppe Druedahl looks at these and other questions and draws lessons from the development of the Soviet Union after the revolution and under the Stalinist bureaucracy.

The split between the US generals and politicians could not have come at a worse time. The sacking of McChrystal just at the beginning of the fighting season could disrupt the entire counter-insurgency campaign, which was already going badly. The fact is that a military victory is out of the question. The greatest military power in the world is now overstretched in the region.

The Summer 2010 edition of the Asian Marxist Review is soon coming out. Here we provide the Editorial, which makes a comment on the crisis affecting all Asian countries to one degree or another.

On 5^th July 1977 general Zia Ul Haq overthrew the government of Zulfiqar Ali Bhutto in a military coup. He later proceeded to have Bhutto hanged. This year that dark day in 1977 was marked by a day of remembrance in Rawalpindi, where the speakers emphasised the need to carry out the founding socialist programme of the PPP.

A huge rally and conference was organised by the Jammu Kashmir National Student Federation (JKNSF) on June 24. Lal Khan was one of the main speakers, stressing the point that genuine self-determination for the Kashmiri people can only be achieved as part of a socialist federation of the whole of the South Asian subcontinent.

Over the weekend the Punjab People’s Student Federation (PSF) held a convention under the title “Bhuttoism—Socialism”, officially organised to mark the 57^th birthday anniversary of Benazir Bhutto. The convention, representing a large number of campuses across the Punjab, elected Zohaib Butt, a Marxist and supporter of The Struggle, as its President.

The workers at the Foshan Honda plant in China won a 35% wage increase after taking strike action which started on May 17. The agreement, which was reached on June 4, represents an average monthly pay rise of 500 yuan. A regular front-line worker whose wages were 1544 yuan before, will see his wages increased to 2044 yuan after the pay rise - a raise of 32.4%. The intern employees, who represent a large part of the workforce and have played a key role in the strike but receive much lower wages, will get a raise of 634 yuan from the current rate of 900 - a raise of more than 70%.

On Tuesday and Wednesday, June 1 and 2, most workers returned to work at the Honda plant in Foshan, China, after strike action which had started on May 17. As we reported earlier, the workers were fighting for substantial wage increases.

A high profile two-week long strike by 1900 workers at the Honda Motors transmission plant in China has paralysed production at Honda’s four plants in the country.

265 Workers of Merk Marker factory in Quetta who were sacked last year are still struggling for their reinstatement and call for solidarity from Merk Marker workers in other countries.

Bangkok is in flames as the counterrevolutionary violence in Thailand reaches a bloody climax. The long-awaited assault by the Thai army has already taken place, and will not cease until every trace of the protest has been wiped out. No-one can be sure of the number of casualties, but the final figure will certainly be more than what the authorities have admitted to so far. It seems that some Red Shirts have responded by setting fire to banks, shopping malls and other buildings in the city, and there are reports that protests and violence is erupting in other parts of the city.

On May 7 a protest broke out in Malakand over water and electricity shortages. The Army was brought in and was preparing a brutal clampdown. In the face of the wrath of the masses, led by a Marxist, Shakeel Khan, who was temporarily arrested, they had to back off and give in to all the demands of the protestors.