Policy Research Of CPC On Foreign-funded Enterprises In China (1946-1956)

That against the imperialist aggression of the Chinese economy and banning their privileges in China is one of the basic tasks of the national-democratic revolution led by Communist Party of China. However, after the founding of New China, the Communist Party of China in dealing with this complex and difficult problems of foreign-funded enterprises in China are not specific just staying in the revolutionary slogan level of "hit imperialism", but considering the situation, to explore specific policies and measures from reality.Before the liberation war, the understanding of Chinese Communist Party towards foreign-funded enterprises still remain in the basic level of theoretical understanding. Early Chinese Communists were against foreign capital and advocated the confiscation of foreign companies in China. During the Agrarian Revolution, the understanding of CCP towards foreign-funded enterprises in China gradually shift from the confiscation to utilization. The reason is the impact of the Comintern and the deepening understanding of CCP towards the Chinese revolution. Anti-Japanese War, the CCP has proposed the establishment of a broad united front, which means not only actively to seek foreign economic aid, to allow and encourage foreign enterprises to exist and develop, but also to put forward all sorts of ideas for the utilization of foreign capital after the war.After the liberation war broke out in 1946, with the constantly liberation of the city, the Chinese Communists began to face foreign companies in China more directly during the process of taking over the cities. Based on the recovery and stability of urban economic order, the CCP carry out to protect the ownership of foreign companies in China and to allow them to normally operate in compliance with government regulations. After the founding of New China, Mao Zedong established the "one-sided" foreign policy to mainly develop external economic exchanges and cooperation with the Soviet Union and other socialist countries of Eastern Europe. During the urban economy work, after firmly cancelling all privileges owned by foreign companies in China, Chinese Communist Party carried out the policy of supervision and utilization to make theforeign companies in China as a purely commercial organization to lawfully operate in strict compliance with the Chinese government’s decree. Next, the purpose of supervision is to make the foreign companies in China to comply the people’s government decree and stipulate the business scope, and utilization is the use of manpower, financial capability and overseas relationship in foreign-funded enterprises in China to promote the recovery and development of the national economy.The outbreak of the Korean War significantly changed the international environment China faced. The relationship between the new Chinese and Western capitalist countries shifted from the tendency of relaxation pre-war to hostilities. Changes in the international environment led serious block to the external economy intercourse of the CPC. The position and role of American-England-France-main foreign-funded enterprises changed. The possibility to use foreign investment was limited to socialist countries such as the Soviet and Eastern Europe. Meanwhile, the new Chinese’s involvement in the Korean War also made the national defense pressure increase. The priority to develop heavy industry is no longer just an economic issue, but also to the safety of the country’s survival. On this occasion, the CCP has accelerated to choose the planned economy represented by the Soviet to focus resources allocation and social model priority developing heavy industry. Under highly centralized planned economy model, the living space of foreign-funded enterprises in China gradually lost. That is to say, the outburst of Korean War led to great changes in the domestic and international situation and caused China’s foreign economic relations seriously blocked. So the policy of utilization of western countries enterprise in China halted.After the socialist transformation began in 1953, the state has definitely made the elimination of capitalist private ownership as social development goals. A large number of foreign-funded enterprises in China declined. The Communist Party in practice explored the way of transfer to wind-up foreign-funded enterprises in China and by means of commercial negotiation to complete the cleanup of the assets and liabilities of foreign enterprise in China and the placement of employees. Socialist transformation nearly completed by the end of 1956 and foreign-funded enterprises in China had basically been cleared. In fact, after the completion of the socialist transformation, foreign-funded enterprises in China have lost their living space. In theory, after the socialist transformation, the implementation of the single socialist public ownership and the exploitation-eliminated Soviet model has no space to accommodate foreign reconstruction, while actually highly centralized planned economic system can not be compatible with the foreign-funded enterprise.Before and after the founding of New China, according to changes in domestic and international situation, the China Communist Party in gradually explore in practice to form a series of policies of supervision、utilization and cleaning up foreign companies in China. In the process of exploring policies, errors and rights intertwined, forming a historical experience and lessons which is the important content in localization of Marxism in China. Review and Reflection on this issue is the proper meaning of the title by exploring the road of socialism with Chinese characteristics, and an indispensable element of the theoretical system of socialism with Chinese characteristics which will provide inspiration to further deepen reform and opening up.