Is China Socialist in Name Only?
The Demise of the Danwei, The Demise of a Chinese Socialism
This article raises the question of whether or not it is genuine to call China a socialist State given the gradual demise of the 'danwei' in favor of private enterprises.
As of 2007, the China Daily reports that there are more billionaires in China than anywhere else in the world except the United States. This development has come alongside the dismantling of key socialist institutions, most importantly that of the "danwei" system. The rise to prominence of Chinese capitalism, and the decline of socialist service provision begs a question: is China socialist in name only?
Socialism is defined by equality for all, and particularly the provision of universal and free social services. In China, the provision of services was traditionally done under the aegis of the Chinese state, through an entity called the the danwei. Under the socialist system, any individual in a danwei, commonly called a "work-unit," would recieve benefits from their work unit. Jobs in danweis were commonly refered to as "iron rice bowls" because of the job-security and complete provision of social services. The danwei was initially created by the Communist government prior to reforms, and has acted until recently as a remnant of industrial socialism within an increasingly market-oriented economy.
Since at least 2003, observers have argued that the iron rice bowl is broken. The danwei system has given way to the rise of private sector employment, with private insurance schemes becoming the norm, replacing what were previously State provided social services. Documented by Chun Lin in The Transformation of Chinese Socialism the author writes that "the reform... has been driven by the smashing of the 'iron rice bowl'." Chun argues that the demise of the 'iron rice bowl' has declared in so many respects the end of the socialist life-style that bred a specific kind of Chinese worker and work-community. Psychologically and philosophically, Chun argues that the smashing of the "iron rice bowl" has profoundly affected the outlook of millions of Chinese workers.
Though the danwei remains in some capacity, and more in some sectors than in others, Chinese workers now feel a necessity to look beyond the work unit for help. The reality of paying for social services is now a general feature of life for almost every Chinese worker. Not only are the institutions of Chinese socialism being dismantled in favour of the privatization of small state firms and the 'rationalization' of big ones, but a subsequent dismantling of socialist ideology is taking place.
Capitalism is being assumed by a large section of Chinese as more and more are making a life for themselves within an increasingly market-based economy. As the Chinese state embraces more and more vigourously a reformist stance of opening-up, the social make-up and associated outlook is becoming less socialist, and more capitalist. The astounding number of Chinese billionaires is but one example, though it is undoubtedly a telling one. While remnants of socialist institutions and perspectives still exist in China, it is increasingly becoming socialist in name only.
