“China is now a country without debts. This great achievement illustrates that China’s socialist economy is daily growing in strength and its financial position is ever more consolidated”- Tsai Cheng

“Adhering to the consistent teachings of our great leader Chairman Mao, China obtains its funds for socialist construction mainly through its socialist economy’s internal accumulation. The income from state-owned enterprises makes up more than 90 percent of the country’s total revenue. In the course of building the country through self-reliance China in a certain period issued national bonds in order to utilize the idle money in the hands of the people to expand socialist reproduction. This was a supplementary measure used by China at that time to raise capital funds. From 1950 to 1958 China floated six national bond issueds with a total value of 3,840 million yuan. Together with 980 million yuan payable in interest, the indebetedness totalled 4,820 million yuan and was paid off by the end of 1968.

In the early days of the Chinese People’s Republic, particularly during the War to Resist U.S. Aggression and Aid Korea, the Soviet Union, which was then led by Stalin, extended some loans to China, the principal and interest of which totalled 1,406 million new rubles. China consistently discharged its obligation by repaying these foreign debts on time and, moreover, redeemed the last of them in 1965 before they were due.

China is now a country without debts. This great achievement illustrates that China’s socialist economy is daily growing in strength and its financial position is ever more consolidated. It fully proves that Chairman Mao’s principle of maintaing independence and keeping the initiative in our own hands and relying on our own efforts is the only correct principle for building socialism. It also eloquently demonstrates that a country such as ours, so long as it holds high the great red banner of Mao Tsetung Thought, can with its own efforts gradually change its look of poverty and backwardness and step by step build itself into a powerful socialist state.

Guided by invinciple Mao Tsetung Thought the revolutionary people of all nationalities in China, through arduous efforts in the past twenty years, have brought about earth-shaking changes in China’s national economy. Compared with the early days of the People’s Republic of China, increases ranging from one hundred to several hundred per cent have been registered in the production of grain, cotton, oilseeds and other agricultural crops and in the number of hogs, sheep, goats and other animals. The total output value of the country’s industrial production has gone up more than tenfold. China has set up new branches of industry such as aircraft, motor vehicles, tractors, electronics, petroleum and chemicals. An independent, fairly comprehensive, modern industrial system is taking shape in China. The country’s scientific research, education and health work have made considerable advances. China successfully exploaded its first atom bomb in 1964 and set off a new hydrogen bomb in 1968. On the basis of increased production, the material and cultural life of the Chinese people has improved enormously, markets are thriving and prices are stable.

While expanding its national economy rapidly, China, in the spirit of proletarian internationalism, has done what is within its power to actively support the revolutionary people of the world in their struggles and to assist some newly independent Asian and African countries to develop their economy and apply the principle of regeneration through their own efforts. It is precisely on the basis of the speedy development of our country’s socialist economy that our financial and monetary position is becoming more and more consolidated. Thus not only was the need for funds for large-scale socialist construction met, but all its home and foreign debts were paid off in a short time and China has now become a socialist country without internal or external debts.”

(Source: http://www.bannedthought.net/China/MaoEra/Socialism/China’sRenminbi-StableCurrency-1969.pdf)

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