Zhao Junjie: The Dilemmas and New Changes of the Contemporary Western Capitalist System
Since the 18th CPC National Congress, Xi Jinping, from the height of grasping the laws governing the development of human history and promoting the progress of human society, has put forward the major judgment of "changes unseen in a century." Under these "changes unseen in a century," what new changes are occurring in contemporary Western capitalism? What kind of institutional dilemmas is it facing? What impact will these have on the global stage? These are questions we must confront and contemplate in the present moment. From multiple dimensions and perspectives—including the layering of political and economic crises in Western capitalism, new changes in class structure, and the impact of the Ukraine crisis on Western society—this article deeply analyzes the new changes and characteristics of contemporary capitalism, investigates its institutional and theoretical dilemmas, and conducts a theoretical inquiry into where capitalism is headed in the 21st century and the historical contest between the "two systems" [1].
I. Contemporary Capitalism Faces Four Major Institutional Dilemmas
The "changes unseen in a century" are currently impacting the political foundations and economic base of contemporary capitalism. Both the "Anglo-Saxon" model and the "Rhine" model, in which Western countries took such pride, have encountered serious development bottlenecks. The emergence of this situation is not merely the result of the cyclical economic crises of capitalism; more importantly, it is a manifestation of deep-seated problems in the contemporary capitalist institutional models established after World War II.
(1) Economic System: Imbalance in the Real Economy and Failure of State Intervention
After World War II, the technological revolution and traditional manufacturing propelled the rapid development of Western capitalism. This gave rise to the Anglo-Saxon model of the UK and US, characterized by laissez-faire capitalism, and the Rhine model of Germany, characterized by a social market economy. Their commonality was an emphasis on the development of the secondary industry, particularly manufacturing. From the 1960s to the 1980s, the United States, Germany, and Japan successively became the world’s largest trade surplus nations and important manufacturing centers. However, the wave of the third technological revolution unleashed by globalization and the greedy, expansionist nature of Western transnational capital led to the decline of traditional Western manufacturing in the 1990s. The United States, in particular, degenerated from a global manufacturing hegemon into a financial monopoly empire. In 2020, the proportions of the primary, secondary, and tertiary industries in the US were 0.84:17.65:81.51, with manufacturing accounting for only 10.84% of GDP. In the same year, the proportions of manufacturing in the GDP of the UK, France, Germany, and Italy were 8.39%, 9.29%, 19.73%, and 14.87%, respectively.
In view of the recession in the Western real economy and the bursting of financial bubbles, Western governments have attempted to increase the intensity of state intervention to revitalize domestic manufacturing through "re-industrialization." Since the Obama administration, the United States has consistently emphasized bringing manufacturing back to its shores, aiming to change the industrial pattern of "R&D in America, manufacturing abroad." The Trump administration went further by introducing a series of preferential policies to subsidize R&D for American enterprises and encourage their return. The European Union has similarly prioritized the "re-industrialization" of European nations, launching a "re-industrialization strategy" in hopes of expanding the proportion of the European real economy. However, things have gone against these wishes. The US government’s forced intervention and political manipulation of the global industrial and supply chain systems have seriously interfered with and destroyed the effective global division of labor. The famous American economist Milton Friedman pointed out incisively: "A federal government that is progressively growing stronger will, sooner or later, destroy the prosperity brought by the free market."
The Trump administration launched the China-US trade war to contain China, but it achieved the opposite of the intended effect. Although the US government introduced sanctions against China and a list of punitive tariffs amounting to hundreds of billions of dollars, it still failed to effectively stop the massive US trade deficit with China. In 2018, China's trade surplus with the US was $323.3 billion; by 2021, it had grown to $396.5 billion, illustrating the high degree of dependence of the US economy on China. Therefore, the US government's idea of achieving a complete "decoupling" of the Chinese and US economies is impractical. The difficulty of implementing "re-industrialization" policies in Western countries is immense. A major reason is that supporting the expansion of domestic monopoly industries and obtaining high monopoly profits has become a consensus among Western governments; it is also the target frantically pursued by capitalists and the military-industrial complex. The disorderly expansion of capital dictates that Western manufacturing will inevitably shift to developing countries. Factors such as low wages and work efficiency in domestic low-end manufacturing, as well as excessive defense of rights by labor unions, often become shackles on the revitalization of domestic manufacturing. The shrinkage of Western manufacturing will not only strike a blow to domestic service industries but also weaken the international competitiveness of Western nations.
(2) Political System: Traditional Establishment Losing Favor and Dysfunctional Democratic Politics
Two-party rotation or coalition governance has been a major feature of the political systems of Great Powers in the West since World War II. Traditional Western establishment parties, whether in terms of national governance or external relations, have long represented mainstream Western politics and public opinion. However, in recent years, under the impact of the deepening crisis of capitalism and the tide of Western populism, the party political system that the West took such pride in has run into major trouble.
First, the ruling foundation of the traditional European establishment has been seriously loosened, with mainstream parties in major countries shrinking and their vote shares and political influence falling across the board. In the French presidential elections of 2017 and 2022, both the Republicans and the Socialist Party suffered crushing defeats. In the 2022 election specifically, the candidates for the Republicans and the Socialist Party received only 4.78% and 1.74% of the vote respectively, setting record lows since the founding of both parties. Emmanuel Macron and Marine Le Pen—two candidates from non-traditional establishment parties—entered the "final round" twice, with Macron, representing centrist interests, ultimately emerging victorious. In the September 2021 German federal elections, the combined vote share of the Social Democratic Party (SPD) and the Christian Democratic Union/Christian Social Union (CDU/CSU) was only 49.8%, the lowest combined share for the two major establishment parties since World War II.
Second, the decline of major European parties, the proliferation of small parties, and the rise of populist parties are changing the traditional power structure of party politics. Faced with the trend of anti-globalization and the dilemmas of the capitalist system, traditional European establishment parties are finding it difficult to prescribe effective remedies for national governance and are retreating from the center of the power stage. In sharp contrast to the decline of the establishment, European populist parties are moving from the periphery to the center of political power, catalyzing a new pattern of multi-party coalition governments. In December 2021, Germany formed a new coalition government consisting of the SPD, the Greens, and the Free Democratic Party (FDP), with the Greens possessing left-wing populist characteristics. In the September 2022 Italian parliamentary elections, a center-right alliance composed of the Brothers of Italy, the League, and Forza Italia won; Giorgia Meloni, leader of the far-right populist Brothers of Italy, has since become the Prime Minister.
Third, the phenomenon of political polarization is highly prominent, and some EU countries are even attempting to use populism to counter European integration. Accompanied by increasingly sharp social contradictions, political polarization has appeared in all Western countries. In the UK, the "executive-legislative struggle" over Brexit judicial procedures between the Conservative government and Parliament once reached a fever pitch. In the US, the struggle between Republican and Democratic partisan interests and their mutual smearing have led to an increasingly divided society. In France, in the first round of the 2022 presidential election, far-left and far-right parties received a combined 56.78% of the vote, highlighting the extreme sentiment of the populace. Central and Eastern European countries, represented by Hungary, Poland, and the Czech Republic, frequently oppose the EU on issues such as refugees, the Russia-Ukraine conflict, the energy crisis, and the EU's Common Foreign and Security Policy, manifesting the interest claims of right-wing populism.
Fourth, the overflow of Western populist thought has led to the dysfunction of Western democratic politics. On one hand, the enthusiasm of voters in Western countries to participate in politics has declined, with turnout rates continuously hitting new lows. In the 2022 French presidential and National Assembly elections, first-round turnout was 65% and 47.51% respectively, both 20-year lows. Turnout in the Italian general election was 63.8%, also a record low in Italian electoral history. Low turnout seriously damages the legitimacy of European democratic systems and causes the development and spread of populist parties. On the other hand, the institutional antagonism of Western political systems and social retaliation [2] constrain each other. Under these conditions, "melodramas" of political polarization, partisan confrontation, and social retaliation are constantly staged, with the social riot at the US Capitol in January 2021 being the best example.
(3) Social System: Dysfunction of the Welfare System and Imbalance of Wealth and Income
In the mid-to-late 19th century, the European Industrial Revolution created two opposing groups: the proletariat and the bourgeoisie. Marx pointed out incisively in Capital: "Capital comes [into the world] dripping from head to foot, from every pore, with blood and dirt." The greed of capital and the brutality of primitive accumulation aroused the anger and resistance of the proletariat. To ease social class contradictions, countries in Northern Europe such as Sweden, during the hundred-plus years of Social Democratic rule, persisted in implementing reformist social welfare policies, emphasizing the improvement of the treatment of the working class and citizens, and creating a "cradle to grave" European social welfare system.
The original intention of the European social welfare system was to ease class contradictions and serve the consolidation of bourgeois rule. This system played a significant role in maintaining social stability and easing class contradictions for a considerable period after World War II. However, this "cradle to grave" social welfare system has in recent years been losing its original social functions and is facing several dilemmas.
Dilemma 1: High welfare has restricted the capital investment in R&D and innovation by European states and enterprises, leading to the shrinkage or relocation of domestic manufacturing. The EU's population accounts for only 5.9% of the world, but its social welfare expenditures account for more than 50% of the global total. This high welfare policy has restricted R&D investment, reducing the international competitiveness of domestic manufacturing. The "2021 EU Industrial R&D Investment Scoreboard" report shows that compared to the US and China, R&D investment by Chinese and US enterprises grew by 18.1% and 9.1% respectively, while that of European enterprises fell by 2.2%.
Dilemma 2: European social welfare systems and subsidy policies have affected the spirit of enterprise and labor enthusiasm of the masses. The persistently high unemployment rate in Europe is somewhat related to its superior social security system. Some unemployed individuals who could work choose to stay home and enjoy welfare subsidies. In France, an unemployed person with children can receive 70% of their pre-unemployment net salary, with benefits lasting up to three years. The middle class is the main body for employment and taxation in Europe, yet high unemployment benefit policies have seriously dampened their enthusiasm for work. Furthermore, the high taxation policy—the pillar of the welfare system—has triggered panic and dissatisfaction among the wealthy, many of whom choose to emigrate and transfer their assets abroad.
Dilemma 3: The proportion of social welfare expenditures in GDP in European countries is continuously rising, making it difficult to alleviate government fiscal deficits over the long term. Although high welfare policies have increased the national happiness index, they have left governments with expenditures exceeding revenues and chronic deficits. In 2020, the fiscal deficits as a percentage of GDP in Spain, Greece, Italy, and France were 11%, 10.1%, 9.6%, and 9.1% respectively. Huge fiscal deficits have created serious government debt; for example, the Italian government's national public debt was expected to be as high as 145.4% of GDP in 2022.
(4) Theoretical System: Fading of Western Values and Failure of Neoliberalism
After the Cold War, Western values were once touted by Western politicians and media as "universal values." Francis Fukuyama's book The End of History even labeled the Western market economy and democratic politics as the only path for the development of human history. In fact, however, Western values are hypocritical and deceptive. When Western countries interfere in the internal affairs of other nations, they often do so under the banners of "democracy, human rights, and anti-dictatorship," yet they remain silent when social unrest occurs in their own countries. Josep Borrell, the EU's High Representative for Foreign Affairs and Security Policy, once publicly stated that the EU is often criticized for playing "double standards," but the EU indeed does not treat all issues with the same standard. He admitted that "the Western withdrawal from Afghanistan was not only a military failure but also a failure of Western values." This is a rare moment of reflection from a high-ranking EU official.
Traditional Western values have faced a powerful challenge from Western populism in recent years. Far-right European populist parties—such as the National Rally in France, the Alternative for Germany (AfD), the Brothers of Italy, and the Sweden Democrats—attain continuous victories in national and European Parliament elections, plunging Western democratic politics and traditional values into a predicament. William Hague, the former British Foreign Secretary, argues that while Western values appear strong and united on the surface, they are encountering internal trouble. He points out that an individual who exhibits contempt for "democratic" systems and outcomes (Trump) remains a potent contender for the presidency; from this, one can discern a serious and widespread loss of direction in the values that once bound Western nations together.
II. Causes and Characteristics of the Systemic Crisis in Western Society
The myriad issues appearing in contemporary Western society demonstrate significant flaws in the capitalist system and its operational mechanisms. Furthermore, behind the phenomena of dysfunction, loss of control, loss of moderation, and loss of luster [3] across various levels of the capitalist system lies a deep-seated systemic crisis.
The current systemic crisis in Western society can be categorized into three types: the first is the economic and financial crisis; the second is the political and ideological crisis; and the third is the social and ecological crisis. Regarding the first, contemporary Western economic crises, "stagflation" crises, and financial and public debt crises are all severe, resulting in market failure, policy-making failure, and runaway inflation. Regarding the second, crises in democratic politics, the traditional establishment, and neoliberalism face unprecedented challenges, leading to democratic failure, the tarnishing of values, institutional operational failure, and the resurgence of far-right populist forces. Regarding the third, the chronic ailments of the Western social welfare system crisis, the ecological crisis, and the population aging crisis have become prominent, resulting in setbacks for social security reform, social fragmentation and confrontation, frequent ecological disasters, and labor shortages.
(1) The disorderly expansion of Western capital and policies of financial liberalization are the primary reasons for the decline of the real economy and the financialization of the economy in the West.
Marxism maintains that all catastrophic consequences caused by the inherent dark side and destructive forces of the capitalist system originate from the logic of greedy and immoderate capital and the dominance of capital. The disorderly expansion and "disastrous-ization" [4] of capital constitute a major factor leading to the systemic and economic dilemmas of Western capitalism.
Since the 1980s, the proliferation of Western neoliberalism, the acceleration of economic globalization, and the expansion of Western multinational corporations have, on one hand, caused a large number of manufacturing sectors to leave their home countries, leading to the hollowing out of medium- and low-end manufacturing. On the other hand, it has led to the financialization and "virtualization" of the real economy, cause a malignant expansion of various financial derivatives trading and stock speculation, which eventually culminated in the 2008 US financial crisis and the 2009 European sovereign debt crisis.
In recent years, the real economies of the US and Europe have been severely damaged, and industrial and supply chains face further risks of fracture. To respond to the economic and fiscal deficit crises, the US government increased the intensity of state intervention, launching multiple rounds of fiscal stimulus plans totaling over $6 trillion. By early October 2022, total US government debt reached $31 trillion, equivalent to 125% of the US GDP in 2021. According to data from the UK Office for National Statistics, by the end of January 2021, total UK government debt exceeded £2.1 trillion, approximately 97.9% of GDP. To cope with the debt crisis, the US government has printed massive amounts of dollars, raised interest rates, and issued treasury bonds, while compelling its allies to purchase US debt. This practice of attempting to monetize US debt and harvesting global financial "leeks" [5] harms both others and itself; it not only transfers debt risks to other nations but also pushes up inflation at home and in European countries, causing ordinary people to suffer deeply.
(2) The degradation of Western democratic systems is a major reason for the predicament of Western political systems.
When making major decisions, contemporary Western leaders often fall into the logic of a "closed loop," prioritizing ideological coloring, partisan political interests, and national strategic security while clearly neglecting the interests of the broad masses and the pragmatic developmental needs of the state. For instance, EU leader Ursula von der Leyen, former British Conservative leader Boris Johnson, and German Chancellor Olaf Scholz all acted as the vanguard for European political elites in confronting Russia during the Russia-Ukraine conflict. This led to a deterioration of relations between Europe, the UK, Germany, and Russia, ultimately resulting in the European energy crisis. Based on the performance of Western politicians before and after the conflict, some Western scholars have reached an exceptionally embarrassing conclusion for Western leaders: contemporary Western leaders generally lack foresight, the ability to suppress emotions, and historical consciousness; due to the absence of outstanding leaders, the West is losing its vitality. US columnist Bret Stephens even lamented the lack of leadership in the Western world: "We are faced with a failed American president, a timid German chancellor, and a British prime minister about to leave office in disgrace."
The Western political mechanism of "one person, one vote" continuously exposes the defects in its institutional design. Although Western democratic politics superficially pursues absolute equality in participation, in reality, ordinary people do not enjoy true democratic rights. Western democratic politics is often hijacked by various interest groups, and political power is manipulated by capital. Coupled with the inclusion of various interest claims in decision-making, this leads to inefficiency in political policy-making and a lack of policy continuity. The degradation of Western democratic politics is particularly prominent in the UK. The British Conservative government, produced through democratic voting, has rotated through five prime ministers like a "lantern show" [6] since embarking on the point of no return with Brexit in 2016. Although the opposition Labour Party has recently led the Conservatives by a large margin in polls, it has not shaken the governing status of the internally fractured and policy-wavering Conservative Party. The degradation of Western democratic systems has triggered chaos in Western politics and successive social strikes and demonstrations, while also providing an opportunity for far-right European populist parties to take the reins of state power.
(3) The lack of moderation in political ecological movements has had a major impact on Western economic development.
The ecological crisis is closely related to the capitalist system and the disorderly expansion of capital. The development model of overproduction and over-exploitation formed by capitalism inevitably inflicts serious damage on the ecological environment. In reflecting on the ecological crisis caused by capitalism, various schools of ecological thought have emerged in contemporary European society, including "ecocentrism," "eco-socialism," and "eco-Marxism." Among them, "eco-socialism" possesses democratic socialist attributes, offers severe critiques of the ecological disasters caused by the capitalist system, and represents the left wing of the green ecological movement. In recent years, European Green parties, represented by the German Green Party, have risen abruptly and are moving toward the center of European political power. The German Green Party successfully entered the current German government, securing key positions such as Vice Chancellor, Minister for Economic Affairs, and Foreign Minister. The European Green Party alliance also ranked among the four largest groups in the 2019 European Parliament elections.
The vigorous development of political ecological movements helps drive Europe to lead the world in achieving a green economic transition. However, while criticizing the loss of environmental control, the European political ecological movement has "struck with the edge of the sword" [7], ignoring the actual developmental conditions of European countries and adhering to the doctrine of environmental supremacy, leading to deviations and errors in major national decisions. The European Greens advocate for strengthening social welfare and caring for vulnerable groups, with a special emphasis on climate change and environmental protection. While these views with left-wing political coloring cater to the mainstream public opinion of European society, they have caused negative consequences in practice. The European social welfare system has become the greatest obstacle to economic development, technological innovation, and the reduction of fiscal deficits in European countries, and it ought to be reformed; however, the Green Party has done the opposite. The relevant policy propositions of European Green parties will lead to the fiscal deficits and public debt problems of European nations becoming deep-seated and irreversible. For instance, after taking office, the German Green Party pushed the government to formulate unrealistic policies regardless of the fundamental national configuration. At the critical moment of energy shortages caused by the Ukraine crisis, Green Party leaders blindly demanded sanctions against Russia, abandoning the "Nord Stream 2" natural gas pipeline project painstakingly built by Germany and Russia, and advocating for the cessation of energy imports from Russia. This decision, which appears to have a sense of justice, actually harms the country and the people. The German Green Party’s practice of overemphasizing the ecological environment and "value-based diplomacy" does not help resolve the energy crisis; instead, it drags down German economic growth and European economic recovery.
(4) The loss of control in managing the Ukraine crisis further intensifies contradictions in capitalist society.
The emergence of the Ukraine crisis, marked by the Russia-Ukraine geopolitical conflict, has complex causes. From the perspective of the diplomatic system, the West’s miscalculation in crisis management is a major reason for the outbreak and spillover effects of the crisis. The outbreak of the Ukraine crisis is an inevitable result of the current process of capitalist expansion. Faced with institutional and social problems caused by the systemic crisis of capitalism, launching foreign wars or creating crisis conflicts to divert domestic contradictions and public attention is a customary operation for the ruling class of capitalist countries. For the United States, creating the Russia-Ukraine war serves three purposes: first, to alleviate currently sharp domestic social contradictions and divert public attention, leading the public to focus more on and condemn Russia’s acts of invasion; second, to tightly bind European countries to the anti-Russian alliance for the benefit of the US; and third, while "strangling Russia," America’s greatest competitor, it sells US arms and natural gas to Europe, profiting immensely from a national calamity.
Meanwhile, the EU countries that followed the US and became deeply embroiled in the Ukraine crisis have consequently fallen into a series of predicaments. In June 2022, the inflation rate in the 27 EU countries reached 9.6%, with energy prices rising 42% year-on-year and food prices rising 8.9%, all hitting record highs. Simultaneously, the latest approval ratings for German Chancellor Scholz and the German government have reached record lows, with 62% of the public dissatisfied with Scholz and 65% dissatisfied with the new government. The inflation crisis, energy crisis, government crisis, and food crisis plague European society; these crises are precisely the spillover effects of the Ukraine crisis, which in turn will exacerbate the internal contradictions of European society and create more political turmoil.
III. How to View New Changes and New Problems in Contemporary Capitalism
In short, contemporary Western capitalism faces a series of unprecedented political, economic, and social crises, and new changes, situations, and problems have appeared. How to view these changes and uncertainties is a major task bestowed by the times upon Marxist theoretical workers.
(1) Destruction and Rebirth: An Analysis of the Pros and Cons of the Contemporary Capitalist System
In recent years, the various crises and contradictions appearing in Western countries have been complex and interrelated, involving both the capitalist logic of competition and profit-seeking and the defects of the contemporary capitalist institutional model. Only by examining the two in combination can one deeply analyze the inherent contradictions of capitalism and find the root cause of the systemic crisis in Western society. The institutional predicament existing in contemporary Western society is indeed broad-spectrum and deep-seated; behind phenomena such as real economy imbalance, state intervention failure, and democratic political dysfunction lies a crisis of the capitalist system itself.
Entering the era of state monopoly capitalism, the intensity of Western government intervention in the economy, finance, and markets has significantly enhanced. Superficially, this helps resolve economic crises and alleviate social contradictions, but in reality, no matter how strong the state intervention, it cannot conceal the inherent defects of the capitalist system nor fundamentally solve the problems. For example, Western governments all want to implement "re-industrialization" policies, but with little success; particularly with the current intensification of the European energy crisis and persistently high inflation, many Western enterprises are considering moving abroad, making the return of manufacturing difficult. Furthermore, political chaos such as Western political polarization, social fragmentation, and the rise of far-right populism will inevitably have a greater impact on the Western capitalist system. The decline of the Western hegemony system, centered on the US dollar and US dominance, is closely related to the inherent systemic crises and institutional defects of the West. The continuous fermentation of the Ukraine crisis resulting from the Russia-Ukraine conflict has, in turn, intensified various contradictions in Western society and accelerated the process of decline for the Western hegemony system.
(2) Transformation and Reconstruction: The Development Path of Capitalism in the 21st Century
The world today is undergoing profound changes unseen in a century [8]; state monopoly capitalism is burdened by deep-seated problems and its defects are fully exposed. Over the next twenty to thirty years, capitalism will inevitably undergo significant transformations and experience even greater labor pains. The principles established by Western neoliberalism after the Second World War, the Western model of capitalist development, as well as Western values and the international order, are all encountering massive challenges. Consequently, the developmental path of capitalism in the 21st century is bound to be full of more twists, turns, and uncertainties.
The critique and questioning of the current systemic crisis of capitalism by Western academia will inevitably trigger skepticism and reflection regarding the capitalist political system and the old international order. For the capitalist developmental path to transform, the consequences brought about by several variables must be fully considered. First is the crisis of faith triggered by the fading luster of Western values. Second is that the Western-style democratic system cannot guarantee that political elites enter the core of state power to govern and administer the country; it cannot reduce Western political polarization, nor can it prevent narrow nationalism and extreme populist forces from taking power. Third, neoliberalism has weakened the ability of Western governments to respond to major crises and has exacerbated inequality and class stratification in capitalist societies, yet after discarding it, Western countries are finding it difficult to quickly locate an effective "theoretical guide." Fourth, future models of capitalist development may be labeled by Western scholars with such terms as "green capitalism," "ecological capitalism," "national debt capitalism," or "populist capitalism." However, regardless of the direction in which it develops, the establishment of a new model of capitalist development will undergo a long period of labor pains and turbulence.
(III) The Contest Between the "Two Systems": A Profound Shift in Favor of Socialism has Occurred
The disintegration of the Soviet Union and the drastic changes in Eastern Europe [9] in the 1990s caused a severe imbalance in the balance of power between the two global social systems of capitalism and socialism, sending the world socialist movement into a low ebb. Right-wing Western scholars, represented by Francis Fukuyama, proclaimed that history had reached its "end." Erroneous theoretical viewpoints, such as "Western democratic systems will unify the entire world" and "the neoliberal economic model will become the global exemplar for development," were clamorous for a time. Yet, after only thirty years, a profound change has occurred in the balance of power between the two major global social systems.
Under the strong leadership of the Communist Party of China, socialism with Chinese characteristics has achieved great accomplishments that have attracted worldwide attention. This has greatly enhanced our country's comprehensive national strength, national defense capabilities, and international competitiveness; it has significantly improved the living standards of the masses, allowing scientific socialism to radiate great vitality in China. While the cause of socialism with Chinese characteristics is flourishing, the major Western countries are facing a series of dilemmas, including severely damaged economies, dysfunctional political operations, and serious social stratification. Countries dominated by the two systems of socialism and capitalism have formed a sharp contrast in terms of state governance, modes of development, governing philosophies, and policy measures. This situation fully proves that the historical evolution and the contest between the two ideologies and two social systems on a global scale have undergone a major and profound shift in favor of Marxism and in favor of socialism.