Wuxi’s Twin Stars of Chinese Economics: Sun Yefang and Xue Muqiao

Wuxi’s Twin Stars of Chinese Economics: Sun Yefang and Xue Muqiao

In the realm of Chinese economics, few names shine as brightly as Sun Yefang and Xue Muqiao. Hailing from the same ancient town of Yuqi Lishe in Wuxi, these two intellectual giants emerged as pioneering figures whose contributions fundamentally shaped modern China’s economic policies and theoretical frameworks. Their parallel journeys from Jiangsu province to national prominence represent one of the most remarkable stories in twentieth-century economic thought.

The Early Foundations

Both economists developed their foundational principles during turbulent times. Sun Yefang (1908-1983), born Xue Eguo, began his revolutionary activities early, joining the Socialist Youth League at just 15 years old. His experiences organizing workers during the May 30th Movement and his subsequent studies at Moscow Sun Yat-sen University forged his commitment to economic theory grounded in practical reality.

Xue Muqiao (1904-2005), born Xue Yuling, followed a similarly transformative path. His imprisonment after the April 12 Incident became an unexpected opportunity for deep study of economics, philosophy, and history—laying the groundwork for his future contributions. His remarkable ability to synthesize theoretical knowledge with practical implementation would become his signature strength throughout his career.

Revolutionary Economic Thought

Sun Yefang’s economic philosophy centered on the primacy of value in socialist economies. His famous declaration—”Among a thousand rules, ten thousand rules, value is the first rule”—became both his professional mantra and personal creed, even when it led to political persecution during the Cultural Revolution. His courageous defense of these principles during imprisonment, where he mentally composed his “Socialist Economic Theory” 85 times, demonstrates extraordinary intellectual commitment.

Xue Muqiao’s contributions proved equally transformative. His groundbreaking work Economics, written amid military conflict, became the most widely used economics textbook in Communist-led areas during the 1940s. His practical innovations in economic management, particularly his celebrated “Shandong Currency Miracle” during wartime, demonstrated how theoretical principles could be successfully applied in challenging circumstances.

Enduring Legacies and Modern Relevance

The twin legacies of these Wuxi economists continue to influence China’s economic landscape. Sun Yefang’s insistence on statistical accuracy and value-based planning helped establish foundations for China’s economic measurements and reforms. His leadership at the Institute of Economics fostered generations of economic thinkers who would continue his work.

Xue Muqiao’s vision proved particularly prophetic regarding market reforms. His 1980 “Preliminary Opinions on Economic System Reform” represented China’s first programmatic document for market-oriented reforms, advocating for a commodity economy with public ownership playing a dominant role alongside diverse economic elements. His establishment of the Economic Research Center under the State Council created lasting mechanisms for expert involvement in economic policy-making.

What makes their parallel careers particularly remarkable is how they complemented each other’s work while maintaining distinct perspectives. Both approached economics with rigorous intellectual standards but applied them differently—Sun focusing more on theoretical frameworks and statistical systems, while Xue excelled at practical implementation and policy design.

Their shared Wuxi origins speak to the region’s unique historical role as both an economic hub and intellectual incubator. The same commercial environment that produced renowned industrialists also nurtured these groundbreaking economists who would help shape modern China’s economic destiny.

Today, as China continues its economic transformation, the principles advanced by these two visionaries—emphasis on value, statistical rigor, market mechanisms within socialist frameworks, and the integration of theoretical knowledge with practical implementation—remain deeply relevant. Their careers stand as powerful testament to how intellectual courage, combined with deep commitment to both theoretical truth and practical improvement, can shape national economic trajectories across generations.