There is much confusion in the world workers' movement about unions in China, and even more confusion about the class character of the Chinese state. This article compares a state that arises from a socialist revolution, such as the Chinese state after 1949, to a "labor union risen to state power." Trade unions in such states are like a "subcommittee" of this union-instate-power, with the important responsibility of defending workers' interests in the workplace. But the new state also faces many other important tasks, including assuring food supply, economic development, equality for women, nationalities, and youth, environmental and other necessary tasks. The article argues for developing the relative separation and effectiveness of the "subcommittees" which are addressing each of those necessary tasks—and simultaneously developing periodic "harmonizing mechanisms" (ranging from conferences to legislative meetings) in order to achieve balance between those necessary tasks. Such balance is required because even states formed by a socialist revolution must make "the best out of a bad situation," just like labor unions in capitalist countries.