Abstract: How to properly deal with capital is an important theoretical and practical issue in the new era. To address this issue, Marx constructed the scientific methodology beyond Smith, thus realizing the dialectical analysis of capital civilization. In other words, Marx affirmed the civilized function of capital on one hand and criticized the limitations of capital civilization on the other. To be more specific, he expounded four tensions of capital civilization, revealed and criticized its four limitations. His dialectical criticism, therefore, provides a scientific methodology for how to properly treat capital as a factor of socialist production. Capital, capitalist and capitalism are similar concepts sharing family resemblance, but capital is not equal to capitalism. Two wrong tendencies should be criticized based on China’s basic national conditions of socialism with Chinese characteristics and adherence to the historical dialectics of human civilization and progress. At the primary stage of socialism, we should take full advantage of the tension of capital so as to stimulate the vitality of capital and market, thus making an innovation on the new form of socialism with Chinese characteristics. At the same time, we should transcend its limitations through system, law, policy norms and value orientation.

Key words: Marx, capital civilization, capitalism, dialectics, tension, limitations