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In the five years between the disappearance of Lin Biao in 1971 and the death of Mao Zedong in 1976 the Chinese political scene was highly volatile. Mass campaigns erupted regularly, disrupting and diverting efforts to normalize political, economic and social activities, which had originally been thrown into chaos during the upheavals of the Cultural Revolution. After the 10th Congress of the Chinese Communist Party (CCP) in August 1973 the question of succession to the ageing Mao and ailing Premier Zhou Enlai became a matter of urgency to the political elite. At issue was the direction China would take in the post-Mao era, central to which was an assessment of the validity of Mao's thesis concerning the continuation of class struggle in socialist society, and his attempt to put into operation the conclusions he drew from this analysis.
The shift in China's economic strategy following the Third Plenum of the 11th Central Committee of the Chinese Communist Party (CCP) in 1978 was an attempt to readjust and reform the economic system. First, reform measures were introduced in the agricultural sector. Secondly, the commercial sector was gradually being adjusted to allow the market mechanism to play a role under the “guidance” of state planning. Thirdly, there was more investment in transport and communications. Fourthly, the rate of accumulation by the state was reduced while the rate of consumption by the people was raised through higher incomes and the availability of more consumer goods. Fifthly, there were attempts to readjust the investment pattern between agriculture, heavy industry and light industry. Last, but not least, reform measures were introduced in the management of state enterprises. The article is concerned with this reform.
Sino-Japanese ties have been expanding since formal diplomatic relations were established in 1972. Recently, both governments organized a China–Japan Friendship Committee for the 21 st Century, a Sino-Japanese version of the U.S.–Japan Wiseman's Group, which has played an important role in cementing links between the United States and Japan through the years. The new China–Japan Committee is jointly headed by Tadao Ishikawa, president of Keio University and a scholar of Chinese politics, and by Wang Zhaoguo, the 45 yearold head of the general office of the Chinese Communist Party. This committee holds annual meetings to explore Sino-Japanese relations in depth. In addition, since 1982, a China–Japan Civilian Meeting has been convened, alternately in Tokyo and Beijing, bringing together over 100 Chinese and Japanese businessmen, politicians and scholars to survey Sino-Japanese relations. Finally, since 1980, at an annual ministerial meeting, the top ministers of each government review their activities.