1. They include: Gongsi, Shoudu Gangtie, “Shixing jingji zerenzhi shi yitiaoban hao qiye de xin luzi” (“Implementing the economic responsibility system is a new way to good enterprise management”), Jingji guanli (Economic Management), No. 3 (1982), pp. 9–14Google Scholar;

Shougang Jihuachu, “Zai shixing jingji zerenzhi zhong jiaqiang quanmian jihua guanli” (“Under the economic responsibility system strengthen all aspects of planning management”), ibid. No. 4 (1982), pp. 22–29.

Shougang Laodong Gongzichu, “Gaijin jiangli zhidu jiaqiang laodong guanli” (“Improve the system of rewards and strengthen labour management”), ibid. pp. 40–45.

Shi Yizhou, “Shougang zai gaige zhong kuobu qianjin” (“Shougang advances with giant strides under reform”), ibid. No. 5 (1983), pp. 13–16.

2. My six months' stay in China in 1983 was sponsored by the Griffith University –Sichuan University Exchange Scheme. I am indebted to my host university for making this case study possible. This article is based on part of the data collected from in-depth interviews at the SCF during mid May to mid July 1983, and additional information thanks to long hours of research by SCF staff into their files.

3. Reynolds, Bruce L.. “Reform in Chinese industrial management: an empirical report,” in Joint Economic Committee. China under the Four Modernizations, Pt. 1 (Washington, D.C.: U.S. Government Printing Office, 1982), p. 120Google Scholar;

4. Hussain, Athar. “Economic reforms in Eastern Europe and their relevance to China,” in Feuchtwang, Stephen and Hussain, Athar (eds.), The Chinese Economic Reforms (London: Croom Helm, 1983) pp. 91–120Google Scholar;

5. Nove, Alecet at. (eds.), The East European Economies in the 1970s (London: Butterworth. 1982)Google Scholar; and Economic and Information Directorates of NATO, papers from Colloquium, 16–18 April 1980. Brussels. Economic Reforms in Eastern Europe and Prospects for the 1980s (London: Pergamon Press, 1980)Google Scholar;

6. Bornstein, Morris, “Economic reform in Eastern Europe.” in Joint Economic Committee, East European Economies Post-Helsinki (Washington. D.C.: U.S. Government Printing Office. 1977), p. 109Google Scholar;

7. Hohmann, Hans-Hermann, “Economic reform in the 1970s–policy with no alternative,” in Nove, Alecet al. (eds.), The East European Economies in the 1970s, p. 2Google Scholar;

8. Zhongguo tongji nianjian 1983 (Statistical Yearbook of China 1983) (Beijing: Zhongguo tongji chubanshe, 1983), pp. 127 and 139Google Scholar;

9. Ibid. pp. 21, 47 and 75.

10. Ibid. pp. 106 and 108.

11. Schurmann, Franz, Ideology and Organization in Communist China, 2nd edit. (Berkeley: University of California Press, 1968), p. 249Google Scholar;

12. 1981 Almanac of China's Economy (Beijing: Jingji guanli zazhi chubanshe, 1982), p. 11–21Google Scholar;

13. Guoying gongchang changzhanggongzuo zanxmg tiaoli (Provisional Regulations on the Duties of the Director of a State-Run Factory) (Place not stated: Falu chubanshe, 1982)Google Scholar;

14. Berliner, Joseph S., Factory and Manager in the USSR (Cambridge, Mass.: Harvard University Press, 1957)CrossRefGoogle Scholar; and “Managing the USSR economy: alternative models.” Problems of Communism, (January–February 1983), pp. 40–56; Lavigne, Marie. The Socialist Economies of the Soviet Union and Europe, trans, by Waywell, T.G. (London: Martin Robertson, 1974Google Scholar; Original French edition in 1970); and Nove, Alec, The Soviet Economic System (London: George Allen and Unwin, 1977)Google Scholar;

15. Reynolds, , “Reform in Chinese industrial management,” p. 121Google Scholar;

16. Yi, Xu and Baosen, Chen, Zhongguo de caizhen 1977–80 (Finance in China 1977–80) (Beijing: Renmin chubanshe, 1982), p. 2Google Scholar;

17. Donnithorne, Audrey, China's Economic System, 2nd edit. (London: C. Hurst and Co, 1981), pp. 151–57Google Scholar; and Bastid, Marianne, “Levels of economic decisionmaking” in Schram, Stuart R. (ed.), Authority Participation and Cultural Change in China (Cambridge: Cambridge University Press, 1973), pp. 159–97Google Scholar;

18. Renmin ribao (People's Daily), 9 May 1980, p. 5. In addition, Lin has reported in “Sichuan Sheng liangnian lai jingji tizhi gaige de jingyan yu wenti” (“Sichuan Province's problems and experience in reform of economic system in the past two years”), Jingji guanli, No. 6 (1981), p. 19Google Scholar (also quoted by Reynolds in “Reform in Chinese industrial management”), that reform of the economic system in Sichuan would be in three stages: the first stage would coincide with the first step of the enterprise reform mentioned in the text, the second stage would involve both the second and third steps of the enterprise reform, abolishing enterprises' subordination to local governments and ministries, and reforming the price and taxation systems; and the third stage would be a reform of the whole economic structure and organization and the system of economic leadership.

19. The Sichuan Provincial Committee in February 1979 drew up “Guanyu kuoda qiye quanli, jiakuai shengcan jianshe bufa de shidian yijian” (“Suggestions to enlarge enterprise powers, accelerate steps in production construction”).

20. Reynolds, could be correct in his statement that the July directives and the Sichuan 14 and 12 Articles have not been published, in “Reform in Chinese industrial management,” p. 126Google Scholar; The July directives include “Some regulations on enlarging management autonomy of state industrial enterprises” (“Guanyu kuoda guoying gongye qiye jingying guanli zizhuquan de ruogan guiding”) and “Regulations on state enterprises practising profit retention” (“Guanyu guoying qiye shixing lirun liu cheng de guiding”).

21. 1981 Almanac of China's Economy, pp. 11–32–11–34. It was revised under the State Council (1980) No. 23 directive, “The state economic committee and the Ministry of Finance on the experimental method of profit retention in state industrial enterprises” (“Guojia jingji weiyuanhui, caizhenbu guanyu guoying gongye qiye lirun liu cheng shixing banfa”).

22. Donnithorne's personal notes, 1980.

23. Ling, Lin, “Sichuan Sheng yinian lai kuoda qiye zizhuquan de shidian qingkuang” (“Sichuan Province one year after experiments in enlarging enterprises' autonomy”), Jingji guanli. No. 6 (1980), pp. 13–16 and 51Google Scholar;

24. “Sichuan baige qiye shixing kuoda zizhuquan jian chengxiao” (“Sichuan's 100 enterprises achieved results in the experiment to enlarge autonomy”), Renmin ribao, 14 July 1979, p. 1.

25. The “five assignments” proposed in the July 1978 Party Central Committee draft regulations on industrial development was an attempt to ensure stable production, and fulfilment and over-fulfilment of annual state plans by firms. The five assignments relate to the fixing of (1) the firm's scope of production and product orientation, (2) the firm's workforce, (3) the supply sources and the firm's consumption norms on raw and other materials, fuel, power, and equipment, (4) the firm's fixed and working capital, and (5) the firm's co-operation with other organizations.

26. Renmin ribao, 21 April 1980, p. 1.

27. 1982 Almanac of China's Economy (1982), pp. III–36–III–38. The directive was “Provisional regulations on some issues in implementing the economic responsibility system in industrial production” (“Guanyu shixing gongye shengchan jingji zerenzhi ruogan wenti de zanxing guiding”).

28. Lavigne, , The Socialist Economies of the Soviet Union and Europe, p. 68Google Scholar;

29. Yun, Tian, “More authority for enterprises revives the economy,” Beijing Review, No. 14 (6 04 1981), p. 25Google Scholar;

30. Yizhou, Shi, “Shougang zai gaige zhong kuobu qianjin” (“Shougang advances with giant strides under reform”), p. 13Google Scholar;

31. Granick, David, Enterprise Guidance in Eastern Europe (Princeton: Princeton University Press, 1975), pp. 98, 127 and 195Google Scholar;

32. Ling, Lin, “Sichuan Sheng liangnian lai jingji tizhi gaige de jingyan yu wenti” (“Sichuan Province's problems and experience in reform of the economic system in the past two years”), p. 17Google Scholar;

33. Yanjiu, Shehui Kexue (Social Science Research), Sichuan kuoda qiye zizhuquan (Enlargement of Enterprise Autonomy in Sichuan) (Sichuan: Shehui kexue yanjiu zazhi bianji, 1980), p. 45Google Scholar;

34. Zehong, Chenel al., “Sichuan diyi mian fangzhi yinran chang zi fu ying-kui shidian diaocha,” (“Inquire into Sichuan No. 1 Textile Mill's experiment of responsibility for own profits and losses”), Jingji guanli, No. 8 (1982), p. 30Google Scholar;

35. Chengdu wanbao (Chengdu Evening News), 19 May 1983.

36. Bornstein, Morris, “Economic reform in Eastern Europe,” p. 116Google Scholar;

37. Brugger, Bill, “Industrial management in China: Summary of a first-hand investigation,” paper delivered at the Conference on Chinese Modernization: The Latest Phase, at the Contemporary China Centre, Australian National University (02 1983), p. 27Google Scholar;

38. Shirk, Susan L., “Recent Chinese labour policies and the transformation of industrial organization in China,” The China Quarterly, No. 88 (12 1981), pp. 575–93CrossRefGoogle Scholar;

39. Jackson, S., “Population policy in the People's Republic of China.” Geography, Vol. 66, No. 292, Pt. 3 (07 1981). p. 237Google Scholar;

40. Lavigne, , The Socialist Economies of the Soviet Union and Europe, p. 55Google Scholar;

41. Jackson, Sukhan, “Profit sharing, state revenue and enterprise performance in the PRC,” Australian Journal of Chinese Affairs, No. 12 (07 1984), pp. 97–112CrossRefGoogle Scholar;

42. Interview notes, May 1983.

43. 1982 Almanac of China's Economy, pp. III–31 –111–34. On 24 September 1981 the State Economic Committee and the System Reform Office of the State Council issued “Views on some issues of implementing the economic responsibility system in industrial production” (“Guanyu shixing gongye shengchan jingji zerenzhi ruogan wenti de yijian”).

44. Dixin, Xu, “Guoying qiye shixing jingji zerenzhi de jige wenti” (“Some problems on the implementation of the economic responsibility system in state enterprises”), Xin hua wenzhai (New China Digest), No. 2 (1982), pp. 52–55Google Scholar; [From Jingji yanjiu (Economic Research) No. 12, 1981Google Scholar;]

45. Jihuabu, Gang, “Zai shixing jingji zerenzhi zhong jiaqiang quanmian jihua guanli” (“Under economic responsibility system strengthen all aspects of planning management”), p. 22Google Scholar;

46. Yizhou, Shi, “Shougang zai gaige zhong kuobu qianjin” (“Shougang advances with giant strides under reform”), p. 13Google Scholar;

47. Shibai, Lui, “Lun shehui zhuyi quanmin suoyouzhi qiye de zi fu ying-kui” (“To discuss socialist state enterprise's responsibility for own profits and losses”), Jingji kexue (Economic Science), No. 1 (1981), p. 18Google Scholar;

48. Sichuan No. 1 Textile Mill, “Zi fu ying-kui shi qiye shengchan fazhan de juda tuidongli” (“Responsibility for own profits and losses is a great motivating force in enterprise production development”), Jingji guanli, No. 12 (1980), pp. 29–30Google Scholar;

49. Jiachun, Wang, “Dui guding zichan zhejiulu wenti de jidian renshi” (“On the question of the depreciation rate of fixed assets”), Jingjiyu guanli yanjiu (Economic and Management Research), No. 2 (1983), p. 29Google Scholar;

50. Lavigne, , The Socialist Economies of the Soviet Union and Europe, p. 74Google Scholar;

51. Ibid. p. 290.

52. Ibid.

53. Donnithorne's personal notes, 1980.

54. Hong, Ma, New Strategy for China's Economy (Beijing: New World Press, 1983), p. 109Google Scholar;

55. Min, Kong, “Shuizhi gaige yu jiage gaige” (“Tax system reform and price reform”), Xin hua wenzhai, No. 11 (1984), p. 54Google Scholar; (From Renmin ribao, 17 September 1984.)