1. Reynolds, Bruce L., “Reform in Chinese industrial management: an empirical report,” in Joint Economic Committee, U.S. Congress (ed.), China Under the Four Modernizations (Washington: U.S. Government Printing House, 1982), pp. 119–36Google Scholar; Hussain, Athar, “Economic reforms in Eastern Europe and their relevance to China,” in Feuchtwang, Stephan and Hussain, Athar (eds.), The Chinese Economic Reforms (London: Croom Helm, 1983), pp. 91–120Google Scholar; Paul Hare, “China's system of industrial planning,” ibid. pp. 185–223; Chu-yuan, Cheng, “Economic reform in mainland China: in comparison to Yugoslavia and Hungary,” Issues and Studies, Vol. XIX, No. 9 (09 1983), pp. 27–54Google Scholar.

2. Solinger, Dorothy J., “Economic reform via reformulation in China: where do rightist ideas come from?”, Asian Survey, Vol. XXI, No. 9 (1981), pp. 947–60CrossRefGoogle Scholar.

3. “Zhong gong zhongyang guanyu jingji tizhi gaige de jueding” (“Resolution of the Central Committee, CCP, concerning reform of the economic system”), Dagong bao (Dagong Daily), 21 October 1984, pp. 2 and 6.

4. The term “enterprise autonomy” refers to a general decentralization of managerial power from the state to the enterprise level. Starting in 1980 when the central authorities discovered that the enterprise autonomy was out of hand, the concept of “industrial economic responsibility system” (gongye jingji zeren zhi) was used to order to underscore the delegation not only of power, but also of responsibility to enterprise units within the administered economy. The industrial economic responsibility system also means the delegation of power and responsibility to the sub-units within an enterprise.

5. Dror, Yehezhel, Public Policy Making Re-examined (Bedfordshire, England: Leonard Hill Books, 1973), pp. 142–47Google Scholar.

6. “Diyi jijie gongyebu guanyu gaibian xianxing guanli zhidu de ruogan guiding” (“Regulations of the First Ministry of the Machine Building Industry concerning changes of the current managerial system”), Zhonghua renmin gongheguofagui huibian (The Collected Laws of the People's Republic of China) (January–June 1957), pp. 195–200; “Guowuyuan guanyu gaijin gongye guanli tizhi de guiding” (“State Council regulation concerning the improvement of the industrial managerial system”), ibid. (July–December 1957), pp. 391–97, “Zhongguo gongchandang zhongyang weiyuanhui, guowuyuan guanyu gaijin jihua guanli tizhi de guiding” (“Regulation of the Central Committee, CCP, and the State Council concerning the improvement of the system of planning management”), ibid. (July–December 1958), pp. 96–99.

7. The profit sharing scheme started in 1953. Rulings were made in 1954 and 1956, and in 1958 the State Council promulgated a document concerning an enterprise retained profit system. See “Guowuyuan guanyu shixing qiye lirun liucheng zhidu de jixiang guiding” (“Several State Council regulations concerning the implementation of the enterprise retained profit system”), ibid. (January–June 1958), pp. 239–42.

8. “Guowuyuan zhuanfa caizhengbu Zhongguo renmin yinhang guanyu guoying quiye liudong zijin gaiyou renmin yinhang tongyi guanli de buchong guiding de tongzhi” (“State Council transmits notice of a supplementary ruling of the Finance Bureau and People's Bank concerning state-run enterprises' working capital coming under the unified management of the People's Bank”), ibid. (January–June 1959), pp. 121–24; “Guowuyuan dui chaizhengbu Zhongguo renmin yinhang ‘guanyu gaijin guoying qiye liudong zijin gongying banfa de baogao’ de pifu” (“State Council response to the Finance Bureau and People's Bank report on the method of improving the supply of liquid funds of state-run enterprises”), ibid. (July 1960-December 1961), pp. 72–74.

9. “Guowuyuan guanyu gaijin jiben jianshe caiwu guanli zhidu de jixiang guiding” (“Several State Council regulations on improving the system of financial management for basic construction”), ibid. (July 1960-December 1958), pp. 123–24. “Guowuyuan guanyu jiben jianshe bokuan de jixiang guiding” (“Several State Council regulations concerning basic construction appropriations”), ibid. (January 1962-December 1963), pp. 64–68. “Guowuyuan guanyu gaijin jiben jianshe caiwu guanli zhidu de jixiang buchong guiding” (“Several supplementary regulations of the State Council concerning the improvement of the financial management system for basic construction”), Caizhengbu, (ed.), Zhongyang caizheng fagui huibian (Collected Financial Laws of the Central Government) (01–06 1959), pp. 49–51Google Scholar.

10. Yibo, Bo, “Chongjing he huainian” (“Respect and memory”), Renmin ribao (People's Daily), 3 07 1981 p. 3Google Scholar.

11. Mao Zedong, “Nanning huiyi shang de jianghua” (“Talk at the Nanning Conference”) in Zedong, Mao, Mao Zedong sixiang wansui (Long Live Mao Zedong's Thought), (n.p. 1969), p. 151Google Scholar.

12. Shaoqi, Liu, “Zhongguo gongchandang zhongyang weiyuanhui xiang diba ci quanguo daibiao dahui de zhengzhi baogao” (“Political report of the Central Committee, CCP, to the Eighth Party Congress”) in chubanshe, Renmin (ed.), Zhongguo gongchandang diba ci quanguo daibiao dahui wenjian (Documents of the Eighth Party Congress of the CCP) (Beijing: Renmin chubanshe, 1980), pp. 45–58Google Scholar; Zhou Enlai, “Guanyu fazhan guomin jingji de dierge wunian jihua de jianyi de baogao” (“Report on the proposal of the Second Five-Year Plan for the development of national economy”), ibid. pp. 218–20; Deng Xiaoping, “Guanyu xiugai dang de zhangcheng de baogao” (“Report on the revision of the Party constitution”), ibid. pp. 131–41.

13. Enlai, Zhou, “Report on the proposals of the Second Five-Year Plan,” p. 218Google Scholar.

14. From September to November 1957 the drafting of three policy papers was attributed to Chen Yun: See Chen Yun, “Tizhi gaige yihou yinggai zhuyi de wenti” (“Problems which should be emphasized following reform of the system”) in Yun, Chen, Chen Yun tongzhi wengao xuanji (Selected Manuscripts of Comrade Chen Yun) (Beijing: Renmin chubanshe, 1981), pp. 58–59Google Scholar; Chen Yun, “Guanyu gaijin gongye guanli tizhi de guiding” (“Regulations concerning the improvement of the management system in industry”), ibid. pp. 60–66; Chen Yun, “Guanyu gaijin shangye guanli tizhi de guiding” (“Regulations concerning the improvement of the management system in commerce”), ibid. pp. 67–69.

15. “Liu Shaoqi zai Shigang jinxing fangeming huodong de zuixing lu” (“The criminal record of Liu Shaoqi's counter-revolutionary activities in Shijinzshan Iron and Steel Works”), Beijing gongren (Beijing Workers), No. 4 (17 05 1967), p. 1Google Scholar; Mao Zedong, “Sulian Zhengzhi jigjixue dushu biji” (”Notes on reading the Soviet textbook Political Economy”), Zedong, Mao, Long Live Mao Zedong's Thought (1969), p. 347Google Scholar.

16. Chang, Parris H., Power and Policy in China (University Park and London: Pennsylvania University Press, 1957), pp. 62–64Google Scholar; Yun, Chen, “Dangqian jiben jianshe zhong de jige zhongda wenti” (“Several important problems currently in basic construction”), Hongqi (Red Flag) No. 5 (1959), pp. 1–16Google Scholar; “Zhonggong zhongyang guanyu dangqian gongye wenti de zhishi” (“Central Committee, CCP, directive on current industrial problems”), Zhongguo Shehui Kexueyuan Gongye Jingji Yanjiusuo Ziliaoshi (Chinese Academy of Social Sciences Industrial Economic Research Institute, Reference Department) (ed.), Zhongguo gongye guanli bufen tiaoli huibian (Collected Regulations of China's Industrial Management) (Beijing: Dizhi chubanshe, n.d.), pp. 199–215Google Scholar.

17. “Guowuyuan banbu wuxiang gaige wenjian, jue jianjin zhengdun guanli guoying qiye” (“The State Council promulgates five documents and articles to accelerate the reform of the management of state-run enterprises”), Dagong bao, 30 July 1979, p. 1.

18. “Zhongguo renmin yinhang guanyu guoying qiye liudong zijin gaiyou renmin yinhang tongyi guanli de baogao” (“Report of the People's Bank of China bringing the working capital of state-run enterprises under the management of the People's Bank”), Guowuyuan gongbao (Bulletin of the State Council), No. 15 (1983), p. 698–703Google Scholar.

19. “Jiben jianshe xiangmu baogan jingji zerenzhi shixing banfa” (“Methods for implementing the contract and economic responsibility system for basic construction items”), ibid. No. 8 (1983), pp. 272–96.

20. “Jianchi shijian biaozhun, fazhan jingjikexue” (“Insist on the criterion of practice and develop economic science”), Guangming ribao (Guangming Daily), 20 December 1979, p. 4.

21. Xiaoping, Deng, “Muqian de xingshi he renwu” (“The current situation and tasks”), Deng Xiaoping wenxuan (Collected Essays of Deng Xiaoping) (Beijing: Renmin chubanshe, 1983), pp. 203–37Google Scholar.

22. “Zhongguo gongchandang dishiyi jie zhongyang weiyuanhui disan ci quanti daibiao dahui (“Communique of the Third Plenum of the 11th Party Congress, CCP), Hongqi, No. 1 (1979), p. 17Google Scholar.

23. Xiaoping, Deng, “Jiefang sixiang shishi qiushi tuanjie yizhi xiangqiankan” (“Liberate our thinking, seek the truth from facts, unite and look forward”), Deng Xiaoping wenxuan (Collected Essays of Deng Xiaoping), loc. cit. pp. 130–43Google Scholar.

24. Deng Xiaoping, “Jianchi sixiang jiben yuanze” (“Insist on the four basic principles”), ibid. pp. 147–49.

25. “Draft decisions concerning some problems in speeding up the development of industry” (“The thirty articles”), Article X, Issues and Studies, Vol. XV, No. 1 (01 1979), pp. 74–76Google Scholar.

26. “Guoying qiye shixing tiqu he shiyong qiye jijin” (“State-run enterprises implement the appropriation and disbursement of enterprise funds”), Renmin ribao, 20 December 1978, p. 1.

27. Ibid.

28. Haibo, Wang, Jinglin, Wu and Shulian, Zhou, “Bixu ba laodongzhe de yibufen shouru he qiye de jingying zhuangkuang jinmi di liarxi qilai” (“We must closely tie a part of workers' income to the managerial performance of enterprises”), Jingji yanjiu (Economic Research), No. 12 (1978), pp. 37–43Google Scholar.

29. “The State Council promulgates five documents,” Dagong bao, 30 July 1979, p. 1.

30. The programme was known as the “10-point regulation,” which was circulated within the inner circle of the Chinese leadership at the time. A similar version was not promulgated until about five years later in May 1984. See Wenhui bao (Wenhui Daily), 12 May 1984, p. 3.

31. Lingfeng, Du, “Guanyu qiye lirun liucheng wenti” (“On the question of the retention of enterprise profits”), Jingji guanli (Economic Management), No. 4 (1980), pp. 20–23Google Scholar; Shohua, Zhou, “Qiye lirun liucheng jieshao” (“Introducing profit retention of enterprises”), Qiye guanli (Enterprise Management), No. 2 (1981), pp. 27–28Google Scholar; Zhicheng, Liu, “Duiyu kuoda qiye caiquan de jidian kanfa” (“Several opinions on expanding the financial powers of enterprises”), Jingji guanli, No. 4 (1980), pp. 16–19. p. 30Google Scholar.

32. For the original text of the January 1980 regulation, see “Guowuyuan pizhuan guojia jingji wieyuanhui caizhengbu guanyu guoying gongye qiye lirun liucheng shixing banfa tongzhi” (“Circular concerning the implementation of profit retention by staterun industrial enterprises issued by the State Economic Commission and the Ministry of Finance as endorsed and transmitted by the State Council”), Guowuyuan gongbao. No. 1 (1980), pp. 6–10Google Scholar.

33. “Yao yongyu kuachu tizhi gaige de diyibu” (“We must courageously take the first step in reforming the system), Renmin ribao, 10 October 1979, p. 1.

34. Jiang, Hai, “Zhongguo jingji tizhi gaige de qibu: kuoda qiye jingying guanli de zizhuquan” (“The starting-point for reforming China's economic system: expand enterprise autonomy in administration and management”), Jingji daobao (Economic Reporter), No. 30 (1980), pp. 28–29Google Scholar.

35. “Guojia Jingji Weiyuanhui Caizhengbu guanyu guoying gongye quye lirun liucheng sixing banfa” (“Methods of implementing profit retention by state-run industrial enterprises as laid down by the State Economic Committee and Ministry of Finance”), in Zhongguo Renmin Daxue Zhengzhi Jingjixuexi Ziliaoshi (Chinese People's University Political and Economic Study National Office) (ed.), Zhongguo shehui zhuvi jingji wenti (Major Economic Problems of the Chinese Society) (Beijing: Dizhi chubanshe, 1983), pp. 347–50Google Scholar.

36. “Guojia jingji weiyuanhui guanyu kuoda qiye zizhuquan shidian gongzuo qingkuang he jinhou yijian de baogai” (“Report of the State Economic Committee on current pilot schemes for expanding enterprise autonomy and views on the future”), Guowuyuan gongbao, No. 14 (1980), pp. 419–27Google Scholar.

37. “Kuoda zizhuquan shidian fangxiang dui xiaoguo hao” (“The experiments in the expansion of autonomy are in the right direction and their results are good”), Gongren ribao (Workers'Daily), 11 April 1980, p. l; “Guowuyuan pichuan guojia jingweiguanyu kuoda qiye zizhuquan shidian gonguo qingquang he jinhou yijian de baogao” (“Report of the State Council, endorsed by the State Economic Committee, on the current pilot schemes for extending enterprise autonomy and views on the future”), Renmin ribao, 1 September 1980, p. 1.

38. Ling, Lin, “Sichuan Sheng Liangnian Lai Jingji tizhi gaige de Jingyan yu wenti” (“Problems and experience during the past two years of Sichuan in reforming the economic system”), Jingji guanli, No. 6 (1981), p. 20Google Scholar.

39. “Guoying gongye qiye shixing zifu yingkui shidian” (“Pilot programme for implementing the responsibility system relating to profits and losses in state-run industrial enterprises”), Renmin ribao, 20 August 1980, p. 1.

40. Hong, Ma, “Guanyu jingji guanli tizhi gaige de jige wenti” (“Several problems in reforming the system of economic management”), Jingji yanjiu, No. 7 (1981), pp. 11–24Google Scholar.

41. The background to the Sichuan experiment is given by Ling, Lin, “Zhongguo jingji tizhi gaige zai Sichuan de shiyan” (“The experience of Sichuan in reforming China's economic system”), Shehuikexue yanjiu (Social Science Research), No. 3 (1981), pp. 16–22Google Scholar.

42. Ju, Feng and Zhenghua, Zhou, “Sichuan sheng wuge guoying gongye qiye zifu yingkui shidian de tiaocha” (“Survey of experiments in five state-run industrial enterprises of Sichuan province in assuming responsibility for profits and loss”), Zhongguo shehuikexue (China's Social Sciences), No. 3 (1981), pp. 83–96Google Scholar.

43. “Wo sheng yibai qiye shixing kuoda qiye zizhuquan” (“Our province is implementing the expansion of enterprise autonomy in 100 plants”), in Nanfang ribao (Southern Daily), 13 August 1979, p. 1; “Wo sheng yibaige qiye kuoda zizhuquan chu jian chengxiao” (“Initial achievements in 100 enterprises of our province with the extension of their autonomy”), in ibid. 27 October 1979, p. 1; “Baohu xianjin qiye de jijixing” (“Protect the incentives of the advanced enterprises”), ibid. (1 November 1979), p. 3; “Renxin sigai” (“Public feeling for a change”), ibid. 25 April 1980, p. 1.

44. “Bage qiye he yige xian difang qiye shixing zifu yingkui” (“Eight enterprises and one local enterprise at the county level implement the policy of enterprise responsibility for profits and losses”), ibid. 15 October 1980, p. 1; “Guangzhou shiliuge guoying cai mao qiye shixing zifu yingkui” (“Sixteen state-run financial and trading enterprises in Guangzhou implement autonomy over profits and losses”), ibid. 2 February 1981, p. 1; “Shixing duli hesuan zifu yingkui” (“The implementation of independent accounting and responsibility for profits and losses”), ibid. 16 August 1981, p. 1; “Wo sheng bage zifu yingkui shidian danwei qiye qude xin chengji” (“Eight experimental enterprise units relating to autonomous responsibility for profits and losses achieve new successes in our province”), ibid. 5 March 1982, p. 1.

45. “Yichang guanyu kuoda qiye zizhuquan de bianlun” (“A debate in Yinchang concerning the extension of enterprise autonomy”), Nanfang ribao (Southern Daily), 16 August 1979, p. 1; “Qingyuan jingyan jianguole guojia yu qiye geren de liyi” (“The experience of Qingyuan has taken account of the interests of the state and the individual enterprise”), ibid. 21 August 1979, p. 1; “Women dui Qingyuan xian shixing chao jihua lirun tichengjiang de kanfa” (“Our views on implementing the policy for dividing above plan profits in Qingyuan county”), ibid. 19 August 1979, p. 1; “Wo sheng jueding zai xian shu gongye qiye zhong tuiguang Qingyuan jingyan” (“Our province resolves to extend the experience of Qingyuan to industrial enterprises under the jurisdiction of the counties”), ibid. 30 August 1979, p. 1; Ma Yipin, “Yanjiu xin wenti zongjie xin jingyan” (“Investigate new problems, sum-up new experience”), ibid. 17 September 1979, p. 2; “Jiejui le popo duo, banshi nan de wenti” (“Solving the matter of having many mothers-in-law is to handle a difficult problem”), ibid. 14 November 1979, p. 2; Zhonggong Qingyuan xian weiyuanhui, “Guanyu qingyuan xian guoying qiye shixing chao jihua lirun tichengjiang he gaige gongye guanli tizhi de qingkuang baogao” (“Qingyuan county Party Committee report on the implementation in Qingyuan county of the sharing of above plan profits in state-run enterprises and of the reform of the industrial management system”), ibid. 2 August 1980, pp. 2 and 4; “Qingyuan jingyan de xinfazhan” (“New developments in the experience of Qingyuan”), ibid. 23 August 1981, p. 2 and 26 August 1981, p. 2.

46. Yifeng, Zhu Yan and Cai, “Dui Shanghai shi kuo quan qiye lirun liucheng fenxi” (“An analysis of profit-sharing in Shanghai's enterprises with expanded self-management rights”), Jingji yanjiu, No. 9 (1981), pp. 6–12Google Scholar.

47. Jingqi, Jin, “Beijing shi gongjiao qiye shixing lirun liucheng banfa de qingkuang” (“The situation in Beijing industrial and transport enterprises regarding the implementation of the method of profit-sharing”), Jingji lilun yu jingji guanli (Economic Theory and Economic Management), No. 3 (1981), pp. 58–63Google Scholar.

48. Lingshu, Chen, “Yi zhuguanju wei danwei shixing lirun liucheng banfa de libi” (“The pros and cons of taking the responsible bureaus as the unit for implementing the method of profit-sharing”), Jingji guanli, No. 1 (1981), pp. 14–15; p. 29Google Scholar; Youde, Bao, “Kending chengji buduan wanshan” (“Acknowledge the merits and continue for perfection”), Caizheng (Finance), No. 10 (1981), pp. 12–13Google Scholar.

49. “Guanche loushi guowuyuan youguan kuoquan wenjian gonggu tigao kuoquan gongzuo de juti shishi zhanxing banfa” (“Thoroughly and realistically implement the contents of the State Council's documents concerning the extension of powers and consolidate the measures for this work”), Guowuyuan gongbao, No. 14 (1981), pp. 440–51Google Scholar; Hong, Ma, “Gaige jingji quanli tizhi yu kuoda qiye zizhuquan” (“Reform the system of economic management and extend enterprise autonomy”), Hongqi, No. 10 (1980), pp. 50–58Google Scholar.

50. The problem of interference from various supervising authorities came out clearly in Sichuan's case, see Ling, Lin, “Sichuan sheng liangnian lai yilai jingji tizhi gaige de jingyan yu wenti” (“The experience and problems associated with economic reform in Sichuan province during the past two years”), in Jingji guanli, No. VI (1981), pp. 15–26Google Scholar.

51. “Guowuyuan guanyu shixing huafen shouzhi fenji baogan caizheng tizhi de zhanxing guiding” (“Provisional regulation of the State Council on implementing the financial system for dividing revenue and expenditure on a basis of contracting at different levels”), Guowuyuan gongbao, No. 1 (1980), pp. 3–10Google Scholar.

52. Zhao Ziyang suggested that in 1981 the non-budgetary funds controlled by the local governments and enterprise units reached about one half of the state budget. Zhao Ziyang, “Dangqian de jingji xingshi he jinhou jingji jianshe de fangzhen (“The current economic situation and guidelines for future economic construction”), ibid. No. 26 (1981), pp. 816–50.

53. Ziyang, Zhao, “Yanjiu xinwenti, ba jingji gaige gaohao” (“Investigate new problems, set economic reform on the right lines”), Renmin ribao, 21 04 1980, pp. 1 and 2Google Scholar.

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55. “Caizheng bu guanyu zai guoying qiye huifu caizheng zhuchangyuan zhidu de baogao de tongzhi” (“Ministry of Finance circular on restoring the system of permanent financial personnel in state-run enterprises”), Guowuyuan gongbao, No. 10 (1982), pp. 457–58Google Scholar.

56. “Caizhengbu guanyu qingcha toulou qianshui qingkuang he jiaqiang shuishou gongzuo de baogao” (“Ministry of Finance report on checking the situation concerning tax evasion and on strengthening the work of tax collection”), ibid. No. 3 (1982), pp. 284–89.

57. Jingji Fanzui Wenti Jianghua Bianxiezu (ed.) (Office for Compiling Lectures on Economic Crimes), Jingji fanzui wenti jianghua (Lectures on the Problems of Economic Crimes) (Beijing: Xinhua chubanshe, 1983), pp. 1–15Google Scholar.

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60. On the basis of the available data, the increase in the state deficit resulted from a slower growth of revenue than that of expenditure from 1978 to 1982. See State Statistical Bureau, People's Republic of China, Statistical Year Book of China 1984 (Hong Kong: Economic Information and Agency, 1984), p. 447Google Scholar; a large portion of increase of the state deficit was derived from a high growth rate in total investment in fixed assets: 54,830 million yuan in 1977, 66,872 in 1978, 64,936 in 1979, 74,590 in 1980, 66,751 in 1981, 84,531 in 1982 and 95,196 in 1983. See ibid. p. 302.

61. There were steady increases in subsidies to peasants (including that through grain procurement) and in wages to industrial workers, but such increases were within the bounds of increased GNP. It is estimated that from 1979 to 1982 the increase of GNP was RMB 120,000 million, out of which RMB 106,000 was paid to the peasants and workers. See Yibo, Bo, “Guanyu guomin jingji you jihua an bili fazhan de jige wenti” (“Several problems concerning the planned proportional development of the national economy”), Xinhua yuebao (New China Monthly), No. 10 (1983), p. 118Google Scholar.

62. The increase in the real wage was limited from 1977 to 1983 given the long wage freeze during the Cultural Revolution 1966–76. The increase was no more than 24% between 1977 and 1983. See State Statistical Bureau, Statistical Year Book, p. 460.

63. Ibid. p. 417.

64. Ibid.

65. Ibid. p. 301.

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72. Caizheng bu, “Guanyu guoying qiye ligaishui shixing banfa” (“Methods for implementing the substitution of profits for taxes in state-run enterprises”), ibid. No. 10 1983), pp. 475–78.

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