Before 1980, tickets were needed for purchasing goods (rice, oil, cloth, bike, watch, sewing machine, soap, meat and etc.).

At the 3rd Plenary Session of the 11th Congress of the Communist Party of China in Dec. of 1978, there was a heated discussion on the relationship between the planned economy and the market economy (addressed by Li Xiannian, the former Vice Premier). And the Reform and Open-door and flexible Policy was put forward, concentrating then on development of economy especially in agriculture, focusing on the science & technology, education and laws for the purpose of improving the living standard of the people.

Deng Xiao-ping: “It is a qualified and good cat if it could catch rats, who cares about its color?”  

“Socialism will die if we won’t start reforms now. We must get rid of bureaucracy and learn from the foreign countries. We need to pay more attention to make research on the business management, management system and economic policies. We should allow some regions, some enterprises and even some people to develop and get rich first, which could be a model for the rest.”

“We leaders must learn as soon as possible three things: 1) Economics; 2) Science and Technology; 3) Management. Everyone of us should take the lead in researching on the modern economic construction.”

Between 1981-Oct. 1984, socialist commodity economy was put forward. Since Oct. 1984, Economic System Reform started.
 

The basic feature of China’s economic reform is the integration of the socialist system and the market economy. The establishment of the socialist market economy, taken as a target mode, has undergone a process of constant exploration and incessant summing up of experience.

China adopted planned economy as its management mode in the early period of New China. Because:
     1) Lack of experience
     2) Socialism and planned economy were born together

The State’s support concentrates on 800 to 1000 outstanding and strong enterprises who occupy over 80% of the total national growth output. The other enterprises should find their way to survive.

Great efforts and even sacrifice has been done to join the WTO and to meet the international rules, standards and requirements in the past years. We call it “connecting with the international rail or track.” 516 enterprises are considered as national pillar industry.