Technological and Industrial History of The People's Republic of China - Overview

Overview

By the mid-1980s, industrial reforms had achieved substantial success in some areas. Industrial output was about twenty-five times that of 1952 (see List of countries by GDP sector composition). A wide range of modern industries had been established, and the country was one of the world's leading producers of coal, textiles, and bicycles. There were major plants in almost every key industry, and a strong effort had been made to introduce manufacturing into undeveloped and rural areas. Light-industry output of consumer goods had increased dramatically. In some cases, enterprises reduced operating costs, managers were able to exercise greater autonomy, and technical innovations were implemented to increase efficiency.

Despite these bright spots in the 1980s, overall results were disappointing to Chinese economic planners. Major problems included failure to reform the price system, interference of local cadres in the managers' operation of enterprises, and perpetuation of the life tenure, "iron rice bowl" system for workers. Rapid industrial growth made energy shortages one of the most critical problems facing the economy, limiting industrial enterprises and mines to 70 or 80 percent of capacity. According to China's energy planners, the country would have had to quadruple electricity production to meet the 'gross value of industrial and agricultural output' (GVIAO) target for the year 2000. For a quick increase in output, the industry emphasized short-term development of thermal power plants. In the long term China planned to rely on its vast hydropower potential and nuclear power to meet electricity demand.

In the 1980s large-scale, centrally controlled plants dominated manufacturing. These large plants were supplemented with many small-scale town and township enterprises, which accounted for significant percentages of national output of coal, construction materials, and leather products.