Thirty Years of Turbulence - Chinese Enterprises

作者：admin  点击次数：2  发布时间：2025-08-01

In this situation, the first macroeconomic regulation in China after the reform and opening up began in the third year after 1978.

Deng Xiaoping's ideas were very clear: to safeguard the central government's finances, take emergency braking measures, comprehensively reduce unplanned investment, borrow local government deposits, issue treasury bonds to enterprises and local governments, temporarily freeze enterprise owned funds in banks, and tighten bank loans. In 1981, infrastructure investment decreased by 12.6 billion yuan compared to the previous year, and the accumulation rate fell back to 28.3%, keeping the annual deficit within 3.5 billion yuan. The direct result of these measures is a significant decrease in investment enthusiasm in various regions, and projects negotiated with foreign countries are being shelved one by one, resulting in the scenes described in the beginning of this chapter's "Fortune". The second is to protect state-owned enterprises.

There has been controversy over how to protect state-owned enterprises. At that time, there were two voices in the economic community responding to the issue of diminishing pilot effects in state-owned enterprises. The proponents, represented by economist Xue Muqiao who participated in the overall planning of the reform at that time, believed that the decentralization and profit sharing reform had limitations, and advocated that the focus of the reform should be placed on "price management system reform" and "circulation channel reform", gradually abolishing the administrative pricing system, and establishing commodity and financial markets.