Thirty Years of Turbulence - Chinese Enterprises

作者：admin  点击次数：62  发布时间：2025-08-05

In January 1981, the State Council issued two emergency documents to crack down on speculation and smuggling. The first one was the "Directive on Strengthening Market Management, Cracking Down on Speculation and Smuggling Activities" on the 7th, which stipulated that "individuals (including private partnerships) are not allowed to sell industrial products without the approval of the industrial and commercial administrative department", "rural community collectives can traffic in surplus second-class and third class agricultural and sideline products that are not purchased by the state after completing national procurement tasks and fulfilling purchase contracts with nearby communities. It is not allowed to sell first class agricultural products", and "private purchases of large transportation vehicles such as cars, tractors, and motorboats are not allowed to engage in trafficking". Subsequently, on the 30th, the State Council issued the "Several Provisions on Adjusting the Industrial and Commercial Tax Burden of Rural Social and Team Enterprises", which clearly stated that "in order to restrict the competition for raw materials with large and medium-sized advanced enterprises, the provision that social and team enterprises are exempt from industrial and commercial tax and industrial and commercial income tax for two to three years in the initial stage of establishment will be treated differently according to different situations... Any social and team enterprise that competes for raw materials with advanced enterprises of the same size and has more profits, whether newly established or existing, will be subject to industrial and commercial income tax in accordance with regulations. These two documents have a stern tone, detailed measures, and are required to be published and reported on the front pages of major media outlets. For a time, 'cracking down on speculation and profiteering' became the most important economic movement of the year.