Thirty Years of Turbulence - Chinese Enterprises

作者：admin  点击次数：5  发布时间：2026-03-15

The dual track system means that there are two prices for a means of production, one is the "planned price" controlled by the state, and the other is the market-oriented "unplanned price", with the latter having a much higher cost than the former. The purpose of this distorted pricing system is to protect the advantages of state-owned enterprises in raw material procurement. At the same time, the country can continuously adjust the sales ratio of planned and unplanned goods according to market demand. For example, around 1985, the planned and unplanned ratio of steel was 78:22, coal was 92:8, oil was 83:17, cement was 64:36, food was 73:27, clothing was 59:41, and durable consumer goods was 48:52. From these proportions, it can be seen that the state's control over raw materials is far greater than its control over daily consumer goods. The "dual track system" has distinct characteristics of planned economy, which has played a certain role in suppressing price surges and inflation, but has also become a fundamental problem that has plagued the growth of private enterprises for a considerable period of time.