Trends in Chinese enterprise management, 1978-1982

Economic reforms in relation to industry have passed through three phases, centred on (i) expanded autonomy for experimental enterprises in 1978-1980, (ii) 'economic responsibility systems' in 1981-1982, and (iii) 'consolidation' particularly of large enterprises from 1982. While limited in scope, the reforms to date have had a significant impact on management practices. In addition there have been moves towards greater industrial democracy, involving the election of managers and workers' congresses. In practice, however, the degree of democracy is limited and varies widely between plants and regions. Another aspect of change has been a greater emphasis on the smaller urban collective enterprises. Overall reform policies face substantial inertia, a half-way house which may lead to worse long-term economic problems than either more rigid planning or further reform.