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By Xun-Hai Zhang

Seeks to research China's business reform within the Nineteen Eighties by means of analyzing the chinese language bicycle undefined. It units the alterations seeing that 1978 into old viewpoint via giving an account of the improvement of this industry.

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Extra info for Enterprise Reforms in a Centrally Planned Economy: The Case of the Chinese Bicycle Industry

Sample text

Thus, the mark-up amounted to about 47 per cent of the production cost in ex-factory price terms, and about 85 per cent of the production cost in retail price terms. We do not know exactly the percentage in other industries, but according to a report given by the State Bureau of Price Management, the Pre-reform Development and Management 33 general rule was that products to be sold to the agricultural sector were permitted a mark-up at about 5 to 10 per cent, those to the industrial sector at about 10 to 15 per cent, and products destined for immediate purchase by consumers at about 20 to 30 per cent, at ex-factory prices.

Firstly, the 28 Enterprise Reforms in a Centrally Planned Economy direct control through 'unified employment and assignment' exercised a virtual monopoly over labour allocation. As the economy became more complex, it exceeded the regulative capacity of labour bureaus, central or local. The span of such control was too broad and the system too rigid. Often, the factory could not get the kind of workers it required, but it could not refuse to accept the ones it did not need either. As two Chinese economists have pointed out, of all aspects of resource allocation - capital, materials, and labour - 'the allocation of labour resources is by far the furthest from the market mechanism.

Workers' congresses, or rather 'representative congresses of workers and staff' have existed at various times in Chinese industry. The congresses are elected by the workers and staff (including managers) of an enterprise and perform a consultative role in enterprise management. At the congress, the manager gives a report and representatives express their views on enterprise management, production plans, personnel affairs and workers' welfare and make rationalisation proposals. However, in the 1950s and the early 1960s, most of the congresses were held only for the sake of formality and the proposals remained on paper.

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