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By Xun-Hai Zhang

Seeks to research China's commercial reform within the Nineteen Eighties by means of interpreting the chinese language bicycle undefined. It units the alterations when you consider that 1978 into ancient standpoint by means of giving an account of the advance of this industry.

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

Sample text

There were two bicycle companies, one was the Shanghai Bicycle company, formed in 1957, another one was Guangzhou Bicycle Company, formed in 1966. Each company had one big factory producing main bicycle parts and assembling complete bicycles, and several small factories specialised in producing other parts. Generally, all bicycle parts and components could be produced within the company. This organisation was a kind of industrial corporation and had certain advantages over the factories producing complete bicycles but with some parts and components supplied from outside.

But the CBF was exceptional in the Chinese bicycle industry: as we mentioned before, the industry was highly profitable, and most of the factories in the industry were making profits. However, even in this industry, some factories still run losses. 8 million yuan, which accounted for about 5 per cent of the total profits and taxes generated by the bicycle industry in 1978. Price-setting Before 1978, it was the State Bureau of Price Management and its lower-level correlates which had the responsibility for setting price.

Thirdly, there was often confusion among the managers and Party branch secretaries at the lower level; sometimes they did not know which instructions to follow, the ones from the factory managers or the ones from the secretaries of the committee. In the case of contradiction, they often 22 Enterprise Reforms in a Centrally Planned Economy did not execute orders from the managers, waiting to consult with the secretary of the committee. The appropriate division of authority between the managers and the Party secretaries at various levels in the factory remains an unsolved serious problem even today, though some important measures have been taken to tackle it since 1978.

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