The Development History of the Market Economy System (IV)

In accordance with this basic principle, in September 1985, the “Proposal of the Central Committee of the Communist Party of China on Formulating the Seventh Five-Year Plan for National Economic and Social Development” further outlined the basic outline of China’s economic system reform, “establishing a new socialist economic system.” In addition, mainly to grasp the three aspects of mutual contact: Firstly, further enhance the vitality of enterprises, especially large and medium-sized enterprises under the ownership of the whole people, so that they truly become relatively independent, self-employed, self-financing producers and operators of goods; Secondly, further develop the socialist planned commodity market and gradually improve the market system. Thirdly, the state-to-business management gradually shifts from direct control to indirect control, mainly using economic and legal means, and taking necessary administrative means to control and regulate economic operations.galvanized square tubing suppliers

The state has different conditions for different sectors and different ownership enterprises. In terms of price, credit, taxation, and labor wages, both the planning system and the market system coexist. The different ownership enterprises and departments are planned or market-constrained. The degree is very different. Therefore, the status of enterprises is unequal, the competition is unfair, the value is not uniform, the system is not perfect, the behavior is not standardized, and the bitterness is uneven. And with the central government’s decentralization of the local government by means of financial contracting, the previous central plan has changed mainly for local government plans. Local governments have protected local markets for local interests, and there has been a tendency to local protection and regional division.


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