Private Enterprises and Local Government in Rural China

  • Susan Young
  • Gang Yang
Part of the Studies on the Chinese Economy book series (STCE)


The revival and promotion of private industry and commerce has been one of the most controversial of the reforms introduced in post-Mao China. After 30 years of working towards its total eradication, it was hard for the CCP to accept private enterprise as an integral part of socialist development. The pattern of private-sector policy formation, therefore, was one typical of many difficult reforms: private business was first allowed discreetly, at the local level, and worked into official policy only after it had proved itself and become a fait accompli. Although private enterprises clearly had some strong supporters among China’s top leadership, there were differences as to how far they should be allowed to develop. For many years only small family-type concerns were officially allowed, and although larger, capitalistic businesses were legitimised in 1988, the private economy is still referred to in official documents as a ‘supplement’ to the publicly owned economy, to be constrained by discriminatory policies and regulations.


Private Sector Local Government Private Enterprise Private Business Individual Business 
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Copyright information

© Christopher Findlay, Andrew Watson, Harry X. Wu 1994

Authors and Affiliations

  • Susan Young
  • Gang Yang

There are no affiliations available

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