Yasheng Huang's Article: The Development Of The Chinese Economy

The article was written by Yasheng Huang in 2012. The writer shows how Chinese economy started. According to him, in order to understand how Chinese economy started it is important to understand it rural development. China growth started with rural entrepreneurship and significant reforms but because of change in leadership in 1990s such reforms were reversed and these has affected the private sector. He further said that the rural industry started with the coming of Township and village enterprise. According to him Many Chinese scholars argued that Township and village enterprise are owned and controlled by the local government rather than private entrepreneurs.
The writer showed that from the beginning township and village enterprise have …show more content…
Private sector’s success was a result of Township and village enterprise. China’s economy started not only because farmers were very effective in producing grains but because reforms that were created has allowed Chinese peasants to move to more value-increase activities such as industrial production. Township and village enterprise has played an important role in the process. By doing so they have increased rural income, involved rural surplus labour and added to the drop in th e rural income gap in the 1980s. They have also added competition in the Chinese economy. Rural businesses was the only means of to the state owned enterprises at the time when foreign firms were barred and urban private firms were small.the writer states that many scholars have viewed township and village enterprise as public in nature. Many western scholars viewed township and village enterprise as being originated from ‘’commune and brigade enterprises established during the Great Leap Forward(1958-1961) and therefore should be seen as collective insititutions. However according to the writter’s view it is incorrect. Based on records from (Ministry of Agriculture 2003). They were about 1.5milloin commune and brigade enterprises by 1978 but in 1985 the number of township and village enterprises has increased to 12million. The great majority of township and village enterprise has nothing to do …show more content…
But on the other hand (Chang and Wang 1994) have argued that Township and village enterprises are controlled by the Township and village government not its owners. They argued that township and village enterprises are public rather than private. They further argued that in the statist nature of the Chinese system makes it difficult for the owners of the township and village enterprise to get key resources such as