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China and CapitalismA History of Business Enterprise in Modern China$
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David Faure

Print publication date: 2006

Print ISBN-13: 9789622097834

Published to Hong Kong Scholarship Online: September 2011

DOI: 10.5790/hongkong/9789622097834.001.0001

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The Responsibility System and Enterprise Reform

The Responsibility System and Enterprise Reform

(p.65) 5 The Responsibility System and Enterprise Reform
China and Capitalism

David Faure

Hong Kong University Press

This chapter discusses economic reforms undertaken in 1979 under the leadership of Deng Xiaoping. It first discusses the responsibility system and its impact in the agrarian sector. It then describes the issue of enterprise autonomy which dominated the state industrial reforms. Finally, it discusses the measures that were introduced by the Chinese government to maintain control while it allowed enterprise managers greater flexibility in making their own decisions. These measures include bankruptcy law, enterprise associations, and the crossholding of shares by state enterprises.

Keywords:   economic reforms, Deng Xiaoping, responsibility system, agrarian sector, enterprise autonomy, industrial reforms, bankruptcy law, enterprise associations, state enterprises

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