Industrial Governance and Enterprise Management in China 1949–84

Abstract

China turned to state socialism after 1949 when the Communist Party took power.¹ In choosing socialism as a development strategy the Chinese government was following the central ideological tenet of socialism. This emphasized collective ownership and identity, in which the state and the Party claimed to represent the interests of the working class as a general collective, and therefore that the hierarchical control of organizations was legitimate. Instead of being motivated by profit, the people were to be motivated by moral and political rewards, and individuals were to render an adequate contribution to the collective effort (Bate and Child, 1987). These ideological principles were applied through a centrally planned economy, in which resource allocation and economic activities were coordinated by state planners (Andors, 1977; Lee, 1987; Schurmann, 1966).