At the time of his death, China was in a political and economic quagmire. The Great Proletarian Cultural Revolution and subsequent factional fighting had left the country much poorer, weaker, and isolated than it had been in Scores of capable party officials, bureaucrats, intellectuals, and professionals were languishing in prison or laboring in factories, mines, and fields.
In steel production was almost 19 million tons, up from 1. But the Great Leap Forward caused production to fall back to 8 million tons in After recovering and reaching a peak of The Ten-Year Plan called for an increase in steel production to 60 million tons per year by and to million by Other plants were also to be built.
China relies very heavily on coal for energy and the Ten-Year Plan called for doubling coal production to million tons per year through the creation of eight new mines. China at the time of the formulation of the Ten-Year Plan was relatively weak in the use of electrical power.
The Ten-Year Plan called for the development of 20 hydroelectric power plants and 10 other types of power plants.
In China was still a predominantly agricultural economy but the government had not supported institutional and technological measures to increase productivity and, as a consequence, per capita production of grains had remained at levels.
One important side-effect of this program is that if it worked there would be million workers who would be released from farming and for whom the government would have to make provisions for in other sectors. The institutional structure was modified to encourage higher production through individual initiative and more flexible production arrangements.
Commune farmers were encouraged to pursue sidelines of production on small plots. Capital was definitely scarce at the beginning of the Ten-Year Plan.
The government had been relying very heavily upon the revenue it gained by requiring the sale of agricultural products to the State at artificially low prices and selling them at a higher price. But this policy did not encourage productivity in agriculture and agricultural development stagnated.
The percapita output of grains, as stated previously, was not any higher in than it was in The State Enterprises, instead of being a source of profit for the State, required large subsidies necessitating the milking of agriculture.
For the Ten-Year Plan the government sought other sources of revenues. One source it tried to develop was tourism. Hotels and other tourist facilities were built and there was some success, but notably the vast majority of the tourists were overseas Chinese.
In desperation China turned to encouraging foreign investment as a way of financing the development projects. German and Japanese companies provided the capital for major projects in return for a share of the benefits.
China also reversed its policy concerning foreign loans. China in had a serious shortage of technical personnel. The Cultural Revolution had disrupted the system of higher education for about twelve years.
For a nation of one billion people sixty thousand is a miniscule amount. There is even more of a shortage of middle level technicians and skilled workers.
It was not possible to sustain this level of investment financially or technically. The site chosen by the Chinese government planners was in swamp land on the edge of the Chang Jiang Yangtze River.
The swampy character of the land required hundreds of thousands of steel pilings be driven into the ground before the steel complex could be built. After construction started in it was discovered that the electrical power supply in the area was inadequate for the steel plant and the site was not accessible by the ships that were to bring iron ore from Australia and Brazil.
The government stopped construction on the second stage leaving the Japanese firm which had agreed to build the steel plant in financial difficulty. The site was found to be at risk for earthquakes. Another planned development was located in the city of Wuhan.
It was to process raw steel into higher quality steel but it was found to require so much electricity that if it operated there would be no power left for anything else in the province.
But even if there had been adequate power the area could not supply an adequate amount of the raw steel for its operation. Hua Guofeng announced in June of a period of adjustment, reconstruction, consolidation and improvement for the economy.
Priorities were shifted, away from heavy industry toward agriculture and light industry. The Ten-Year Plan target for steel production was cut from 60 million tons to 45 million.The Great Proletarian Cultural Revolution was a decade-long period of political and social chaos caused by Mao Zedong’s bid to use the Chinese masses to reassert his control over the Communist.
Thousands go to Tiananmen Square after the death of Zhou Enlai, with demonstrations that indirectly implicate Mao Zedong for his role in the Cultural Revolution. Yet he still cannot be.
After Mao Zedong Summary. Mao remained in undisputed control of China until his death in After Mao's death there was a power stuggle, which saw the fall of Mao's 'Gang of Four' supporters, and the restoration of Deng Xiaoping, who followed a more moderate line.
Economic and Political Reform in Post-Mao China Since the death of Mao Zedong in and Deng Xiaoping's second return from disgrace in , China has been in the middle of a great transformation economic system that also reflected regulation of supply and demand by the.
Mao Zedong: Mao Zedong, Nevertheless, looking at the whole period from the foundation of the CCP in to Mao’s death in , one can fairly regard Mao Zedong as the principal architect of the new China.
the consequences of those changes were chaos and economic disaster. By the winter of – Economic Development in China After Mao: In his New Year's Message of Mao warned against emphasizing material progress. By April Deng had been dismissed from all his official posts.
The Cultural Revolution had disrupted the system of higher education for about twelve years.