In 1949, when the new republic was founded, China was a poor and weak agricultural country. Thanks to Mao Zedong and his comrades who were, at the very beginning of the new republic, all clear of the goal of building an independent and self-sufficient economic system so as to gain the core competitive competence in the world, China has become an initially industrialized and modernized country. Such an industrial and national economic system is the outcome of the efforts of Mao and the communist party and the government led by him. The successes and failures of those efforts clearly reflect features of this particular time.
According to those notes, until 1952, when the national economy recovered, industrial output of northeast China accounted for 110% of 1943. National output (35 major products) accounted for 126% of the highest annual national output. Products of light industry contributed most to output increase. The recovery of heavy industry was relatively slow and had to rely on imports. China imported 380,000 tons of steel for machine building in 1950, 420,000 tons in 1951, and 500,000 tons in 1952. Because of insufficiency of energy and raw materials, some products of light industry were under-produced. Productive capacity of matches accounted for only 30%, cigarettes 39%, and wheat flour 51%. See Xue (1952).
The management policy of “two participations, one reform and three combinations” has called attention of management experts at home and abroad. An Encyclopedia of Management published in Japan cited this policy in its first entry in section 1, chapter 1. See also Dai Maolin (1998).
In and before the time of his writing Properly Dealing with Contradictions among the People, Mao believed that classes always exist in human society, and there are contradictions and cooperation among classes. However, the theme of “taking class struggle as the key link” in economic construction betrayed his earlier and correct belief.