ABSTRACT
It was during the First Five-Year Plan (1953-7) that the operation of the typical Chinese state industrial enterprise came nearest to its Soviet counterpart (including soft budget constraints). But even then the Chinese enterprise differed from the latter in significant ways. Thus manpower was allocated to the Chinese enterprise, virtually all profits were transferred to the state budget and management bonuses were much less important. The danwei (workplace) provided housing, health and social welfare services and the party took an increasingly important role in running the enterprise. Chaotic conditions prevailed during the Cultural Revolution.
