ABSTRACT
Two cycles of reform and retreat during the Deng era demonstrated the capacity of the central state to initiate a general transition from planned economy to market principles in the cotton sector. However, both attempts at reform were quickly abandoned after new economic problems emerged in the wake of liberalization. Therefore, it can be argued that the factors identified for reform initiation – oversupply of cotton, confidence in market forces on the part of central leaders in particular – were not yet sufficient conditions for the sustainability of the reform drive. What accounts for the hardened resolve to push reforms through in the third attempt?
