ABSTRACT
Modernization in China must proceed from the premise that the country has an overgrown population and an underdeveloped economy but is richly endowed in natural resources. Modernization of the national economy calls for developing heavy industry and transportation. In the semifeudal and semicolonial old China, the economy was so underdeveloped that production in the country-side was primitive, and production in the cities was rudimentary. According to Marxist theory, a socialist economy is based on socialized, large-scale production, and its prerequisite is a fully developed commodity economy. But the rural commodity economy and the urban socialized production are underdeveloped, and our economic management system must be restructured so as to be conducive to developing a commodity economy based on large-scale production. Economists in Hong Kong expressed their concern about the economic reform in China. A national economy is an integral whole, and fragmentary reforms offer no comprehensive solution.
