ABSTRACT
The imbalance among agriculture, light industry, and heavy industry, as well as the excessive preoccupation with capital accumulation were detrimental to personal consumption. Rural reform consisted of several changes. These included increased financial incentives to peasants, decentralization of planning, and, most important, changes in agricultural organization built around the agricultural responsibility system. Since the adoption of the policies approved during the Third Plenum in 1978, China has undertaken a bewildering variety of experiments and reforms in industrial enterprises. In the summer of 1984, China extended the concept of the Special Economic Zone to fourteen coastal cities to accelerate foreign trade and investment. Economic deregulation required financial and budgetary reform. Instead of receiving capital grants from and remitting all their profits to the state, autonomous enterprises were required to borrow from banks and pay taxes. The individual income tax law applied to everyone residing in China for one year or more.
