Question

Discuss the industrial policy of the Republic of China after 1949.

Answer 1

The industrial policies of the Republic of China after 1949 were as follows:

1. Soviet-Style Planning: China adopted a Five-Year Plan model (starting in 1953), focusing on heavy industries like steel, coal, and machinery.
2. State Ownership: Most industries were nationalised; production and pricing were centrally controlled.
3. The Great Leap Forward: Included the establishment of people’s communes and the production of steel in backyard furnaces, which ultimately failed.
4. Modernisation Era (Post-1978): Shifted towards light industries, technology, and exports. Special Economic Zones (SEZs) were created to attract foreign capital and modernise production.