In the 80s of the 20th century, the whole of China was undergoing great changes.
After nearly 30 years of industrialization, the advantages and disadvantages of the planned economy have been exposed to the Chinese people.
The advantage of the planned economy is that it can quickly concentrate the national forces and rescue China from the situation of poverty and whiteness.
The disadvantage is that China's industrialization development can only be concentrated in cities because of the era and technology.
Rural areas, with huge resources and populations, have not benefited from the dividends of development in industrialization. On the contrary, because China was facing the siege of the two great powers of the United States and the Soviet Union at that time, China's focus on development at that time could not bring economic gains, and brought improvement to people's lives, heavy industry, military industry.
This was an inevitable consequence of the great threat China faced at that time.
Later, with the easing of Sino-US relations, China finally got rid of the dilemma of being hostile by the United States and the Soviet Union at the same time.
On February 5, 1972, the CPC Central Committee and the State Council approved the "Report on the Import of Complete Sets of Chemical Fiber and Chemical Fertilizer Technology and Equipment" issued by the State Development Planning Commission. Subsequently, the State Development Planning Commission further proposed a plan to import $4.3 billion of complete sets of industrial equipment and single machines from abroad.
The plant was built in 1975 and officially put into production in 1976.
This situation marks that the country has changed from dealing with war to solving people's livelihoods. A landmark event consistent with this situation was the return of Comrade Xiaoping to Beijing in 1972 and began to lead economic work.
At that time, social team enterprises (later renamed township enterprises) had already appeared in the vast rural areas of China.
Township enterprises appeared much earlier than most people think in the 80s.
In 1957, after the successful realization of the first five-year plan, the mainland showed a good situation of economic prosperity and improvement in people's lives.
However, due to the slow development of side businesses and diversification, although grain production has increased year after year, farmers' incomes have grown slowly.
In the subsequent campaign of people's communalization and large-scale iron and steel, many people's communes organized tens of millions of peasants to invest in small iron smelting, small mines, small coal kilns, small agricultural machinery construction, small cement, food processing, transportation and other enterprises.
At the same time, many small side factories that had been established by the former agricultural cooperatives were converted into commune industries without compensation.
However, at that time, due to various pressures at home and abroad, township enterprises did not achieve great development. At that time, only 9% of the agricultural population was employed in township enterprises.
With the situation at home and abroad in China has improved significantly. Especially after China solved the problem of food and clothing in 1983. The peasants' pursuit of a better life has further promoted the development of township enterprises.
Although the People's Commune was abolished in 1983, the peasants were organized over the course of decades of construction. In the early days of reform and opening up, due to the strict dual policy of urban and rural implementation by the central government. Farmers were not allowed to enter the city at will. In order to increase their own income.
One township enterprise after another was born in the vast countryside of China.
Township enterprises did not rely on the central government to provide a lot of money, which saved a lot of money in China, which was not rich at that time.
Most of these enterprises have hundreds of people and a few small people, and most of their fixed assets are only tens of thousands or hundreds of thousands of yuan, and these funds are the meager accumulation of decades in rural New China.
Although some enterprises do not have funds, they have also begun to develop greatly by relying on the resources and human resources of their own communes.
After the reform and opening up, these township enterprises attacked in a big way, quickly occupying part of the market share of consumer goods with low-priced, low-quality products.
At that time, there were no talents in township enterprises, so they went to the city to invite retired talents from state-owned enterprises. Without equipment, they went to the city to find some second-hand equipment that had been eliminated by state-owned enterprises.
Although the township enterprises are of low quality, poorly equipped, weakly funded, small in number, and even less "air force support" from bank loans, those enterprises march in the posture of ants. Step by step to occupy the market share.
In the strong market demand of building materials, metallurgy, winemaking, clothing, textile, chemical and other industries have blossomed in an all-round way, and gradually formed a major force that cannot be ignored in China's economic sector.
In about 16 years from 1980 to 1996%, rural industrialization created a staggering 130 million jobs, accounting for 1/3 of agricultural employment, half of the surplus labor force in agriculture, and achieved exports of 600.8 billion yuan, with a total output value of 1.8 trillion yuan!
In 1980~1988, the share of the national light industry product market supply capacity increased, the contribution of township enterprises accounted for 32%, in 1988 the output of major consumer goods, township enterprises provided electric fans accounted for 45.5% of the country, silk fabrics accounted for 68.7%, nylon accounted for 52.1%.
By 1997, township enterprises paid 17.7 percent of the total national fiscal revenue and 35.8 percent of the country's local revenue.
In addition to their contribution to fiscal revenue, township enterprises also play a role in feeding back to the countryside. Especially at that time, agricultural taxes were still in place, and welfare construction in the countryside was hardly established. This way of feeding back is tantamount to a long drought for the increasingly dry countryside.
In the stage of rapid development of rural industrialization, about one-third of farmers' income comes from township enterprises. During this period, farmers' incomes almost doubled every five years, and their contribution to GDP exceeded 50%, once becoming half of the supporting China's economy!
It can be said that from the early 80s of the 20th century until the mid-90s, rural industrialization was the core driving force of China's economic growth, and the prosperity and new purchasing power of rural areas injected strong vitality into the urban economy. Focusing on household appliances and daily consumer goods, a consumer revolution that lasted for more than 10 years broke out.
The smooth progress of rural industrialization has increased the savings of peasants. When farmers exchange these savings with the city's industrial goods. China's economy has been revitalized.
This unprecedented industrialization phenomenon was not expected by the leaders of reform and opening up and foreign observers.
It's like a reincarnation. The victory of the Chinese revolution a few decades ago was achieved by relying on the countryside. This is also something that almost everyone did not expect. Because. At that time, China was an agricultural country dominated by peasants, and without the support of peasants, the Chinese revolution could not have won at all.
In the 80s of the 20th century, farmers once again pushed China to the climax of industrial construction in their own way.
The industrialization of rural areas is a perennial problem. Because if the profits from industrialization do not reach the peasants, China's bottom face will not improve. There will inevitably be a series of problems such as the gap between the rich and the poor, the exodus of rural people, and the left-behind children.
However, with the development of society, the advantages of township enterprises in the early stage of reform and opening up have been lost. Township enterprises, once flexible and mobile, have lost room for manoeuvre in China.
Because most of the township enterprises at that time were engaged in labor-intensive processing enterprises. Thin margins and low thresholds. When China's urban industrialization process is accelerating, at the same time, rural enterprises will inevitably fall into vicious competition.
Especially after the 1998 Asian financial crisis. China's foreign trade has experienced a serious crisis of overproduction. A large number of township enterprises have not survived this difficulty.
With the decline of township enterprises. The peasant groups that once provided huge savings for China's economy are shrinking. As a result, when China's consumer market began to cool rapidly, corporate profits shrank. The weakness of commodity trading has led to a weakening of the money supply.
In the final analysis, China's industry at the time was too dependent on outsiders. And Chinese goods are not competitive in foreign markets. Relying only on brutal involvement, the last harm can only be the people themselves.
However, in fact, it was not only township enterprises that fell into crisis at that time. The whole of China is in a crisis of deflation.
The labor productivity of society cannot be further improved. As a result, the consumption level of Chinese people has stagnated or even decreased. Since October 1997, China's total retail price index has been falling for 27 consecutive months, while the consumer price index has been falling for 22 months from March 1998.
The township enterprises that support China's industrialization have insufficient stamina. China desperately needs to find another opportunity to help China achieve a second take-off.
In 2001, China joined the WTO. Finally brought this opportunity to China.