Why Should China Implement the Policy of Converting Enterprises to Management by the People in One Single Leap "Across the River"?

Huang Youguang and Xiaokai Yang

Chinese Economy, 1989, vol. 23, issue 1, 64-81

Abstract: China's economic reforms have attained considerable success in the countryside, and yet the reforms of the urban system have been beset by many difficulties. This essay attempts to analyze why the reform has been plunged into the dilemmas it faces, and to discuss why we believe that the only way to attain thorough success in the reform is to implement the conversion of state-run enterprises to civilian managementâthat is, to let them be managed by the people. We would also like to discuss critically some of the concerns and worries that people have about this conversion, and we would like to propose a specific process for this conversion reform. We suggest that preparations should be made for several years, after which we should take one leap and cross the river at once.

Date: 1989
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