Planned Production Is Primary, Free Production Supplementary

You Lin

Chinese Economy, 1993, vol. 26, issue 3, 15-31

Abstract: In 1956 when our socialist transformation of private ownership of the means of production had just been completed fundamentally, Comrade Chen Yun put forth the following views to improve our production planning: "While the major part of industrial and agricultural products in the country should be produced in accordance with the plan, there should, at the same time, be a part that is freely produced in accordance with market changes and within the confines of the state plan. Planned production is primary, and free production, in accordance with market changes and within the confines of the state plan, supplements planned production." Earnestly studying this idea of Comrade Chen Yun's has great meaning as we explore how to reform the planned management structure and how to view the role of market regulation under a planned economy. In my view, the above opinion is appropriate both today and for a relatively long time into the future.

Date: 1993
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