The first stage went from 1953 to 1978 where China’s priority was heavy industry through the means of the centrally planned economy. This first stage can then be separated into 4 sub-sections:
Stage 1 Period 1 During the 1st period of the 1st development stage, China focused on the construction of 694 industrial projects through the first five-year plan from which, 156 were supported by Soviet Union. These were primary foundations laid by China to build technological support to restore its national economy |
Stage 1 Period 2During the 2nd period from 1958 to 1960, China applied a great step forward in terms of its industrialization strategy. This is where the government of China aroused huge funds in order to economically support industrial development. Originally, the hope was to make use of cheap labor however it ended up in economic decline
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Stage 1 Period 3The economic decline led the Chinese government to rethink its policies during the 3rd period from 1961 to 1965. Within these 4 years, China started developing a new strategy which focused on a balanced development of both agriculture and industry. This then led to China’s economic output being greatly increased
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Stage 1 Period 4From 1966 to 1978 during the fourth period, China applied a “three-front construction” strategy where China divided in three fronts known to be costal, central and western. Btu however, this resulted in many further differences between the light and heavy industry in it’s economic structure along with regional imbalance in the industrial production and distribution.
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