Consider the following statements about China’s reforms introduced in 1978:
(A) Under dual pricing, fixed quantities were traded at market prices and the rest at prices fixed by the government.
(B) Households could keep all income from the land after paying stipulated taxes.
(C) In the later phase, reforms were initiated in the industrial sector.
(D) Township and village enterprises were owned and operated by the central government.
(E) State Owned Enterprises were made to face competition.
Choose the correct answer from the options given below:
Answer & explanation
Correct answer: option 3
The correct answer is Option (3) → (B), (C) and (E) only
(A) Under dual pricing, fixed quantities were traded at market prices and the rest at prices fixed by the government. — Incorrect. It was the reverse: fixed quantities at government prices and the rest at market prices.
(B) Households could keep all income from the land after paying stipulated taxes. — Correct. Households kept all income after paying the fixed taxes.
(C) In the later phase, reforms were initiated in the industrial sector. — Correct. Industry came in the later phase; agriculture came first.
(D) Township and village enterprises were owned and operated by the central government. — Incorrect. They were owned and run by local collectives.
(E) State Owned Enterprises were made to face competition. — Correct. Government-owned SOEs had to face competition.
NCERT (2026-27): “8.2 Developmental Path—a Snapshot View … In agriculture, for instance, commune lands were divided into small plots, which were allocated (for use not ownership) to individual households. They were allowed to keep all income from the land after paying stipulated taxes. In the later phase, reforms were initiated in the industrial sector. Private sector firms, in general, and township and village enterprises, i.e., those enterprises which were owned and operated by local collectives, in particular, were allowed to produce goods. At this stage, enterprises owned by government (known as State Owned Enterprises—SOEs), which we, in India, call public sector enterprises, were made to face competition. The reform process also involved dual pricing. This means fixing the prices in two ways; farmers and industrial units were required to buy and sell fixed quantities of inputs and outputs on the basis of prices fixed by the government and the rest were purchased and sold at market prices. …” |