Which of the following is true in regards to the Chinese "Economic reforms",1978?

Under commune system, individuals were allowed to keep all income from the land after paying stipulated taxes.

The Chinese reforms were initiated in 2 phases:

• In the initial phase reforms were initiated in agriculture, investment sector and foreign trade. Under commune system, all the income was given to the individual after deducting certain amount of taxes.
• In the later stage the reforms were initiated in the industrial sector.