Which of the following statement is true?
Statement 1- China introduced reforms in phases. In the initial phase, reforms were initiated in agriculture, foreign trade and investment sectors.
Statement 2- In the later phase, reforms were initiated in the industrial sector. Private sector firms, in general, and township and village enterprises
Answer & explanation
Correct answer: option 3
Both the statements are true, as in agricultural reforms, the commune lands were divided into small plots and given to people. All the income was given to the tillers after a certain amount of tax deduction. Whereas, in industrial sector, those enterprises which were owned and operated by local collectives were allowed to produce goods.