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

Both statement 1 and statement 2 are true

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.