Read the passage and answer the question:

The economically backward communist China chose to sever its links with the capitalist world. It had little choice but to fall back on its own resources and, for a brief period, on Soviet aid and advice. The model was to create a state-owned heavy industries sector from the capital accumulated from agriculture. As it was short of foreign exchange that it needed in order to buy technology and goods on the world market, China decided to substitute imports with domestic goods. This model allowed China to use its resources to establish the foundations of an industrial economy on a scale that did not exist before. Employment and social welfare were assured to all citizens, and China moved ahead of most developing countries in educating its citizens and ensuring better health for them. The economy also grew at a respectable rate of 5-6 per cent.

Which of the following statements is correct?

Statement A- China privatized its Industries in 1982.
Statement B- China privatized its agriculture in  1998.

Neither of the statements is correct.

The correct answer is Option 4 - Neither of the statements is correct.

Statement A- China privatized its Industries in 1982.
Statement B- China privatized its agriculture in  1998.

Correction in the incorrect statement:

Statement A- China privatized its AGRICULTURE in 1982.
Statement B- China privatized its INDUSTRIES in  1998.

The rise of Chinese Economy:

By 1978, the then leader Deng Xiaoping announced the ‘open door’ policy and economic reforms in China. The policy was to generate higher productivity by investments of capital and technology from abroad. China followed its own path in introducing a market economy. The Chinese did not go for ‘shock therapy’ but opened their economy step by step. The privatisation of agriculture in 1982 was followed by the privatisation of industry in 1998. Trade barriers were eliminated only in Special Economic Zones (SEZs) where foreign investors could set up enterprises.