The Working of Communist China's Five Year Plan

Abstract

ON December 24, i952, Premier Chou En-lai announced the Chinese Communist Government's decision to undertake a Five-Year Plan for the economic development of China.1 The passage of years from the Communist seizure of power to this announcement reflects a realization on the part of the Chinese Communist leaders that they would first have to consolidate their political power, rehabilitate their war-devastated economy and establish their control over it. The achievement of these goals was scheduled for the end of I952, and by the beginning of that year most of the basic tasks were completed. The Communists' political position was secure, the countryside had for the most part been pacified and the possible elements of future political opposition, the bourgeoisie, thoroughly discredited. The Korean War, especially, provided a convenient excuse for ever-tightening political control and centralization of power. Economically, land reform was practically completed and the increasing series of government administrative controls had expanded Communist authority outward over the various sectors of the economy. To finish the basic tasks, it was necessary during I952 to gain mastery only over the business and commercial elements and to secure the required foreign aid. In January I952 the Chinese Communists instituted two campaigns designed to intimidate and weaken the business and commercial interests and thus secure for the State control over these sectors of the economy which would have to play such an important part in any development program. Known as the three anti and the five anti campaigns,2 these came to a close in May, by which time the govern-