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These small, low-risk economic bodies, which have sprouted throughout China, are an important component of Deng Xiaoping's second revolution. They serve as manageable guinea pigs, where the authorities can tinker with flexible production lines or even try out such foreign devices as stockholding and mergers. "We have a saying," explains Shen Yuanlong, director of the Peking- based State Administration for Industry and Commerce, " 'A small boat can turn back more easily...

Author: /time Magazine | Title: Flourishing Collectives | 9/23/1985 | See Source »

...tale of Ju, the all too successful entrepreneur, exemplifies in a small * but revealing way some of the tensions and paradoxes created by the daring "Four Modernizations" policy that has been pursued since 1977 by China's leader, Deng Xiaoping. On the one hand, Ju's embarrassment of riches advertises the potential of free enterprise in China, where even the People's Daily, the Communist Party newspaper, has declared that "getting rich and buying consumer goods is not decadent--especially if it makes life more pleasant." On the other hand, the ostracism suffered by Ju highlights the difficulties of introducing...

Author: /time Magazine | Title: The Second Revolution | 9/23/1985 | See Source »

...party's legitimacy," says one government official, "will come from the success of its policies. As the country becomes stronger, so too will the party." As Leader Deng sees it, that means retiring many of the older officials and replacing them with better-educated, better-qualified young technocrats. Yet rebuilding the party remains an uphill struggle. Despite infusions of fresh blood, nearly half of its members have no more than an elementary education and at least 10% are illiterate. Many are unprepared to deal with directives from government and party headquarters that put a premium on efficiency and management skill...

Author: /time Magazine | Title: The Second Revolution | 9/23/1985 | See Source »

...highest levels, Deng has tried to ensure that his reforms will outlast him by weeding out opponents or gently moving them to the sidelines. In 1981 he eased out Party Chairman and Premier Hua Guofeng, Mao's choice for the succession, and installed in Hua's place General Secretary Hu Yaobang. The premiership, which Hua also held, went to Zhao Ziyang, the former governor of Sichuan. Last July, Propaganda Chief Deng Liqun, who had missed no opportunity in recent years to reaffirm "the purity of Communism," was ousted from his post. Deng Xiaoping has defanged other neo-Maoists, or "whateverists...

Author: /time Magazine | Title: The Second Revolution | 9/23/1985 | See Source »

This month's party conference is expected to consolidate that process by strengthening the position of the younger Deng supporters of the "third echelon," including Hu Qili and former Youth Leader Wang Zhaoguo. Overall, these personnel changes have been accomplished with notably less of the factional fighting and intrigue that have attended so many of China's ideological transitions in the recent past...

Author: /time Magazine | Title: The Second Revolution | 9/23/1985 | See Source »

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