 In
1978, China introduced the household contract responsibility
system, linking remuneration to output. In 1985, a second
reform was carried out, which eliminated the state monopoly
of purchase and marketing of agricultural products, and implemented
the system of purchase according to contracts. The reform
made the market play a basic role in adjusting the supply
and demand situation for agricultural products and allocating
resources, and aroused the peasants' creativeness and enthusiasm
for production. In 1999, the outputs of grain, cotton and
oil-bearing crops were 508.39 million tons, 3.83 million tons
and 26.012 million tons, respectively, increasing of 66.7,76.7
and 400 percent over 1978; the output of meat amounted to
59.61 million tons, or seven times that of 1978; and that
of aquatic products 41.224 million tons, and increase of 8.8
times over 1978. Now the annual average quantities of meat,
eggs and mild per person
are 50,17 and 6.6 kg, which are close to or surpass the world's
average. In addition, the rise of township enterprises has
promoted the all-round development of the agricultural economy.
In 1990, the township enterprises earned 13 billion US dollars
form exports, about 23.8 percent of the national gross value
of foreign exchange earned form exports. The per capita net
income of peasants increased from 134 yuan in 1978 to 2,210
yuan in 1999. China's township enterprises have developed
on the basis of the handicrafts industry and the processing
of agricultural products and by-products. They have flourished
since 1978, becoming the mainstays of the rural economy. In
1999, 2,500 billion yuan in industrial output value was produced
by the township enterprises, and the value of exported commodities
came to 720 billion yuan. Now there are more than 20 million
township enterprises in China, having 125 million employees.
Township enterprises are involved in industry, agriculture
and transportation, along with the building, commerce, and
catering trades. They produce a variety of goods, from products
needed in agriculture to daily necessities, foodstuffs, sideline
products and light industrial materials. Many of these products
are exported.
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