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In late 1978 the Chinese leadership began moving the economy
from a sluggish Soviet-style centrally planned economy to a more
market-oriented system. Whereas the system operates within a political
framework of strict Communist control, the economic influence
of non-state managers and enterprises has been steadily increasing.
The authorities have switched to a system of household responsibility
in agriculture in place of the old collectivization, increased
the authority of local officials and plant managers in industry,
permitted a wide variety of small-scale enterprise in services
and light manufacturing, and opened the economy to increased foreign
trade and investment.
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