The second stage
The second stage was the “planned commodity economy” from 1983 to 1986.
In October 1984, galvanized steel coil prices the Third Plenary Session of the 12th CPC Central Committee passed the “The Central Committee Decision of the Communist Party of China on Economic System Reform”. For the first time, it clearly stated the theory of socialist planned commodity economy. “Determining the shovel to break the planned economy and the commodity economy. The traditional concept, a clear understanding of the socialist planned economy must be consciously based on the use of the law of value, is a planned commodity economy based on public ownership. “The four basic points of the Chinese economic system are determined.” Firstly, on the whole, China implements a planned economy, that is, a planned commodity economy, rather than a market economy that is completely regulated by the market. Secondly, the production and exchange regulated by the complete mountain market are mainly agricultural and sideline products, daily small commodities, and service repair industries. Labor activities, they play an auxiliary but indispensable role in the national economy. Thirdly, the implementation of the planned economy is not equal to the mandatory plan, the mandatory plan and the guiding plan are the specific forms of the planned economy. Fourthly, guidance planning relies mainly on the use of economic leverage, and mandatory plans must be implemented. But you must also apply the law of value.