CRI听力：The Development of Private Economy

B: Welcome back to Listeners' Garden. I'm AE.

A: And I'm LPC.

B: In today's review of China's reform and opening up drive, we'll take a look at the development of the private economy in the 1980s.

A: The private sector has become an important part of China's economy. Private enterprises now account for 60 percent of the country's total number of companies, and contribute one-third of the domestic tax revenue. But 30 years ago, the private sector was all but nonexistent in China.

B: At that time, China was dominated by the state-owned economy. People doing private business were considered to be practicing capitalism, which was prohibited.

A: When the reform policy was adopted, Party leaders began reexamining the structure of ownership. The private sector was no longer denounced as an evil of capitalism, but was regarded as a necessary supplement to the public economy.

B: In 1980, the government published a document permitting a private economy to develop in order to stimulate the market, revive the economy and increase employment.

A: Following that, the state promulgated a string of polices to support, assist and guide the development of the private economy.

B: These policies loosened the restrictions on the private economy and encouraged some daring individuals to become the vanguards of private business. The birth of an individual economy paved the way for the development of the private sector in China.

A: 48-year-old Zhang Huamei from eastern China's Zhejiang province was among the first people to engage in private business. Her special experience gave her name a place in the history of China's reform and opening up.

B: On Dec 11, 1980, when Zhang Huamei was 19, she received China's first individual business license from the Wenzhou Industrial and Commercial Department.

A: At that time, Zhang Huamei couldn't imagine that she would later be regarded as the first self-employed entrepreneur in China.

"When I got the license, I didn't know that it was the first license China had issued for a privately-owned business. More than 1,000 people in the city followed me to get individual business licenses. I was just lucky to get the very first one."

B: Today, Zhang Huamei runs her own company in Wenzhou. But 30 years ago, she couldn't find a job in a state-owned company and had to stay at home. To support herself, she decided to do something adventurous — become a street vendor.

A: In 1979, Zhang Huamei set up a stall near her home selling necessities like buttons, elastic cords, watch straps, needles and thread.

B: At that time, due to a lack of relevant policies, it was still considered illegal for people to conduct private business. Vendors risked being fined by state departments.

A: Then came the news that the state had introduced new policies to support the development of the individual economy. Zhang Huamei was told that she should get an official permit to legalize her business.

B: After filling out the application form, Zhang Huamei received an official license for her business, the first of its kind in China, at the end of 1980.

“I was very happy to get the license. It meant my business was legal. I didn't need to hide from government officials in fear of being fined or having my goods confiscated. I have since set my mind to rest and begun expanding my business step by step."

A: Today, running a business of one's own is the dream of many ambitious people. But at the beginning of the reform, doing private business was the last choice of urban dwellers.

B: Yes. People at that time still craved secure jobs in state-owned enterprises. Holding an iron rice bowl, or having a life-long job, was enviable, while doing private business was considered indecent and was looked down upon.

A: But things changed for the better as the economic reform progressed. In Dec 1982, the National People's Congress adopted a new version of the Chinese Constitution.

B: The eleventh article of the Constitution reads that "the individual economy, operating within the limits prescribed by law, is a complement to the socialist public economy. The state protects the lawful rights and interests of the individual economy."

A: Writing protection of the private economy into the constitution was a milestone in its development. The article indicated that the state for the first time recognized the role and legal status of the individual economy. Although the constitution didn't mention the phrase "private sector," it was still a breakthrough in the history of New China. This created favorable conditions for the seeds of the private sector to sprout and grow in China.

B: In the following two years, the state worked out more policies to create a better environment in which the private economy could grow.

A: This encouraged more unemployed people to start their own businesses. The private economy boomed nationwide. Through saving and expanding, many self-employed people later formed larger enterprises.

B: If you look at the profiles of successful entrepreneurs in China, you'll find that many of today's millionaires trace their origins to self-employed vendors or traders. The reform policy provided them the opportunity to start their businesses and rise from rags to riches.

A: As they took measures to encourage the development of the individual economy, Party leaders adopted a cautious "wait and see" attitude toward the growth of the private sector.

B: In view of its active role in promoting economic development and increasing employment, the Party finally took another important step to embrace the private economy by granting it a place in the country's most fundamental laws.

A: In April 1988, the National People's Congress approved an amendment to the Chinese Constitution. The amendment included this new paragraph: "The state permits the private sector of the economy to exist and develop within the limits prescribed by law. The private sector is a complement to the socialist public economy. The state protects the lawful rights and interests of the private sector, and exercises guidance, supervision and control over the private sector."(WWw.hxen.net)

B: The new regulation acted as a stimulus to the development of the private sector. The number of private businesspeople soared to more than 20 million by the end of the 1980s. Many people even resigned from stable government jobs to run private businesses.

A: All right, that ends today's review of China's reform and opening up policy over the past 30 years. Listeners' Garden will continue after the break.