In 1978 China abandoned a planned economy that the government thought could facilitate productive forces and would guarantee fairness. Li Yining, a professor of economics at Peking University stated that China was wrong on both counts. See How China’s Leaders Think (2010), by Robert L. Kuhn, page 98.
Professor Li states “After several decades under the planned economy, the facts tell us that enterprises and people are not motivated – and without motivation, productive forces cannot develop. Under the planned economy, there is no competition, no equal opportunities, and no freedom to relocate. ….. After the Cultural Revolution, China’s economy . . . [more]