China s economic situation from 1949 to 1958

In 1949, the overall economic situation of Li Humin in China was greatly improved compared with 1948, and the founding of the People's Republic of China put an end to the long-term war and turmoil, so that the national economy, which had been in a long-term depression, showed a sharp upward trend on the whole, and the economy began to recover. The country began to develop heavy industry, and the production value of steel, machinery, and ordnance reached a new high.

In this year, New China had just been founded, banditry was rampant, and a large area of land in the south had not yet been liberated, even a large area of land in the liberated areas, and a large number of reactionary forces still existed. The public order situation is still very grim, and the war of the year has made New China full of holes and wastes. The people's food and clothing have not been solved, and the economic situation of that year is miserable.

On October 1, 1949, the People's Republic of China was proclaimed, and years of war and chaos were basically over, but the national economy was on the verge of collapse.

First, the infrastructure has been severely damaged. In the later stage of the Kuomintang's military defeat, it destroyed a large number of factory infrastructures, scavenged gold and silver coins, and imposed an economic blockade on New China by imperialism, making economic development difficult.

Second, the economic foundation is quite weak. China's long-term semi-feudal and semi-colonial state, from the Opium War in 1840 to the founding of the People's Republic of China in 1949, China's tariffs can not be independent, "freedom" is restricted, China has not been able to establish an independent industrial system, heavy industry base is quite weak, under the long-term robbery of imperialism and the wanton collection of bureaucratic capital, resulting in the decline of industrial and agricultural production, the people live in extreme poverty.

Third, prices are skyrocketing. In the last days of the Kuomintang's stay on the mainland, due to the maintenance of a large amount of military spending, there were huge deficits year after year. The only way to compensate for this is to issue paper money indiscriminately, and as a result, inflation has intensified.

Fiat currency and gold yuan coupons are like waste paper. Military, political, public, and religious personnel in old China, as well as disaster victims and urban unemployed people, numbered in the tens of millions, needed to be taken over. As a result, people's daily necessities such as grain, cotton yarn, chemicals, and hardware have skyrocketed.

In this year, New China had just been founded, banditry was rampant, and a large area of land in the south had not yet been liberated, even a large area of land in the liberated areas, and a large number of reactionary forces still existed. The public order situation is still very grim, and the flames of war in the past year have left New China full of holes and a hundred ruins waiting to be rebuilt. The people's food and clothing have not been solved, and the economic situation of that year is miserable.

The economic situation in 1949 was a blank period at the time of the transition between the old and new regimes.

China's development history: 1949 to the present, there have been 72 years of development.

1. The public-owned economy occupies a dominant position in the ownership structure. The completion of the socialist transformation in 1956 meant that China's ownership structure and mode of adjustment had been transformed into a completely planned economy.

2. The state adopts direct directive administration for economic activities. One of the main signs of the planned economic system is that the state or the enterprise has become the core subject of economic operation, and the enterprise has become an appendage of the enterprise because it only implements the production plan set by the reed.

3. Economic decision-making power is highly centralized. The state is not only responsible for the allocation of resources at the macro level, but also plans the income and expenditure of enterprises and individuals at the micro level, so as to realize the allocation of resources among micro subjects.