MarketTechnological and industrial history of China
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Technological and industrial history of China

At the time of its founding in 1949, the People's Republic of China (PRC) was one of the poorest countries in the world. In the early 1950s, its industry developed rapidly through a state-led process heavily influenced by the Soviet experience. Aiming to close the gap between its political ambitions and its phase of development, China began the Great Leap Forward, which sought to even more rapidly industrialize the country. The effort largely failed, and its policies contributed to famine.

Overview
In the first half of the 20th century, approaches to developing industry differed significantly by region. Most of its industry was labor-intensive light industry like textiles and other consumer goods. Throughout the 1950s, China gradually restructured its industries under state ownership. China's state-led industrialization in the early 1950s was heavily influenced by the Soviet experience. During China's First Five-Year Period (1953–1957), industrial development was the primary goal. The First Five-Year Plan's highest industrial sector priorities included: power plants, steel, mining, machinery, chemicals, and national defense, Until the middle of the 1960s, China's industry was largely found in northeast China. This included small-scale enterprises (not just large enterprises) producing electronics and that China could use the methods of a people's war to "smash electronic mysticism" and rapidly develop in the age of electronics. Through its distribution of infrastructure, industry, and human capital around the country, the Third Front created favorable conditions for subsequent market development and private enterprise, Improved relationships with the capitalist countries, which began during the later Mao Zedong period and continued during Deng's leadership, along with the policymakers' perceptions of economic stagnation, prompted China to move further from the then-conventional approach to socialist industrialization. Prior national science and technology plans like the 863 Program and the Project 973 had promoted basic scientific research whereas the Medium to Long-Term Plan focused on promoting seven industries deemed strategically significant. Its goal is to boost China's innovation in sectors deemed critical for the future of the world economy. China's government takes a market-oriented approach to AI, and has sought to encourage private tech companies in developing AI. First, it seeks to rely more on China's domestic consumers. == Manufacturing industry ==
Manufacturing industry
China's manufacturing sector developed according to the principle of "walking on two legs," a policy of self-reliance introduced in the 1950s. In the 1980s one leg consisted of the state-funded and state-controlled large and medium-sized plants with the most qualified personnel and the most advanced equipment. The other leg was small-scale plants using inferior equipment and large amounts of local labor. Together, the two sectors produced a wide range of industrial products. In most cases the larger plants accounted for the bulk of production, but the smaller enterprises were increasing their share and producing a significant percentage of cement, fertilizers, and farm machinery. When the 2008 financial crisis resulted in decreased demand from Western markets, Chinese manufacturers re-oriented towards the domestic market. Many focused on domestic online marketing, either through creating their own brands or selling to other Chinese online sellers. Chinese firms that developed into world industry leaders included BOE Technology, TCL-CSOT, TIANMA, and Visionox. China had no domestic production at the time, and optical fiber was too expensive to purchase abroad. As a result, China's central government decided to develop the country's own optical fiber industry. By the end of the 1970s, China had a sufficiently developed optical fiber industry to manufacture it for commercial use. == Construction ==
Construction
Beginning in 2010 and continuing through at least 2024, China has the world's largest construction market. Housing construction Modern housing has been in chronic shortage in contemporary China. Housing conditions in 1949 were primitive and crowded, and massive population growth since then has placed great strains on the nation's building industry. According to 1985 estimates, 46 million additional units of housing, or about 2.4 billion square meters of floor space, would be needed by the year 2000 to house every urban family. Adequate housing was defined as an average of eight square meters of living space per capita. However, as of 1984, the average per capita living space was only 4.8 square meters. Housing specialists suggested that the housing construction and allocation system be reformed and that the eight-square-meter target be achieved in two stages: six square meters by 1990 and the additional two square meters between 1990 and 2000. To help relieve the situation, urban enterprises were increasing investment in housing for workers. In 1985 housing built by state and collective enterprises in cities and towns totaled 130 million square meters of floor space. In the countryside, housing built by farmers was 700 million square meters. Capital construction Since the 1950s, the capital construction industry has been plagued by excessive growth and compartmentalization. There were frequent cost overruns and construction delays, and resources were overtaxed. Project directors often failed to predict accurately the need for such elements as transportation, raw materials, and energy. A large number of small factories were built, providing surplus capacity at the national level but with deficient economies of scale at the plant level. Poor cooperation among ministries and provinces resulted in unnecessary duplication. Because each area strove for self-sufficiency in all phases of construction, specialization suffered. Since the early years of the People's Republic, overinvestment in construction has been a persistent problem. Fiscal reforms in 1979 and 1980 exacerbated overinvestment by allowing local governments to keep a much greater percentage of the revenue from enterprises in their respective areas. Local governments could then use the retained earnings to invest in factories in their areas. These investments, falling outside the national economic plan, interfered with the central government's control of capital investment. In 1981 the economy underwent a period of "readjustment," during which the investment budget for capital construction was sharply reduced. This administrative solution to overinvestment proved ineffective, and later reforms concentrated on economic measures such as tax levies to discourage investment. The issuance of interest-bearing loans instead of grants was also intended to control construction growth. Despite reforms, capital construction continued at a heated pace in 1986. The majority of the new investment was unplanned, coming from loans or enterprises' internal capital. During the Seventh Five-Year Plan, 925 medium-and large-scale projects were scheduled. The government planned to allocate ¥1.3 trillion for fixed assets, an increase of 70 percent over the Sixth Five-Year Plan. Forty percent of the funds were allocated for new projects, and the remaining 60 percent for renovation or expansion of existing facilities. Some of the projects involved were power-generating stations, coal mines, railroads, ports, airports, and raw-material production centers. == Mining industry ==
Energy industry
Oil Nuclear power == Communications industry ==
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