Urban Industrial Reform in China: Problems and Prospects

This article places urban industrial reform in China in its broad historical context. The reform initiatives to date are a direct reaction to shortcomings of planning. While decentralization and increased reliance on markets and short-range managerial decisionmaking are more commonly noted in discussions about change in China, interpretation of current reforms should emphasize centralization of certain long-range aspects of the planning process, such as investment and basic price structure. Events prior to and following Tiananmen Square become more meaningful within this broader perspective.