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Before the foundation of People's Republic of China, after revolution in 1949, it was considered to be a country dominated by agriculture and light industrial sectors. Economic lifelines of the country were possessed by business tycoons, whose fortunes valued at 20 billion U.S. dollars. Monopolised capitalism closely linked with foreign imperialism was the economic order of the day. Modern industry hardly accounted for 10% of the gross industrial-agricultural output Resistance against Japan (1937-1945) had further dwindled the industrial production of China. Production in light industry dropped by 30% and heavy industry by 70%, pig iron by 86%, steel by 83%, coal by 48%, electricity 28%, textiles 32%, and cigarettes by 33% This decreasingly lowered the percentage of Chinese industrial output in the world's total production. In steel Chinese share reduced to 158000 tons, 4300 million KWH in electricity and 32 million tons in coal, reflecting less than 0.1%, 0.5% and 1.9% respectively, in total industrial production of the world. Machine building shops, employed with 15 labourers, carried on repair works only. Hardly 1600 metal cutting lathes was the annual turn out. Workers employed in industry totaled to 3 million reflecting 0.6% of the total population.