Enterprise management-moves towards democracy?

This chapter looks at a different aspect of the process of reform which has been taking place in China since 1978, that of enterprise management. It discusses the changes which have taken place in three areas – the election of managers, the role of workers' congresses and Chinese trade unions. The chapter focuses on Chinese and other published sources, visits to over 20 enterprises in the summer of 1981 and discussions with Chinese economists, management experts, trade union cadres and officials from state economic organisations. The 'trial' enterprises in China have been chosen according to criteria including relatively good management, large size and profitability. The economic reforms have not only created new demands for managerial skills but have also been associated with moves towards greater democracy in enterprise management. However advocates of further reforms are pressing for further moves towards democracy, notably more power for workers' congresses, along with the extension of other economic reforms, notably in the price system.