Yes, China’s rapid industrial growth is traced hack to its reforms in 1978, which were introduced in phases. In the initial phase, reforms were initiated in agriculture, foreign trade and investment sectors. Commune lands were divided into small plots which were allocated to individual households for use and not for the ownership. They were allowed to keep all income from the land after paying stipulated taxes. This led to an increase in agricultural productivity.
In the later phase, reforms were initiated in the industrial sector. Private sector firms and township and village enterprises, were allowed to produce goods. Enterprises owned by government (known as State Owned Enterprises-SOEs), were made to face competition at this stage to enhance their efficiency.
Dual pricing was involved in reforms. Prices were fixed in two ways, farmers and industrial units were required to buy and sell fixed quantities of inputs and outputs on the basis of prices fixed by the government and the rest were purchased and sold at market price. Market mechanism gained strength over the years as the proportion of goods or inputs transacted in the market increased with rise in aggregate production. This contributed to greater efficiency. Special Economic Zones (SEZ) were set up in order to attract foreign investors for aiding in capital formation in the country for expanding output.