8 jan 1979 ano - Deng introduces the Xiang

Descrição:

Mao's plans of collectivisation had failed, due to a lack of profit motive. The commune was replaced with the xiang, where each farmer had a quota of produce that it had to supply to the sate. However, farmers were allowed to sell any extra produce for a profit at the market. Consequently, farmers were rewarded for their own work and skills.

Farmers were also allowed to grow their own crops that best suited their land, instead of just rice and wheat, as was commanded previously by Mao.

Dengs changes had a tremendous effect. The production of grain doubled in less than ten years.